Guidewire Software, Inc. · GWRE · FY2025 Q4 · Calendar Q3 2025

Guidewire tops $1B ARR as cloud adoption and margins improve

The quarter supports the view that cloud adoption, resilient demand, and improving margins can underpin continued growth, while AI commercialization, premium growth, and ARR durability remain key tests.

Reported After market closeNYSETechnology $13.93B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.84 Consensus $0.64
EPS surprise +32.3% Reported versus consensus
Reported revenue $356.6M Consensus $337.8M
Revenue surprise +5.6% Reported versus consensus

Market reaction

event-close to next-session close
Stock move +20.1% Event window
SPY move -0.3% Same window
Abnormal move +20.4% Stock minus SPY
Volume 4.9× Versus trailing sessions
Subsequent drift -11.8% Up to 20 sessions
GWRESPY benchmark

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Transcript intelligence

What changed

ARR moved above $1 billion, cloud ARR reached 74% of total, and subscription and support gross margins improved to 70%. Guidewire also highlighted a landmark Liberty Mutual agreement, completed the Quanti acquisition, and continued its focus on AI and analytics.

Guidance delta

Maintained; management highlighted a healthy Q1 outlook and continued momentum.

Key takeaways

  • ARR exceeded $1 billion, up 19% year over year, with cloud ARR at 74% of total.
  • Subscription and support gross margins improved to 70%.
  • A 10-year, multi-product Liberty Mutual agreement was described as the largest strategic win to date.
  • Management emphasized AI, analytics, cloud migration, and ecosystem expansion as growth priorities.

Management priorities

  • Expand Guidewire Cloud Platform adoption and continue on-premises migrations.
  • Develop AI-enabled pricing, underwriting, claims, and predictive analytics offerings.
  • Deepen the partner and system-integrator ecosystem.
  • Showcase new innovations at the October Connections User Conference.

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Earnings History

Estimate Beat Miss Match
GWRE EPS earnings history estimate and actual scatter chart 10 reported fiscal quarters and 4 future estimate-only quarters. Q3 '24 estimate $0.13 Q3 '24 actual $0.26, beat Q4 '24 estimate $0.54 Q4 '24 actual $0.62, beat Q3 '25 estimate $0.46 Q3 '25 actual $0.88, beat Q4 '25 estimate $0.64 Q4 '25 actual $0.84, beat Q1 '26 estimate $0.61 Q1 '26 actual $0.66, beat Q2 '26 estimate $0.77 Q2 '26 actual $1.17, beat Q3 '26 estimate $0.74 Q3 '26 actual $0.82, beat Q4 '26 estimate $0.93 Q4 '26 actual $0.99, beat Q1 '27 estimate $0.75 Q2 '27 estimate $1.08 Q3 '27 estimate $1.02 Q4 '27 estimate $1.38
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Analyst Consensus ?

ConsensusBuy25 ratings
Bullish1872.0%
Neutral624.0%
Bearish14.0%

Analyst 52W Price Targets

$167.32Current
$95Low
$191.54Average
$250High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 11, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
DA Davidson Buy BuyMaintainOct 2, 2026
Wells Fargo Overweight OverweightMaintainSep 4, 2026
RBC Capital Outperform OutperformMaintainSep 4, 2026
Piper Sandler Overweight OverweightMaintainSep 4, 2026
Oppenheimer Outperform OutperformMaintainSep 4, 2026
Needham Hold HoldMaintainSep 4, 2026
Citizens Market Outperform Market OutperformMaintainSep 4, 2026
Citigroup Neutral NeutralMaintainSep 4, 2026
BTIG Buy BuyMaintainSep 4, 2026
Baird Outperform OutperformMaintainAug 31, 2026
Guggenheim Buy BuyMaintainAug 27, 2026
JP Morgan Overweight OverweightMaintainJul 14, 2026
Stifel Buy BuyMaintainJun 5, 2026
Goldman Sachs Buy BuyMaintainJun 5, 2026
Raymond James Outperform OutperformMaintainSep 5, 2025
JMP Securities Market Outperform Market OutperformMaintainJun 4, 2025
B of A Securities Underperform UnderperformMaintainJun 4, 2025
Citizens Capital Markets Market Outperform Market OutperformMaintainMar 26, 2025
Stifel Nicolaus Hold HoldMaintainSep 27, 2019
PiperJaffray Neutral OverweightDowngradeMar 4, 2019
Deutsche Bank Hold BuyDowngradeOct 9, 2018
Keybanc Overweight OverweightMaintainSep 21, 2018
Bank of America Neutral NeutralMaintainSep 21, 2018
Jefferies Overweight NeutralUpgradeJun 13, 2017
UBS Buy BuyMaintainJun 2, 2016
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Named analyst price targets

Upside is calculated against the persisted current price $167.32. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
OppenheimerAnalyst unavailable$210$202.86 +25.5%Sep 4, 2026
BTIGAnalyst unavailable$220$202.86 +31.5%Sep 4, 2026
Wells FargoMichael Turrin$195$202.86 +16.5%Sep 4, 2026
BTIGAllan Verkhovski$230$201.09 +37.5%Sep 2, 2026
Robert W. BairdJoe Vruwink$235$205.85 +40.4%Aug 31, 2026
GuggenheimAnalyst unavailable$210$191.07 +25.5%Aug 27, 2026
UBSAnalyst unavailable$210$170.53 +25.5%Aug 10, 2026
Piper SandlerBilly Fitzsimmons$210$170.53 +25.5%Aug 10, 2026
GuggenheimTamjid Chowdhury$180$133.97 +7.6%Jul 22, 2026
D.A. DavidsonPeter Heckmann$222$136.06 +32.7%Jun 8, 2026
Goldman SachsAdam Hotchkiss$225$141.84 +34.5%Jun 5, 2026
Raymond JamesAlexander Sklar$180$151.17 +7.6%Jun 5, 2026
Wells FargoMichael Turrin$190$151.17 +13.6%Jun 5, 2026
Stifel NicolausParker Lane$200$151.17 +19.5%Jun 5, 2026
RBC CapitalRishi Jaluria$215$151.17 +28.5%Jun 5, 2026
Stifel NicolausParker Lane$225$142.13 +34.5%May 29, 2026
Stifel NicolausParker Lane$250$162.24 +49.4%Mar 6, 2026
OppenheimerAnalyst unavailable$250$122.22 +49.4%Feb 24, 2026
BTIGAllan Verkhovski$175$122.29 +4.6%Feb 18, 2026
RBC CapitalRishi Jaluria$300$185.06 +79.3%Jan 9, 2026
Wells FargoMichael Turrin$250$187.68 +49.4%Jan 8, 2026
D.A. DavidsonAnalyst unavailable$246$193.59 +47.0%Dec 17, 2025
BTIGAnalyst unavailable$250$193.59 +49.4%Dec 16, 2025
D.A. DavidsonPeter Heckmann$250$252.3 +49.4%Oct 29, 2025
Stifel NicolausParker Lane$300$260.71 +79.3%Sep 5, 2025
D.A. DavidsonPeter Heckmann$226$208 +35.1%May 22, 2025
Robert W. BairdAnalyst unavailable$236$173.24 +41.0%Mar 7, 2025
JMP SecuritiesAnalyst unavailable$250$173.24 +49.4%Mar 7, 2025
Bank of America SecuritiesBrad Sills$135$185.82 -19.3%Oct 11, 2024
Wells FargoMichael Turrin$205$183.37 +22.5%Oct 11, 2024
Robert W. BairdJoe Vruwink$204$182.17 +21.9%Oct 8, 2024
OppenheimerKen Wong$200$184.22 +19.5%Oct 4, 2024
RBC CapitalRishi Jaluria$180$162.96 +7.6%Sep 6, 2024
Stifel NicolausParker Lane$175$143.93 +4.6%Sep 6, 2024
Robert W. BairdJon Vruwink$175$143.93 +4.6%Sep 6, 2024
BTIGMatt VanVliet$165$147.5 -1.4%Aug 30, 2024
Wells FargoMichael Turrin$175$146.92 +4.6%Aug 21, 2024
OppenheimerKen Wong$170$148.4 +1.6%Aug 20, 2024
RBC CapitalRishi Jaluria$170$134.86 +1.6%Jun 27, 2024
Wells FargoMichael Turrin$150$135.61 -10.4%Jun 21, 2024
Robert W. BairdJon Vruwink$152$127.46 -9.2%Jun 6, 2024
D.A. DavidsonPeter Heckmann$142$127.46 -15.1%Jun 5, 2024
Stifel NicolausParker Lane$140$108.05 -16.3%Jun 5, 2024
Wells FargoMichael Turrin$140$108.05 -16.3%Jun 5, 2024
RBC CapitalRishi Jaluria$130$108.05 -22.3%Jun 5, 2024
OppenheimerKen Wong$140$108.05 -16.3%Jun 5, 2024
Goldman SachsKevin Kumar$146$108.05 -12.7%Jun 5, 2024
BTIGMatthew VanVliet$140$108.05 -16.3%Jun 5, 2024
Stifel NicolausParker Lane$95$93.82 -43.2%Sep 8, 2023
Wells FargoMichael Turrin$85$83.8 -49.2%Aug 31, 2023
RBC CapitalRishi Jaluria$90$75.32 -46.2%Mar 7, 2023
JMP SecuritiesJoe Goodwinm$95$75 -43.2%Mar 7, 2023
RBC CapitalRishi Jaluria$100$59.96 -40.2%Dec 7, 2022
RBC CapitalAnalyst unavailable$125$92.8 -25.3%Apr 19, 2022
Bank of America SecuritiesBradley Sills$125$113.12 -25.3%Oct 4, 2021
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Company context

Snapshot as of publication

Guidewire Software, Inc. is a global supplier of software solutions tailored for the property and casualty insurance industry. Its primary offering is Guidewire InsuranceSuite, a comprehensive platform that incorporates core applications like PolicyCenter, BillingCenter, and ClaimCenter. The company also furnishes Guidewire InsuranceNow, a cloud-native platform providing integrated policy, billing, and claims administration for insurers, alongside a self-managed version of the InsuranceSuite. Guidewire's product portfolio extends to specialized management tools, including Rating Management for accurate insurance product pricing, Reinsurance Management for executing rules-based reinsurance strategies throughout underwriting and claims processes, Client Data Management for effective utilization of customer information, and Product Content Management, which provides software tools and standardized templates to streamline the introduction and modification of insurance products.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-10-11T03:30:44.776221+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-11T03:30:44.773302+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-11. For educational purposes only; not investment advice.