Guidewire Software, Inc. · GWRE · FY2026 Q2 · Calendar Q1 2026
Guidewire Q2 FY2026: Cloud demand and AI products strengthen outlook
Guidewire's Q2 evidence supports a constructive operating thesis: cloud modernization demand, strong retention, large insurer wins and early AI-product traction are supporting growth. The main tests are whether AI adoption scales, true-up revenue normalizes, and new products convert into durable ARR.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
Compared with the prior quarter, Guidewire reported stronger evidence of product commercialization: PricingCenter closed its first deal, ProNavigator produced nine Q2 deals, and the company added large insurer wins including an $8 billion DWP Canadian insurer win and a multi-year Aviva UK migration. Management also highlighted 22% ARR growth, fully ramped ARR above $1.42 billion, gross margin expansion to 68%, retention above 99%, and raised full-year guidance.
Guidance delta
Full-year FY2026 ARR and revenue guidance was raised.
Key takeaways
- ARR grew 22% year over year, with fully ramped ARR outpacing headline ARR.
- Gross ARR retention remained above 99%, while large Tier 1 wins and longer contracts supported demand.
- PricingCenter recorded its first deal, and ProNavigator launched with nine Q2 deals.
- Management cited demand for cloud modernization and AI-driven products across multiple regions.
Management priorities
- Scale PricingCenter sales and integrate it with PolicyCenter.
- Advance ProNavigator across underwriting and claims workflows.
- Expand Industry Intel analytics across more lines of business.
- Develop agentic development tools and continue cloud migration with system integrators and AI model providers.
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Analyst 52W Price Targets
Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 2, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| DA Davidson | Buy | Buy | Maintain | Sep 9, 2026 |
| Wells Fargo | Overweight | Overweight | Maintain | Sep 4, 2026 |
| RBC Capital | Outperform | Outperform | Maintain | Sep 4, 2026 |
| Piper Sandler | Overweight | Overweight | Maintain | Sep 4, 2026 |
| Oppenheimer | Outperform | Outperform | Maintain | Sep 4, 2026 |
| Needham | Hold | Hold | Maintain | Sep 4, 2026 |
| Citizens | Market Outperform | Market Outperform | Maintain | Sep 4, 2026 |
| Citigroup | Neutral | Neutral | Maintain | Sep 4, 2026 |
| BTIG | Buy | Buy | Maintain | Sep 4, 2026 |
| Baird | Outperform | Outperform | Maintain | Aug 31, 2026 |
| Guggenheim | Buy | Buy | Maintain | Aug 27, 2026 |
| JP Morgan | Overweight | Overweight | Maintain | Jul 14, 2026 |
| Stifel | Buy | Buy | Maintain | Jun 5, 2026 |
| Goldman Sachs | Buy | Buy | Maintain | Jun 5, 2026 |
| Raymond James | Outperform | Outperform | Maintain | Sep 5, 2025 |
| JMP Securities | Market Outperform | Market Outperform | Maintain | Jun 4, 2025 |
| B of A Securities | Underperform | Underperform | Maintain | Jun 4, 2025 |
| Citizens Capital Markets | Market Outperform | Market Outperform | Maintain | Mar 26, 2025 |
| Stifel Nicolaus | Hold | Hold | Maintain | Sep 27, 2019 |
| PiperJaffray | Neutral | Overweight | Downgrade | Mar 4, 2019 |
| Deutsche Bank | Hold | Buy | Downgrade | Oct 9, 2018 |
| Keybanc | Overweight | Overweight | Maintain | Sep 21, 2018 |
| Bank of America | Neutral | Neutral | Maintain | Sep 21, 2018 |
| Jefferies | Overweight | Neutral | Upgrade | Jun 13, 2017 |
| UBS | Buy | Buy | Maintain | Jun 2, 2016 |
Named analyst price targets
Upside is calculated against the persisted previous close $155.32. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Oppenheimer | Analyst unavailable | $210 | $202.86 | +35.2% | Sep 4, 2026 |
| BTIG | Analyst unavailable | $220 | $202.86 | +41.6% | Sep 4, 2026 |
| Wells Fargo | Michael Turrin | $195 | $202.86 | +25.5% | Sep 4, 2026 |
| BTIG | Allan Verkhovski | $230 | $201.09 | +48.1% | Sep 2, 2026 |
| Robert W. Baird | Joe Vruwink | $235 | $205.85 | +51.3% | Aug 31, 2026 |
| Guggenheim | Analyst unavailable | $210 | $191.07 | +35.2% | Aug 27, 2026 |
| UBS | Analyst unavailable | $210 | $170.53 | +35.2% | Aug 10, 2026 |
| Piper Sandler | Billy Fitzsimmons | $210 | $170.53 | +35.2% | Aug 10, 2026 |
| Guggenheim | Tamjid Chowdhury | $180 | $133.97 | +15.9% | Jul 22, 2026 |
| D.A. Davidson | Peter Heckmann | $222 | $136.06 | +42.9% | Jun 8, 2026 |
| Goldman Sachs | Adam Hotchkiss | $225 | $141.84 | +44.9% | Jun 5, 2026 |
| Raymond James | Alexander Sklar | $180 | $151.17 | +15.9% | Jun 5, 2026 |
| Wells Fargo | Michael Turrin | $190 | $151.17 | +22.3% | Jun 5, 2026 |
| Stifel Nicolaus | Parker Lane | $200 | $151.17 | +28.8% | Jun 5, 2026 |
| RBC Capital | Rishi Jaluria | $215 | $151.17 | +38.4% | Jun 5, 2026 |
| Stifel Nicolaus | Parker Lane | $225 | $142.13 | +44.9% | May 29, 2026 |
| Stifel Nicolaus | Parker Lane | $250 | $162.24 | +61.0% | Mar 6, 2026 |
| Oppenheimer | Analyst unavailable | $250 | $122.22 | +61.0% | Feb 24, 2026 |
| BTIG | Allan Verkhovski | $175 | $122.29 | +12.7% | Feb 18, 2026 |
| RBC Capital | Rishi Jaluria | $300 | $185.06 | +93.1% | Jan 9, 2026 |
| Wells Fargo | Michael Turrin | $250 | $187.68 | +61.0% | Jan 8, 2026 |
| D.A. Davidson | Analyst unavailable | $246 | $193.59 | +58.4% | Dec 17, 2025 |
| BTIG | Analyst unavailable | $250 | $193.59 | +61.0% | Dec 16, 2025 |
| D.A. Davidson | Peter Heckmann | $250 | $252.3 | +61.0% | Oct 29, 2025 |
| Stifel Nicolaus | Parker Lane | $300 | $260.71 | +93.1% | Sep 5, 2025 |
| D.A. Davidson | Peter Heckmann | $226 | $208 | +45.5% | May 22, 2025 |
| Robert W. Baird | Analyst unavailable | $236 | $173.24 | +51.9% | Mar 7, 2025 |
| JMP Securities | Analyst unavailable | $250 | $173.24 | +61.0% | Mar 7, 2025 |
| Bank of America Securities | Brad Sills | $135 | $185.82 | -13.1% | Oct 11, 2024 |
| Wells Fargo | Michael Turrin | $205 | $183.37 | +32.0% | Oct 11, 2024 |
| Robert W. Baird | Joe Vruwink | $204 | $182.17 | +31.3% | Oct 8, 2024 |
| Oppenheimer | Ken Wong | $200 | $184.22 | +28.8% | Oct 4, 2024 |
| RBC Capital | Rishi Jaluria | $180 | $162.96 | +15.9% | Sep 6, 2024 |
| Stifel Nicolaus | Parker Lane | $175 | $143.93 | +12.7% | Sep 6, 2024 |
| Robert W. Baird | Jon Vruwink | $175 | $143.93 | +12.7% | Sep 6, 2024 |
| BTIG | Matt VanVliet | $165 | $147.5 | +6.2% | Aug 30, 2024 |
| Wells Fargo | Michael Turrin | $175 | $146.92 | +12.7% | Aug 21, 2024 |
| Oppenheimer | Ken Wong | $170 | $148.4 | +9.5% | Aug 20, 2024 |
| RBC Capital | Rishi Jaluria | $170 | $134.86 | +9.5% | Jun 27, 2024 |
| Wells Fargo | Michael Turrin | $150 | $135.61 | -3.4% | Jun 21, 2024 |
| Robert W. Baird | Jon Vruwink | $152 | $127.46 | -2.1% | Jun 6, 2024 |
| D.A. Davidson | Peter Heckmann | $142 | $127.46 | -8.6% | Jun 5, 2024 |
| Stifel Nicolaus | Parker Lane | $140 | $108.05 | -9.9% | Jun 5, 2024 |
| Wells Fargo | Michael Turrin | $140 | $108.05 | -9.9% | Jun 5, 2024 |
| RBC Capital | Rishi Jaluria | $130 | $108.05 | -16.3% | Jun 5, 2024 |
| Oppenheimer | Ken Wong | $140 | $108.05 | -9.9% | Jun 5, 2024 |
| Goldman Sachs | Kevin Kumar | $146 | $108.05 | -6.0% | Jun 5, 2024 |
| BTIG | Matthew VanVliet | $140 | $108.05 | -9.9% | Jun 5, 2024 |
| Stifel Nicolaus | Parker Lane | $95 | $93.82 | -38.8% | Sep 8, 2023 |
| Wells Fargo | Michael Turrin | $85 | $83.8 | -45.3% | Aug 31, 2023 |
| RBC Capital | Rishi Jaluria | $90 | $75.32 | -42.1% | Mar 7, 2023 |
| JMP Securities | Joe Goodwinm | $95 | $75 | -38.8% | Mar 7, 2023 |
| RBC Capital | Rishi Jaluria | $100 | $59.96 | -35.6% | Dec 7, 2022 |
| RBC Capital | Analyst unavailable | $125 | $92.8 | -19.5% | Apr 19, 2022 |
| Bank of America Securities | Bradley Sills | $125 | $113.12 | -19.5% | Oct 4, 2021 |
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Start freeCompany context
Snapshot as of publicationGuidewire 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
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:36:15.940040+00:00
- Polygon adjusted daily market bars · 2026-10-02T09:16:16.765953+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-02T09:16:16.762988+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 2026-10-02. For educational purposes only; not investment advice.