revenue
1.707–1.727 $billion
FY 2027
official guidance
GUIDEWIRE SOFTWARE, INC.
Last · NYSE$164.92-0.86 (-0.52%)close · yahoo · 18h ago
Market cap$13.52B82.0M sh
P/E · TTM101fwd 30.9 · eps 1.63
Beta1.03vs S&P 500
Div yield0.00%annual · TTM
52w range
$102.30$255.89
Volume897.7Ksession
| Revenue | $1.4B |
|---|---|
| Operating income | $117.2M |
| Net income | $137.9M |
| Free cash flow | $337.3M |
| Operating margin | 8.2% |
| Net margin | 9.7% |
| Return on equity | 10.5% |
| Period | TTM 2026-04-30 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Durable backlog, record retention, expanding margins, and early AI cross-sell momentum outweigh conservative near-term guidance.
Buy: Guidewire delivered 19% constant-currency ARR growth, 22% fully ramped ARR growth, 37% subscription revenue growth, and 63% non-GAAP operating-income growth to $340 million.
FY2027 guidance remains strong at 18% ARR growth and 28% subscription-and-support revenue growth, with more than half of planned net-new ARR already contracted; the main tension is that management is assuming higher attrition and slower first-year ramps despite the stronger fully ramped trajectory.
Themes
- Arr Growth
- Cloud Migration
- Subscription Margins
- Pronavigator
- Pricingcenter
- Agentic Ai
Near term
FY2027 ARR guidance of $1.45-$1.46 billion may look conservative versus 22% fully ramped ARR growth, creating upside if deal timing and retention outperform.
License revenue is expected to fall approximately $46 million as cloud migrations accelerate, increasing the importance of subscription growth and backlog conversion.
ProNavigator and PricingCenter deal momentum will be watched for evidence that new products are becoming meaningful cross-sell and net-new growth drivers.
Q1 services margin is expected around breakeven because of fixed-fee engagement timing, while full-year services margin is guided near 12%.
Longer term
Cloud ARR now represents 84% of total ARR and subscription-and-support gross margin is guided to 75%-76%, supporting continued operating leverage toward the 80% long-term margin target.
Fully ramped ARR has grown 22% for two consecutive years, while the number of customers with fully ramped ARR above $5 million increased to 105 from 86, strengthening backlog visibility.
Nationwide's Tier 1 PricingCenter deployment could validate Guidewire's ability to expand from core systems into pricing, rating, and broader insurance operating workflows.
Guidewire's low gross ARR attrition and native insurance data context create a potential moat against horizontal AI platforms, but the moat depends on continued product execution and ecosystem integration.
Implementation automation and AI tooling could reduce customer migration friction and expand the addressable market, though benefits may accrue partly to systems integrators rather than Guidewire services revenue.
Red flags
Management did not disclose ARR or revenue contribution for ProNavigator, PricingCenter, or its agentic capabilities; early sales traction is mostly deal-count evidence and ProNavigator momentum was primarily cross-sell.
Analysts pressed on AI-native competitors and frontier-model providers. Management argued Guidewire should own the core while remaining open to third-party AI, but did not quantify monetization, displacement risk, or defensibility.
FY2027 guidance assumes ARR attrition normalizes from record lows, removing roughly one percentage point of growth contribution, and management expects more modest first-year ramps on new products.
PricingCenter's sales-cycle length and attach rates remain too early to measure, despite management's confidence in future win rates.
Services gross margin fell to 12.5% from 12.9% as Guidewire invests in AI delivery capabilities, and implementation efficiency could reduce services revenue growth or shift economics toward systems integrators.
Forward outlook
revenue
1.24–1.246 $billion
FY 2027
official guidance
revenue growth
31 pct
FY 2027
official guidance
gross margin
75–76 pct
FY 2027
official guidance
gross margin
67–68 pct
FY 2027
official guidance
revenue
0.279–0.283 $billion
Q1 2027
official guidance
gross margin
77 pct
Q1 2027
official guidance
gross margin
65 pct
Q1 2027
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-09-11
- Cloud Migration
- Customer Concentration
- Arr Pricing Pressure
- Long Implementation Cycles
- Cloud Infrastructure Commitments
- Convertible Debt
- Ai And Cybersecurity
Red flags
- The ten largest customers represented 21% of fiscal 2026 revenue and 20% of fiscal 2025 revenue; the ten largest customers represented 20% of ARR at July 31, 2026.
- Customer implementations typically last six to 24 months or longer, and failures can result in credits, reduced fees, revenue reversals, renegotiated terms, or nonpayment.
- The company has $283.7 million of purchase commitments, including a disclosed $600 million five-year cloud-infrastructure obligation, while $690 million of convertible-note principal is due in fiscal 2030.
- Net accounts receivable increased to $193.7 million from $140.6 million year over year, while the allowance for credit losses and revenue reserves rose to $2.4 million from $1.2 million.
- Large customers can pressure average selling prices and ARR, and insurer consolidation could further increase customer concentration and negotiating leverage.
Upcoming earnings
9:00 PM UTC+1
Period
Oct 2026
Est. EPS
$0.72
Est. revenue
376.3M