A Business at a Glance
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Guidewire Software, Inc.
GWRE
$11.9B
Mkt Cap
$138.23
+5.21%
Guidewire Software, Inc. (GWRE) has a current P/E ratio of 130.4.
Guidewire Software, Inc. (GWRE) has a 5-year average return on invested capital (ROIC) of -3.3%. This is below average and may indicate limited pricing power.
Guidewire Software, Inc. (GWRE) has a market capitalization of $11.9B. It is classified as a large-cap stock.
Guidewire Software, Inc. (GWRE) does not currently pay a regular dividend.
Guidewire Software, Inc. (GWRE) operates in the Services-Prepackaged Software industry, within the Technology sector.
Guidewire Software, Inc. (GWRE) reported annual revenue of $1.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Guidewire Software, Inc. (GWRE) has a net profit margin of 5.8%. This is a modest margin.
Guidewire is a cloud-based software platform serving property and casualty insurers of all sizes globally, combining core systems of record with digital, analytics, and artificial intelligence capabilities. The company's foundational products—InsuranceSuite and InsuranceNow—are delivered primarily as cloud-based subscription services through the Guidewire Cloud Platform, supporting insurance operations including product definition, policy administration, claims management, and billing, with historical on-premise installations being phased out. Guidewire's business model is subscription-based, with pricing primarily tied to Direct Written Premium managed on the platform, supplemented by usage-based pricing for certain cloud-delivered products and professional services billed on time-and-materials or fixed-fee bases; initial subscription contracts typically span five years with annual renewals thereafter, and the company recognizes subscription revenue ratably over contract terms. The platform's competitive moat derives from its centrality to insurers' core operations, extensive customer evaluation cycles, high switching costs, and the strategic, multi-year commitments customers make; the company reaches customers through direct global sales teams and partnerships with system integrators, and serves a fragmented, highly regulated industry where insurers increasingly seek modern, cloud-based systems to enhance customer experience, operate efficiently, and introduce innovative products rapidly. Guidewire also provides digital engagement offerings for omnichannel sales and claims experiences, analytics products for data management and business insights, and the Guidewire Marketplace offering vetted insurtech applications; the company localizes products to address diverse regulatory, language, and currency requirements across its global customer base.
【Strong cloud migration momentum】 Management expects continued robust demand driven by insurers' need for modern, cloud-based core systems to support emerging capabilities including generative AI and agentic tools, with fully ramped ARR growth rates expected to outpace overall ARR growth into fiscal 2027 and beyond. The company is seeing larger deals with longer contract terms, reinforcing the durability of customer commitments and the strategic value of the platform; new product areas including ProNavigator and PricingCenter have exceeded initial expectations and are building pipeline momentum for future quarters. Management is leaning into field engineering and professional services programs to help customers maximize value from Guidewire Cloud Platform and leverage newer agentic capabilities, positioning the company to capture incremental services revenue and deepen customer relationships. The company expects to continue raising operating leverage through improved gross margins and disciplined expense management, while maintaining investment in product innovation, cloud infrastructure reliability, and security to meet Tier 1 insurance company expectations.
| Metric | Target | Period |
|---|---|---|
| ARR | $1.229 billion–$1.237 billion | FY2026 |
| Total Revenue | $1.46 billion–$1.47 billion | FY2026 |
| Subscription and Support Revenue | $963 million–$969 million | FY2026 |
| Services Revenue | approximately $270 million | FY2026 |
| GAAP Operating Income | $124 million–$134 million | FY2026 |
| Non-GAAP Operating Income | $314 million–$324 million | FY2026 |
| Cash Flow from Operations | $365 million–$380 million | FY2026 |
| CapEx | $30 million–$35 million | FY2026 |
ARR (FY2026): “we are maintaining our ARR outlook of $1.229 billion-$1.237 billion, which reflects growth of 18%-19% year-over-year”
Total Revenue (FY2026): “For total revenue, we now expect between $1.46 billion and $1.47 billion”
Subscription and Support Revenue (FY2026): “We expect between $963 million and $969 million in subscription and support revenue”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.4B | 1.2B | 980M | 905M | 813M | 743M |
| Net Income | 160M | 70M | -6.1M | -112M | -180M | -67M |
| EPS | $1.86 | $0.81 | $-0.07 | $-1.36 | $-2.16 | $-0.79 |
| Free Cash Flow | 337M | 295M | 189M | 33M | -47M | 93M |
| ROIC | 9.4% | 3.8% | -0.4% | -6.6% | -9.8% | -3.4% |
| Gross Margin | 64.0% | 62.5% | 59.5% | 50.6% | 46.4% | 52.4% |
| Debt/Equity | 0.51 | 0.46 | 0.30 | 0.33 | 0.25 | 0.22 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 117M | 41M | -53M | -149M | -199M | -106M |
| Operating Margin | 8.2% | 3.4% | -5.4% | -16.5% | -24.5% | -14.2% |
| ROE | 12.1% | 5.0% | -0.5% | -8.4% | -12.0% | -4.2% |
| Shares Outstanding | 86M | 86M | 87M | 82M | 84M | 84M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 350M | 381M | 424M | 510M | 653M | 720M | 742M | 743M | 813M | 905M | 980M | 1.2B | 1.4B |
| Gross Margin | 57.5% | 61.3% | 64.2% | 62.4% | 54.5% | 54.9% | 54.5% | 52.4% | 46.4% | 50.6% | 59.5% | 62.5% | 64.0% |
| R&D | 76M | 93M | 112M | 130M | 172M | 189M | 201M | 201M | 229M | 250M | 269M | 296M | 334M |
| SG&A | 35M | 41M | 51M | 57M | 76M | 74M | 85M | 143M | 165M | 170M | 168M | 184M | 199M |
| EBIT | 18M | 16M | 16M | 22M | -16M | 1.5M | -24M | -106M | -199M | -149M | -53M | 41M | 117M |
| Op. Margin | 5.3% | 4.3% | 3.9% | 4.3% | -2.4% | 0.2% | -3.2% | -14.2% | -24.5% | -16.5% | -5.4% | 3.4% | 8.2% |
| Net Income | 15M | 9.9M | 15M | 18M | -27M | 21M | -27M | -67M | -180M | -112M | -6.1M | 70M | 160M |
| Net Margin | 4.2% | 2.6% | 3.5% | 3.5% | -4.1% | 2.9% | -3.7% | -8.9% | -22.2% | -12.4% | -0.6% | 5.8% | 11.2% |
| Non-Recurring | -99K | -1K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 7.8% | 3.2% | 3.7% | 3.1% | -2.1% | 1.1% | -1.4% | -3.4% | -9.8% | -6.6% | -0.4% | 3.8% | 9.4% |
| ROE | 3.4% | 1.5% | 2.0% | 2.2% | -2.3% | 1.4% | -1.7% | -4.2% | -12.0% | -8.4% | -0.5% | 5.0% | 12.1% |
| ROA | 2.8% | 1.3% | 1.7% | 1.8% | -1.7% | 1.0% | -1.2% | -2.8% | -7.9% | -5.2% | -0.3% | 2.8% | 6.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 75M | 64M | 100M | 139M | 140M | 116M | 113M | 112M | -38M | 38M | 196M | 301M | 351M |
| Free Cash Flow | 70M | 57M | 93M | 133M | 131M | 71M | 92M | 93M | -47M | 33M | 189M | 295M | 337M |
| Owner Earnings | 19M | -6.6M | 10M | 44M | 21M | -8.3M | -25M | -54M | -231M | -154M | -16M | 116M | 85M |
| CapEx | 5.0M | 6.3M | 7.1M | 5.9M | 9.4M | 45M | 21M | 19M | 9.5M | 5.8M | 6.4M | 5.7M | 13M |
| Maint. CapEx | 14M | 19M | 23M | 23M | 30M | 33M | 36M | 51M | 56M | 49M | 66M | 24M | 88M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 14M | 19M | 23M | 23M | 30M | 33M | 36M | 51M | 56M | 49M | 66M | 24M | 88M |
| CapEx/OCF | 6.6% | 9.9% | 7.1% | 4.2% | 6.7% | 38.7% | 18.9% | 17.0% | N/A | 15.2% | 3.3% | 1.9% | 3.8% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 161M | 37M | 262M | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.7% | 0.6% | 3.9% | N/A | N/A | 0.0% |
| Stock-Based Comp | 43M | 51M | 66M | 72M | 90M | 92M | 102M | 115M | 137M | 143M | 146M | 162M | 177M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.1M | 2.1M |
| Balance Sheet | |||||||||||||
| Net Debt | -444M | -567M | -622M | -571M | -762M | -807M | -803M | -776M | -618M | -402M | -605M | -475M | -72M |
| Cash & Equiv. | 148M | 212M | 224M | 263M | 437M | 254M | 367M | 385M | 606M | 402M | 548M | 698M | 750M |
| Long-Term Debt | N/A | 5.0M | 6.0M | N/A | 305M | 317M | 330M | 344M | 358M | 397M | 399M | 675M | 677M |
| Debt/Equity | 0.00 | 0.01 | 0.01 | 0.00 | 0.22 | 0.20 | 0.20 | 0.22 | 0.25 | 0.33 | 0.30 | 0.46 | 0.51 |
| Interest Coverage | 4605.5 | N/A | N/A | 1681.6 | -2.4 | 0.1 | -1.3 | -5.6 | -10.3 | -22.3 | -7.8 | 3.1 | 8.8 |
| Equity | 651M | 689M | 784M | 889M | 1.4B | 1.6B | 1.7B | 1.5B | 1.5B | 1.2B | 1.3B | 1.5B | 1.3B |
| Total Assets | 757M | 800M | 916M | 1.1B | 2.0B | 2.2B | 2.4B | 2.3B | 2.3B | 2.0B | 2.2B | 2.7B | 2.5B |
| Total Liabilities | 107M | 111M | 132M | 190M | 568M | 593M | 708M | 777M | 815M | 828M | 884M | 1.3B | 1.2B |
| Intangibles | 5.4M | 4.0M | 14M | 71M | 96M | 67M | 40M | 20M | 21M | 14M | 9.0M | 12M | 18M |
| Retained Earnings | 23M | 33M | 48M | 66M | 125M | 190M | 163M | -66M | -284M | -618M | -624M | -554M | -846M |
| Working Capital | 421M | 557M | 589M | 511M | 984M | 1.1B | 1.1B | 1.1B | 915M | 726M | 458M | 963M | 718M |
| Current Assets | 516M | 662M | 708M | 679M | 1.2B | 1.3B | 1.3B | 1.4B | 1.3B | 1.1B | 1.3B | 1.5B | 1.2B |
| Current Liabilities | 95M | 104M | 119M | 168M | 238M | 232M | 225M | 300M | 338M | 373M | 838M | 545M | 497M |
| Per Share Data | |||||||||||||
| EPS | 0.21 | 0.14 | 0.20 | 0.24 | -0.34 | 0.25 | -0.33 | -0.79 | -2.16 | -1.36 | -0.07 | 0.81 | 1.86 |
| Owner EPS | 0.27 | -0.09 | 0.14 | 0.58 | 0.27 | -0.10 | -0.30 | -0.64 | -2.77 | -1.87 | -0.19 | 1.34 | 0.99 |
| Book Value | 9.28 | 9.76 | 10.47 | 11.80 | 17.97 | 18.98 | 20.10 | 18.35 | 17.38 | 14.58 | 15.40 | 16.91 | 15.33 |
| Cash Flow/Share | 1.08 | 0.90 | 1.33 | 1.84 | 1.79 | 1.40 | 1.37 | 1.33 | -0.45 | 0.47 | 2.25 | 3.49 | 2.89 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 70.1M | 70.6M | 74.9M | 75.3M | 78.7M | 82.9M | 82.4M | 84.2M | 83.5M | 82.2M | 87.2M | 86.2M | 85.9M |
| Valuation | |||||||||||||
| P/E Ratio | 185.9 | 425.3 | 308.2 | 299.7 | N/A | 414.5 | N/A | N/A | N/A | N/A | N/A | 280.5 | 74.1 |
| P/FCF | 38.8 | 73.3 | 49.7 | 40.8 | 53.8 | 120.7 | 105.4 | 102.6 | N/A | 208.0 | 68.1 | 66.3 | 35.2 |
| EV/EBIT | N/A | N/A | N/A | 221.5 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 465.2 | 100.8 |
| Price/Book | 4.2 | 6.1 | 5.9 | 6.1 | 5.0 | 5.5 | 5.8 | 6.1 | 4.4 | 5.6 | 9.6 | 13.4 | 9.0 |
| Price/Sales | 9.0 | 9.3 | 9.9 | 8.8 | 9.8 | 10.9 | 11.6 | 12.6 | 10.3 | 6.4 | 9.6 | 13.8 | 8.4 |
| FCF Yield | 2.6% | 1.4% | 2.0% | 2.5% | 1.9% | 0.8% | 0.9% | 1.0% | -0.7% | 0.5% | 1.5% | 1.5% | 2.8% |
| Market Cap | 2.7B | 4.2B | 4.6B | 5.4B | 7.1B | 8.6B | 9.7B | 9.5B | 6.5B | 6.8B | 12.9B | 19.6B | 11.9B |
| Avg. Price | 45.01 | 49.97 | 56.26 | 59.65 | 81.52 | 94.39 | 104.39 | 111.36 | 100.25 | 70.57 | 108.06 | 193.04 | 138.23 |
| Year-End Price | 39.03 | 59.54 | 61.63 | 71.92 | 89.71 | 103.63 | 117.22 | 112.78 | 77.28 | 82.37 | 148.01 | 227.21 | 138.23 |
Guidewire Software, Inc. passes 3 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 41.1x vs a median of 53.8x. The company's 5-year average gross margin is 54.3%. At current prices, the estimated annualized return to fair value is +11.1%.
Guidewire Software, Inc. (GWRE) generated $295 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Guidewire Software, Inc. (GWRE) has a debt-to-equity ratio of 0.46. This indicates a conservatively financed balance sheet.
Guidewire Software, Inc. (GWRE) reported earnings per share (EPS) of $0.81 in its most recent fiscal year.
Guidewire Software, Inc. (GWRE) has a return on equity (ROE) of 5.0%. This indicates moderate shareholder returns.
Guidewire Software, Inc. (GWRE) has a 5-year average gross margin of 54.3%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 15 years of financial data for Guidewire Software, Inc. (GWRE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Guidewire Software, Inc. (GWRE) has a book value per share of $16.91, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued robust demand driven by insurers' need for modern, cloud-based core systems to support emerging capabilities including generative AI and agentic tools, with fully ramped ARR growth rates expected to outpace overall ARR growth into fiscal 2027 and beyond. The company is seeing larger deals with longer contract terms, reinforcing the durability of customer commitments and the strategic value of the platform; new product areas including ProNavigator and PricingCenter have exceeded initial expectations and are building pipeline momentum for future quarters. Management is leaning into field engineering and professional services programs to help customers maximize value from Guidewire Cloud Platform and leverage newer agentic capabilities, positioning the company to capture incremental services revenue and deepen customer relationships. The company expects to continue raising operating leverage through improved gross margins and disciplined expense management, while maintaining investment in product innovation, cloud infrastructure reliability, and security to meet Tier 1 insurance company expectations.
Based on recent SEC filings and earnings calls, Guidewire Software, Inc. (GWRE) has provided the following forward guidance: ARR: $1.229 billion–$1.237 billion (FY2026); Total Revenue: $1.46 billion–$1.47 billion (FY2026); Subscription and Support Revenue: $963 million–$969 million (FY2026); Services Revenue: approximately $270 million (FY2026); GAAP Operating Income: $124 million–$134 million (FY2026), plus 3 additional metrics.
Services Revenue (FY2026): “we now expect services revenue to be approximately $270 million”
GAAP Operating Income (FY2026): “We expect GAAP operating income of between $124 and $134 million”
Non-GAAP Operating Income (FY2026): “non-GAAP operating income of between $314 and $324 million for the fiscal year”
Cash Flow from Operations (FY2026): “We are raising our expectations for cash flow from operations for the year to be between $365 and $380 million”
CapEx (FY2026): “Our CapEx expectations for the year are between $30 and $35 million, including approximately $18 million in capitalized software development costs”