Guidewire Q2 rev beats, partly driven by subscription revenue growth

Guidewire Software

05/03/2026 21:21

Overview

Insurance software firm's fiscal Q2 revenue rose 24%, beating analyst expectations

Adjusted EPS for fiscal Q2 beat analyst expectations

Company had authorized new $500 mln share repurchase program

Outlook

Guidewire expects Q3 total revenue between $352 mln and $358 mln

Company forecasts fiscal year 2026 total revenue between $1,438 mln and $1,448 mln

Guidewire anticipates fiscal year 2026 operating cash flow between $360 mln and $375 mln

Result Drivers

AI IMPACT - AI is driving core system modernization and product development, contributing to revenue growth, per CEO Mike Rosenbaum

STRONG SALES MOMENTUM - ARR growth of 22% year-over-year reflects strong sales momentum, according to CFO Jeff Cooper

SUBSCRIPTION GROWTH - Subscription and support revenue increased 33%, driving overall revenue growth

Company press release: ID:nBw5hQg7wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$359.10 mln
$341.74 mln (14 Analysts)
Q2 Adjusted EPS
Beat
$1.17
$0.77 (14 Analysts)
Q2 EPS
$0.70
Q2 Adjusted Net Income
Beat
$100.70 mln
$66.81 mln (13 Analysts)
Q2 Net Income
$60.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Guidewire Software Inc is $249.00, about 61.9% above its March 4 closing price of $153.79

The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 66 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)