Guidewire Software Q3 results beat estimates on strong AI adoption

Guidewire Software

04/06/2026 21:13

Overview
U.S. insurance software firm's fiscal Q3 revenue rose 27%, beating analyst expectations
Adjusted EPS for fiscal Q3 beat analyst expectations
Company repurchased $250 mln of stock during the quarter under its buyback program

Outlook
Guidewire raises FY26 outlook for revenue, operating income, and cash flow
Company sees Q4 revenue between $396 mln and $406 mln
Guidewire expects FY26 revenue between $1.46 bln and $1.47 bln

Result Drivers
SUBSCRIPTION AND SUPPORT GROWTH - Subscription and support revenue grew 35% year-over-year, driving overall revenue growth
CLOUD PLATFORM AND AI ADOPTION - Co said demand was driven by insurers modernizing core systems, migrating to cloud solutions, and adopting AI across applications, per CEO Mike Rosenbaum
BROAD-BASED CUSTOMER WINS - Co cited pace of wins across products, regions, and customer sizes as reinforcing growth and business model durability, per CFO Jeff Cooper

Company press release: ID:nBw6Nb1S6a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$372.50 mln
$355.95 mln (14 Analysts)
Q3 Adjusted EPS
Beat
$0.82
$0.74 (14 Analysts)
Q3 EPS
 
$0.19
 
Q3 Adjusted Net Income
Beat
$69.60 mln
$64.58 mln (13 Analysts)
Q3 Net Income
 
$16.50 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 no "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 $216.72, about 39.8% above its June 3 closing price of $155.01
The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 42 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.)