Guidewire Software Q4 net income falls on foreign currency loss

Guidewire Software

03/09/2026 21:22

Overview
Insurance software provider's Q4 revenue rose 15%, beating analyst expectations
Adjusted EPS and adjusted net income for Q4 beat analyst expectations
Company repurchased $606.3 mln in shares during fiscal 2026

Outlook
Guidewire sees Q1 2027 total revenue between $372 mln and $378 mln
Company expects FY 2027 total revenue between $1,707 mln and $1,727 mln
Guidewire forecasts FY 2027 operating cash flow between $445 mln and $465 mln

Result Drivers
SUBSCRIPTION GROWTH - Q4 subscription and support revenue rose 32%, which the company attributed to expanding demand for core and AI-focused products
LICENSE REVENUE DECLINE - License revenue fell 18% in Q4, with no specific explanation provided by the company
FOREIGN CURRENCY IMPACT - GAAP net income was negatively affected by a $24 mln foreign currency loss in Q4

Company press release: ID:nBw3Lblq0a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$411.10 mln
$402.21 mln (15 Analysts)
Q4 Adjusted EPS
Beat
$0.99
$0.94 (15 Analysts)
Q4 EPS
 
$0.38
 
Q4 Adjusted Net Income
Beat
$83.10 mln
$79.12 mln (15 Analysts)
Q4 Net Income
 
$31.40 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "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 $210.00, about 8.9% above its September 2 closing price of $192.76
The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 37 three months ago

Reuters Recommended Reads
Sept 2 - Snowflake lifts FY27 revenue guidance as AI offerings, core data platform strength boosts results 
Sept 1 - Dell raises FY27 revenue outlook by $25 billion on AI server momentum
Sept 1 - Palo Alto Networks Q4 revenue beats estimates on NGS ARR growth

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.)