Insurance software seller Guidewire Q4 revenue up 22%, beats estimates

Guidewire Software

04/09/2025 21:28

Overview

Guidewire Q4 revenue rises 22%, beating analyst expectations, per LSEG data

Adjusted EPS for Q4 beats estimates, reflecting improved operational performance

ARR surpasses $1 bln, driven by strategic cloud deals and major insurer agreement

Outlook

Guidewire expects Q1 2026 revenue between $315 mln and $321 mln

Guidewire projects FY 2026 revenue between $1.385 bln and $1.405 bln

Guidewire forecasts FY 2026 operating income between $68 mln and $88 mln

Guidewire anticipates FY 2026 operating cash flow between $350 mln and $370 mln

Result Drivers

CLOUD DEALS - Executed 19 cloud deals in Q4, contributing to surpassing $1 bln in ARR, per CEO Mike Rosenbaum

MAJOR INSURER AGREEMENT - Significant 10-year deal with a Tier-1 insurer highlighted as a driver of increased deal sizes

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$356.60 mln
$337.90 mln (14 Analysts)
Q4 Adjusted EPS
Beat
$0.84
$0.63 (14 Analysts)
Q4 EPS
$0.6
Q4 Adjusted Net Income
Beat
$72.10 mln
$54.60 mln (13 Analysts)
Q4 Net Income
$52 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 3 "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 $267.50, about 18% above its September 3 closing price of $219.25

The stock recently traded at 78 times the next 12-month earnings vs. a P/E of 84 three months ago

Press Release: ID:nBw5BShpsa

(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.)