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