Guidewire Software, Inc. reported a highly successful third quarter with record sales activity, strong ARR growth, and significant international expansion. The company demonstrated robust financial performance and strategic positioning, especially in their cloud transformation. However, there is a noted dependency on Q4 for achieving fully ramped ARR goals, and potential challenges in the Japanese regulatory environment were not fully addressed.

Company Guidance

In the third quarter of fiscal year 2025, Guidewire Software, Inc. demonstrated strong performance and significant momentum, highlighted by a record Q3 in sales activity, marking the third-best quarter in the company's history. The company closed 17 cloud deals, contributing to an annual recurring revenue (ARR) of $960 million, prompting a raised full-year outlook with an expectation to exceed $1 billion in ARR. Total revenue for the quarter was $294 million, up 22% year-over-year, with subscription and support revenue growing 32% to $182 million. The subscription and support gross margin improved to 71%, compared to 66% the previous year. Operating profit reached $46 million, with cash flow from operations at $32 million, surpassing expectations. Guidewire also raised its fiscal 2025 ARR outlook to $1.012 billion to $1.022 billion, reflecting 17% to 18% growth year-over-year, and expects total revenue for the fiscal year to be between $1.178 billion and $1.186 billion. The company anticipates subscription and support gross margins to be between 69-70% for the year.

Record Q3 Sales Activity

Guidewire had a record Q3, marking it as the third-best quarter in their history. They closed 17 cloud deals, including 14 for InsuranceSuite applications and three for InsuranceNow, with notable strength in the high-end market.

ARR Growth and Outlook

Annual Recurring Revenue (ARR) reached $960 million, leading Guidewire to raise their full-year outlook, now anticipating exceeding $1 billion in ARR.

International Expansion

Significant cloud expansion in Canada and successful cloud wins in APAC and EMEA regions, including a major investment in the Japanese market.

InsuranceNow and Industry Intelligence

Closed three net new InsuranceNow wins, including the largest ever on this product. Also secured the first Guidewire Industry Intelligence sale, a new predictive model embedded into the claim center workflow.

Strong Financial Performance

Total revenue was $294 million, up 22% year-over-year. Subscription and support revenue grew 32% year-over-year.

Guidewire (GWRE) Earnings, Revenues Date & History

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GWRE Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Sep 04, 2025	2025 (Q4)	0.63 / -	0.62	―	―	―
Jun 03, 2025	2025 (Q3)	0.46 / 0.88	0.26	238.46% (+0.62)	―
Mar 06, 2025	2025 (Q2)	0.52 / 0.51	0.46	10.87% (+0.05)	―
Dec 05, 2024	2025 (Q1)	0.30 / 0.43	0	―	―
Sep 05, 2024	2024 (Q4)	0.54 / 0.62	0.74	-16.22% (-0.12)	―
Jun 04, 2024	2024 (Q3)	0.13 / 0.26	-0.08	425.00% (+0.34)	―
Mar 07, 2024	2024 (Q2)	0.23 / 0.46	-0.21	319.05% (+0.67)	―
Dec 07, 2023	2024 (Q1)	-0.16 / 0.00	-0.12	―	―
Sep 07, 2023	2023 (Q4)	0.38 / 0.74	0.03	2366.67% (+0.71)	―
Jun 01, 2023	2023 (Q3)	-0.14 / -0.08	-0.26	69.23% (+0.18)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

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Missed

GWRE Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jun 03, 2025	$218.18	$253.98	+16.41%
Mar 06, 2025	$186.98	$173.24	-7.35%
Dec 05, 2024	$206.57	$177.57	-14.04%
Sep 05, 2024	$143.93	$161.72	+12.36%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.