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Guidewire Software Inc. (GWRE)
NYSE:GWRE
Earnings Data
Report Date
Jun 09, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.74Last Year’s EPS
0.88Same Quarter Last Year
Strong Buy
Based on 11 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial momentum: high ARR and revenue growth (22% ARR, 24% revenue), expanding fully ramped ARR, a large RPO backlog (+63% YoY), excellent retention (>99%), notable enterprise customer wins/expansions, product traction (PricingCenter, data & analytics, ProNavigator) and raised full-year guidance. Key caveats include still-low services gross margins (though improving), backend ARR seasonality with Q4 weighting, moderating true-up tailwinds, longer sales cycles for some new products, and higher compensation-related expenses. Overall the positives materially outweigh the challenges.Company Guidance
Strong ARR Growth and Fully Ramped Momentum
ARR ended Q2 at $1.121 billion, up 22% year-over-year (21% on a constant currency basis). Fully ramped ARR finished the quarter at $1.42 billion and continues to grow faster than reported ARR, reflecting multiyear ramp dynamics and larger, longer-duration contract commitments.
Revenue Beat and Robust Margins
Total revenue was $359 million, up 24% year-over-year. Subscription and support revenue was $237 million, up 33% YoY. Gross profit was $243 million (+28% YoY) with overall gross margin of 68%. Subscription and support gross margin improved to 75% (from 69% a year ago).
Large Backlog and RPO Expansion
Remaining Performance Obligation (RPO) ended Q2 at $3.5 billion, representing 63% year-over-year growth, underscoring a sizable backlog and multi-year revenue visibility.
Customer Retention and Expansion Among Large Insurers
InsuranceSuite ARR retention (including downsell) was over 99% on a trailing 12-month basis. Customers with more than $5 million in fully ramped ARR grew from 35 in 2021 to 96 at the end of Q2. Notable wins/expansions include Aviva U.K. (long-term commitment to move all Guidewire estate), Tokio Marine North America, Donegal Insurance Group (migration + AI alignment), Zurich Germany, and a new major Canadian insurer with >$8 billion in direct written premium.
Product Momentum: Cloud Deals and AI Offerings
In Q2 Guidewire closed 15 InsuranceSuite Cloud deals and 2 InsuranceNow deals. The company closed its first PricingCenter deal, 25 deals that included data & analytics offerings, and ProNavigator (embedded AI) recorded 9 deals in the quarter and is trending ahead of initial expectations.
Services Demand and Execution
Services revenue was $62 million, up 30% year-over-year, driven by stronger-than-expected Guidewire-led services programs and increased field engineering activity to support cloud migrations and agentic capabilities.
Strengthened Financial Position & Capital Return
Cash, cash equivalents and investments exceeded $1.35 billion. Operating cash flow for the quarter was $112 million. The company repurchased $148 million of shares in the quarter and authorized a new $500 million buyback (approximately $490 million remaining).
Upgraded Full-Year Guidance
Guidewire raised FY26 targets: ARR guide to $1.229B–$1.237B (18%–19% YoY growth), total revenue guide to $1.438B–$1.448B (midpoint ~20% growth, up from a prior 17% assumption), subscription & support revenue guide to $962M–$966M, and non-GAAP operating income guide to $293M–$303M. Subscription & support gross margin expectation increased to ~74% for the year.
GWRE Earnings History
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.
Beat
Missed
GWRE Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 05, 2026 | $160.84 | $168.87 | +4.99% |
Dec 03, 2025 | $215.76 | $211.07 | -2.17% |
Sep 04, 2025 | $216.99 | $260.71 | +20.15% |
Jun 03, 2025 | $218.18 | $253.98 | +16.41% |
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.
FAQ
When does Guidewire Software Inc. (GWRE) report earnings?
Guidewire Software Inc. (GWRE) is schdueled to report earning on Jun 09, 2026, After Close (Confirmed).
What is Guidewire Software Inc. (GWRE) earnings time?
Guidewire Software Inc. (GWRE) earnings time is at Jun 09, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is GWRE EPS forecast?
GWRE EPS forecast for the fiscal quarter 2026 (Q3) is 0.74.
