Guidewire Software po zveřejnění výsledků prudce oslabil kvůli opatrnému výhledu po přechodu z licencí na cloudové předplatné. Tržby vzrostly o 15 %, cloud ARR o 35 %.
Guidewire Software’s NYSE: GWRE post-release stock plunge looks like a knee-jerk reaction that will soon correct.
Guidewire Software Today
GWRE
Guidewire Software
$162.48 +0.06 (+0.04%)
As of 09/4/2026 03:58 PM Eastern
$102.30▼
$272.6099.68
$216.23
The plunge was caused by tepid guidance linked to a strategic shift from legacy licensing models to cloud-based subscription models, which provide lower revenue but better margins. The downside is tepid topline growth, but what is sluggish growth in the face of wider margins other than an opportunity to improve both?
As it stands, the cloud transition underpins a robust outlook, and its near-term drag on revenue is widely seen as fading. The more critical story is what that transition is now producing: accelerating recurring-revenue growth and improving profitability.
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While adjusted net income grew only 300 basis points faster than revenue, it was impacted by increased investment, and operating income grew more substantially. Up 51.4% year over year (YOY), operating income points to ample cash flow and capital-return capacity over time.
Guidewire Outperforms, Issues Cautious GuidanceGuidewire had a solid quarter despite the impacts of its strategy shift. Revenue grew by 15%, outperforming by 200 basis points (bps), driven by a 32% increase in subscriptions and a 10% increase in services. Licensing, the legacy business, contracted 18% and is expected to continue declining in the upcoming quarters. Cloud annual recurring revenue (ARR), the measure of annual subscription-based sales, grew 35% to 84% of total ARR, providing visibility into future results. It suggests the cloud-based revenue growth will accelerate.
Margins were the sweet spot, up in all comparisons, leaving adjusted earnings at 99 cents, up 22% YOY and a nickel ahead of consensus. The only downside was the impact of capital expenditures (CapEx) and investments, which reduced bottom-line strength.
Cash flow is sufficient to sustain the fortress-like balance sheet while returning capital. Capital returns include aggressive share buybacks, which reduced the share count by 3% YOY as of fiscal Q4, and are expected to continue in future quarters.
The headwind today is that Q1 forecasts were below expectations, but a catalyst for share price recovery is already in play. Guidance is likely to be cautious, given the company’s cloud strengths and cues from other AI-enabled cloud-based software providers, collectively reflecting accelerating demand across the software ecosystem. In this scenario, the company could outperform in the next quarter, causing already-strong full-year guidance to be revised upward.
Analysts Respond With Caution, Outlook Remains BullishThe primary takeaway from analysts' responses to the release was caution centered on the tepid revenue outlook. No downgrades were issued, but numerous price targets were reduced, limiting the upside potential but reinforcing the consensus. Consensus, as reported by MarketBeat, is pegged in the low $220s, indicating a 10% upside relative to the pre-release close and closer to 35% following the release. GWRE stock is likely to remain under pressure over the coming months, without a significant catalyst for a rebound until the Q1 results are released.
Technically, GWRE stock is in the midst of a major reversal, and the post-release plunge aligns with that trend. Price action moved to fresh long-term highs earlier this year, breaking above several resistance targets, including a cluster of moving averages that now form a Golden Cross. As of early September, the story is that GWRE’s market has retreated to the pivot point to retest support, and it is likely to hold.
Institutional activity was bullish ahead of the release and is likely to remain so afterward. Although selling capped gains earlier in the year, the group reverted to an accumulative posture in early Q3, helping drive the stock price through its resistance targets. The likely outcome is that this group buys the dip, potentially accelerating accumulation because of the steep discount.
High-Valuation Versus Deep Moat and VisibilityGuidewire’s biggest risk is its valuation. The stock traded at about 50x earnings ahead of the report, setting the stage for execution-related stock price volatility, which the weak guidance triggered. Investors are getting it wrong, however. Near-term headwinds are easing, and the long-term outlook includes improving margins, cash flow, and capital return, driven by the company's ever-deepening moat.
Guidewire is a mission-critical software layer for insurance companies globally, providing the operating systems for over 500 insurers and counting. It is indispensable to their operations and incredibly costly to change, as it affects 100% of their business. A clear sign of strength is the nearly 100% retention rate, signaling that once onboarded, an insurer is a customer for life. Within that, the company has an unseen growth driver tied to insurance inflation; Guidewire's network earns a toll as inflation costs increase and natural disasters drive activity.
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Guidewire Software, Inc. (GWRE) Q4 2026 Earnings Call September 3, 2026 5:00 PM EDT
Company Participants
Alex Hughes - Vice President of Investor Relations
Mike Rosenbaum - CEO & Director
John Mullen - President
Jeffrey Cooper - Chief Financial Officer
Conference Call Participants
Alexei Gogolev - JPMorgan Chase & Co, Research Division
Rishi Jaluria - RBC Capital Markets, Research Division
Joseph Vruwink - Robert W. Baird & Co. Incorporated, Research Division
Dylan Becker - William Blair & Company L.L.C., Research Division
Hoi-Fung Wong - Oppenheimer & Co. Inc., Research Division
J. Lane - Stifel, Nicolaus & Company, Incorporated, Research Division
Allan M. Verkhovski - BTIG, LLC, Research Division
Tamjid Md Moinuddin Chowdhury - Guggenheim Securities, LLC, Research Division
Michael Turrin - Wells Fargo Securities, LLC, Research Division
William Fitzsimmons - Piper Sandler & Co., Research Division
Aaron Kimson - Citizens JMP Securities, LLC, Research Division
Presentation
Operator
Greetings, and welcome to the Guidewire Fourth Quarter Fiscal 2026 Financial Results Conference Call. As a reminder, this call is being recorded and will be posted on our Investor Relations page later today. I would now like to turn the call over to Alex Hughes, Vice President of Investor Relations. Thank you. Alex, you may begin.
Alex Hughes
Vice President of Investor Relations
Thank you, Grace. Hello, everyone. With me today is Mike Rosenbaum, Chief Executive Officer; John Mullen, President; and Jeff Cooper, Chief Financial Officer. Complete disclosure of our results can be found in our press release issued today as well as in our related Form 8-K furnished to the SEC, both of which are available on the Investor Relations section of our website. We have also posted our fourth quarter earnings deck on our IR section of the website. Today's call is being recorded.
A replay will be available following its conclusion. Statements today include forward-looking ones regarding our financial outlook, our cloud and
Guidewire Software oznámila zisk 0,99 USD na akcii a tržby 411,09 milionu USD za čtvrtletí končící v červenci 2026, obojí nad odhady. Zisk i tržby meziročně vzrostly.
Guidewire Software (GWRE - Free Report) came out with quarterly earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.32%. A quarter ago, it was expected that this provider of software to the insurance industry would post earnings of $0.79 per share when it actually produced earnings of $0.82, delivering a surprise of +3.8%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Guidewire Software, which belongs to the Zacks Internet - Software industry, posted revenues of $411.09 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 2.20%. This compares to year-ago revenues of $356.57 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Guidewire Software shares have lost about 4.1% since the beginning of the year versus the S&P 500's gain of 12%.
What's Next for Guidewire Software?While Guidewire Software has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Guidewire Software was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $381.97 million in revenues for the coming quarter and $4.07 on $1.68 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Oddity Tech (ODD - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on September 9.
This online retailer of cosmetics and beauty products is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -87%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Oddity Tech's revenues are expected to be $174.8 million, down 27.5% from the year-ago quarter.
Guidewire Software uzavřela fiskální rok 2026 s ročními opakujícími se příjmy (ARR) ve výši 1,242 miliardy USD, tedy nad odhadem, díky migracím do cloudu a silné poptávce po AI a cloudových cenových produktech. Cloud ARR vzrostl meziročně o 35 % a tvořil 84 % celkového ARR.
Looking Beyond CrowdStrike? 3 AI Security Stocks Stand OutGuidewire Software NYSE: GWRE closed fiscal 2026 with annual recurring revenue, or ARR, above its guidance range, supported by cloud migrations, low customer attrition and demand for newer artificial intelligence and pricing products.
Chief Executive Officer Mike Rosenbaum said ARR ended the fiscal year at $1.242 billion, up 19% year over year on a constant-currency basis. After a $5 million foreign-exchange adjustment at year-end, ARR was $1.237 billion, Chief Financial Officer Jeff Cooper said. Fully ramped ARR, which reflects the annualized value of customer contracts once fully deployed, rose 22% on a constant-currency basis.
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Guidewire’s Buyback Could Be the Clue the Sell-Off Is EndingThe company reported 26 core deals in the fourth quarter and 62 for the full fiscal year, covering PolicyCenter, ClaimCenter, BillingCenter or InsuranceNow. Guidewire’s cloud ARR grew 35% year over year and represented 84% of total ARR, Cooper said.
Nationwide migration and product expansion A key fourth-quarter agreement came from Nationwide, which signed a multiyear deal to move its full InsuranceSuite estate to Guidewire Cloud Platform. Nationwide also selected PricingCenter for personal-lines pricing and rating, becoming Guidewire’s first U.S. tier-one PricingCenter customer, according to the company.
Down 20%+, These 3 Software Stocks Are Boosting BuybacksRosenbaum said the Nationwide relationship, which spans more than a decade, validates Guidewire’s ability to support large insurers in the cloud. He added that the PricingCenter deployment is expected to test the product’s capability and scale for other tier-one insurers.
Guidewire closed eight PricingCenter deals during the fourth quarter and 12 for the full year. Other customers selecting or expanding PricingCenter included Capital Insurance Group, Shelter Insurance and Achmea Farm Insurance in Australia. A longstanding customer in Finland became the company’s first existing InsuranceSuite customer in Europe to adopt the product.
President John Mullen said the pricing market is fragmented, with insurers generally using multiple established rating and pricing tools rather than internally developed systems. He said PricingCenter’s integration with PolicyCenter, Advanced Product Designer and Guidewire’s data platform is intended to help insurers make pricing changes more quickly and accurately.
AI products gain commercial traction Guidewire also highlighted early demand for ProNavigator, an AI-driven assistance product embedded in ClaimCenter and PolicyCenter workflows. The company recorded 14 ProNavigator wins in the fourth quarter and 28 for the full year.
Customers adopting ProNavigator included MAPFRE US, Definity, Alfa Insurance and Hollard in Australia. Mullen said customers are using the product for insurance-domain AI capabilities, claims and adjuster experiences, and as an alternative to internally developed tools.
Rosenbaum said ProNavigator’s early momentum was primarily from cross-selling into Guidewire’s installed base. Over time, he said, the product could differentiate Guidewire’s core systems in new customer opportunities, rather than necessarily serving as a standalone entry point.
The company also said developer assistants are now available to customers and partners, while its Qusar release introduced an agentic platform designed to let insurers build AI agents tailored to their existing Guidewire implementations and workflows. Management emphasized that Guidewire intends to support open architectures and integrations with third-party AI systems, while positioning its core platform as a source of structured insurance data and operational context.
Fiscal 2026 revenue, profits and cash flow For fiscal 2026, Guidewire reported total revenue of $1.475 billion, up 23% year over year. Subscription revenue rose 37% to $916 million, while subscription and support revenue increased 33% to $971 million. License revenue declined 7% to $235 million as customers continued transitioning from term licenses to cloud subscriptions. Services revenue increased 23% to $270 million.
Non-GAAP gross profit rose 25% to $990 million, with an overall gross margin of 67%. Subscription and support gross margin expanded four percentage points to 74.5%. Non-GAAP operating income increased 63% to $340 million. Operating cash flow grew 30% to $390 million. Guidewire ended the period with $1.2 billion in cash equivalents and investments. The company repurchased $606 million of stock during fiscal 2026, representing 4.1 million shares at an average price of $148.41 per share. Rosenbaum also pointed to gross ARR attrition of less than 1.5% across all ARR and less than 1% among core-systems customers.
Cooper said Guidewire had 105 customers with fully ramped ARR above $5 million at fiscal year-end, compared with 86 at the end of fiscal 2025.
Fiscal 2027 outlook For fiscal 2027, Guidewire forecast ARR of $1.45 billion to $1.46 billion, representing 18% constant-currency growth at the midpoint. More than half of the net new ARR included in the outlook is already under contract with defined ramp dates, Cooper said.
The company expects total revenue of $1.707 billion to $1.727 billion, including subscription and support revenue of $1.240 billion to $1.246 billion. Guidewire expects license revenue of about $189 million and services revenue of about $285 million.
Guidewire forecast non-GAAP operating income of $403 million to $423 million, GAAP operating income of $197 million to $217 million, and operating cash flow of $445 million to $465 million. It expects subscription and support gross margin of 75% to 76% and total gross margin of 67% to 68%.
For the first quarter, the company projected ARR of $1.253 billion to $1.259 billion and subscription and support revenue of $279 million to $283 million. Cooper said first-quarter subscription and support margin should be about 77%, aided by roughly $4 million in cloud-infrastructure-provider credits, while services margin is expected to be around break-even due in part to the timing of fixed-fee services engagements.
Cooper also said Chief Accounting Officer David Pedersen plans to retire in early November.
About Guidewire Software (NYSE:GWRE)Guidewire Software, Inc develops software products and cloud services for property and casualty (P&C) insurance carriers. Headquartered in San Mateo, California, the company's offerings are designed to help insurers manage the core functions of their business—policy administration, billing and claims—while supporting digital engagement, analytics and operational modernization.
Guidewire's core product portfolio is commonly known as the InsuranceSuite, which includes PolicyCenter for policy administration, BillingCenter for billing and receivables, and ClaimCenter for claims management.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Should You Invest $1,000 in Guidewire Software Right Now?Before you consider Guidewire Software, you'll want to hear this.
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While Guidewire Software currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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Guidewire Software čeká za čtvrtletí zisk na akcii 0,94 USD a tržby 402,23 milionu USD, což je meziročně o 11,9 % a 12,8 % více. Konsensus EPS byl za 30 dní snížen o 0,4 %.
The upcoming report from Guidewire Software (GWRE - Free Report) is expected to reveal quarterly earnings of $0.94 per share, indicating an increase of 11.9% compared to the year-ago period. Analysts forecast revenues of $402.23 million, representing an increase of 12.8% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some Guidewire Software metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts expect 'Revenue- Subscription and support' to come in at $262.88 million. The estimate indicates a year-over-year change of +30.2%.
It is projected by analysts that the 'Revenue- License' will reach $72.90 million. The estimate suggests a change of -22.2% year over year.
The consensus among analysts is that 'Revenue- Services' will reach $66.68 million. The estimate indicates a change of +9.2% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenue- Subscription and support- Subscription' should come in at $249.31 million. The estimate indicates a change of +33.7% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenue- Subscription and support- Support' of $13.56 million. The estimate indicates a change of -12.2% from the prior-year quarter.
Analysts forecast 'Annual recurring revenue' to reach $1.23 billion. Compared to the present estimate, the company reported $1.04 billion in the same quarter last year.
The combined assessment of analysts suggests that 'Gross profit- License' will likely reach $72.11 million. Compared to the present estimate, the company reported $92.73 million in the same quarter last year.
The average prediction of analysts places 'Gross profit- Subscription and support' at $188.56 million. The estimate is in contrast to the year-ago figure of $137.32 million.
View all Key Company Metrics for Guidewire Software here>>>
Over the past month, shares of Guidewire Software have returned +35.5% versus the Zacks S&P 500 composite's +3.9% change. Currently, GWRE carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Guidewire v nové verzi Qusar představil Agentic Framework pro pojišťovny, který umožňuje budovat a řídit AI agenty na platformě Guidewire Cloud Platform. Developer Assistants mají zrychlit vývoj o více než 40 % oproti generickým kódovacím asistentům.
Qusar includes Guidewire-built claims and underwriting agents, plus Developer Assistants that help developers ship features more than 40% faster than with generic coding assistants
, /PRNewswire/ -- Guidewire (NYSE: GWRE) today launched the Agentic Framework in its new Qusar release, enabling insurers to build, deploy, and manage AI agents on Guidewire Cloud Platform. The framework delivers value grounded in Guidewire's deep insurance context across the functions that matter most to the business throughout the insurance lifecycle. Paired with new capabilities across Guidewire's application portfolio, the Agentic Framework empowers carriers to protect indemnity margins, and elevate underwriting decisions, giving them the operational speed and precision to compete with confidence.
Qusar introduces the Agentic Framework, along with Guidewire-built Claims and Underwriting Agents and Developer Assistants purpose-built for Guidewire developers. The Agentic Framework enables insurance carriers to choose the right AI model for each task and provides AI agents with secure, real-time access to policy, claims, and billing data and workflows. This allows complex, multi-step processes to run automatically, so decisions that once took days can happen in minutes.
"Insurers are increasingly recognizing that AI value comes from deep integration with core business processes, not from isolated experimentation," said Karlyn Carnahan, Executive Partner, Celent. "Agentic Framework addresses this directly by letting insurers deploy AI within their existing systems and workflows while maintaining operational control and compliance."
Qusar also introduces Guidewire-developed agents designed for specific insurance workflows.
Claim Summarization for ProNavigator**: Provides adjusters claim summaries, allowing them to focus on complex resolutions instead of manual note review Policy Change for ProNavigator*: Serves as an embedded assistant that helps underwriters and customer service representatives complete policy changes faster, leading to quicker turnaround and improved quote-to-bind ratios Agentic First Notice of Loss (FNOL)**: Guides claimants through the first notice of loss using conversational AI voice, capturing key claim details to improve the customer experience "Guidewire AI innovations are helping us transform how we support our teams and serve our members," said Garrett Anderson, Chief Information Officer, Automobile Club of Southern California. "By using AI to summarize claims and streamline key insurance workflows, we're improving efficiency, helping our adjusters focus on higher-value work, and creating a stronger foundation for future innovation."
Qusar also introduces Guidewire Developer and Builder Assistants that understand the Guidewire code base, programming languages, design patterns, and configurations. For application development, Developer Assistants streamline work across Gosu (Java-compatible Guidewire programming language), Integrations, Jutro (Guidewire digital platform), and Functions (serverless extensions)*. For data and product work, Data Curation Assistant for Data Studio* converts plain language into precise SQL, while Product Design Assistant for Advanced Product Designer (APD)* helps automate insurance product configuration.
"By building the Agentic Framework directly into Guidewire Cloud Platform, we are giving developers and AI builders the tools to engineer and safely deploy insurance-aware AI agents into their daily operations," said Diego Devalle, Chief Product Development Officer, Guidewire. "Additionally, Developer Assistants help teams deliver solutions more than 40% faster than generic coding assistants*** by combining AI capabilities with the deep contextual knowledge embodied in our platform. Our customers and partners are already seeing the tangible benefits, using these tools to quickly build and deploy AI agents that support both developers and business users."
For more detailed information, please visit the Qusar webpage and the Qusar release blog.
Certain release features may not be available in all regions.
*
Indicates product feature is available for Early Access customers only.
**
Indicates product feature is available for Restricted Availability customers only.
***
Based on Guidewire internal productivity benchmarks comparing Guidewire Developer Assistants to generic coding assistants across standard configuration tasks.
About Guidewire
Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. More than 570 insurers in 43 countries, from new ventures to the largest and most complex in the world, rely on Guidewire products. With core systems leveraging data and analytics, digital, and artificial intelligence, Guidewire defines cloud platform excellence for P&C insurers.
We are proud of our unparalleled implementation record, with 1,700+ successful projects supported by the industry's largest R&D team and SI partner ecosystem. Our marketplace represents the largest partner community in P&C, where customers can access hundreds of applications to accelerate integration, localization, and innovation.
For more information, please visit www.guidewire.com and follow us on X and LinkedIn.
MEDIA CONTACT: Melissa Cobb, Director, Public Relations Guidewire Software, Inc. +1.650.464.1177, [email protected]
NOTE: For information about Guidewire trademarks, visit www.guidewire.com/legal-notices.
Cautionary Language Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the general availability of features, programs, services, and tools related to Qusar mentioned in this press release (including, without limitation, Agentic Framework, Developer Assistants, and Agentic FNOL). These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as expect, anticipate, should, believe, hope, target, project, goals, estimate, potential, predict, may, will, might, could, intend, variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Guidewire's control. Guidewire's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Guidewire's most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission as well as other documents that may be filed by Guidewire from time to time with the Securities and Exchange Commission. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: quarterly and annual operating results may fluctuate more than expected; seasonal and other variations related to our customer agreements and related revenue recognition may cause significant fluctuations in our results of operations, Annual Recurring Revenue (ARR), and cash flows; our reliance on sales to and renewals from a relatively small number of large customers for a substantial portion of our revenue and ARR; our making long-term pricing commitments in our customer contracts based on available information and estimates about our future costs that may change; our ability to successfully manage our business model, including achieving market acceptance of our cloud-based services and products and the costs related to cloud operations, cybersecurity, product development, and services; the timing, success, and number of professional services engagements and the billing rates and utilization of our professional services employees and contractors; the impact of global events (including, without limitation, ongoing global conflicts, inflation, high interest rates, economic volatility, bank failures and associated financial instability, and supply chain issues) on our employees, our business, and the businesses of our customers, system integrator (SI) partners, and vendors; data security breaches of our cloud-based services and products or unauthorized access to our employees' or our customers' data; our competitive environment and changes thereto; issues in the development and use of artificial intelligence and machine learning combined with an uncertain regulatory environment; use of AI by our workforce may present risks to our business; errors or failures in our products or services, as well as service interruptions or failure of the third-party service providers we rely on; our services revenue produces lower gross margins than our license, subscription and support revenue; our product development and sales cycles are lengthy and may be affected by factors outside of our control; the impact of new regulations and laws (including, without limitation, security, privacy, artificial intelligence and machine learning, tax regulations and laws, and accounting standards); assertions by third parties that we violate their intellectual property rights; weakened global economic conditions may adversely affect the P&C insurance industry, including the rate of information technology spending; our ability to sell our services and products is highly dependent on the quality of our professional services and SI partners; the risk of losing key employees; the challenges of international operations, including changes in foreign exchange rates; and other risks and uncertainties. Past performance is not indicative of future results. The forward-looking statements included in this press release represent Guidewire's views as of the date of this press release. Guidewire anticipates that subsequent events and developments will cause its views to change. Guidewire undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Guidewire's views as of any date subsequent to the date of this press release.
CEO Guidewire Software Michael George Rosenbaum prodal 1 200 akcií za 166 164 USD v rámci předem připraveného plánu 10b5-1. Po transakci drží téměř 195 000 akcií.
Michael George Rosenbaum, the chief executive officer of Guidewire Software, Inc. (GWRE +0.28%), sold 1,200 shares of common stock at $138.47 per share on July 13, 2026, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$166,164Shares sold1,200Post-transaction shares (directly held)~195,000Post-transaction value$27.36 millionTransaction value based on SEC Form 4 weighted average sale price ($138.47); post-transaction value based on July 13, 2026 market close ($140.31).
Key questionsWhat was the regulatory basis for this transaction?
The sale was conducted under a Rule 10b5-1 trading plan established by Michael George Rosenbaum on October 14, 2025. These plans allow corporate insiders to schedule share sales in advance to meet liquidity needs while maintaining compliance with insider trading regulations.How significant is the insider's remaining direct equity position?
Following this transaction, the Chief Executive Officer continues to hold nearly 195,000 shares of common stock directly. This position is valued at $27.36 million based on the market close price of $140.31 on July 13, 2026.What are the core business operations of Guidewire Software?
Guidewire Software serves as a global provider of software solutions for the property and casualty insurance industry, offering platforms such as InsuranceSuite and InsuranceNow to manage core operations, including policies, billing, and claims.What is the company's recent financial performance?
Guidewire Software reported trailing twelve-month revenue of $1.4 billion and net income of $159.8 million. The company currently maintains a market capitalization of $11.3 billion as of the July 10 market close.Company OverviewMetricValueShare Price (as of market close 2026-07-10)$136.13Market Capitalization$11.3 billionRevenue (TTM)$1.4 billionNet Income (TTM)$159.8 millionCompany SnapshotGuidewire Software provides comprehensive software solutions for the property and casualty insurance industry, with primary offerings including Guidewire InsuranceSuite (featuring PolicyCenter, BillingCenter, and ClaimCenter applications) and Guidewire InsuranceNow, a cloud-native platform for integrated policy, billing, and claims administration.The company operates a subscription and SaaS-based business model, generating revenue through software licensing, cloud services, and professional services engagements that support implementation and customization of its platforms for client insurers.Guidewire's primary customers are property and casualty insurance carriers of varying sizes, ranging from regional and mid-market insurers to large national and international insurance enterprises seeking to modernize their core operational systems.Guidewire Software is a market-leading provider of digital transformation solutions for the global insurance industry, with a market capitalization of $11.3 billion and TTM revenue of $1.4 billion. The company maintains a competitive advantage through its specialized expertise in insurance-specific workflows and its comprehensive, integrated platform approach that addresses the full spectrum of policy, billing, and claims operations. Guidewire's strategic positioning in the high-growth insurance software market reflects strong demand for cloud-based, modernized systems among insurers navigating digital transformation imperatives.
What this transaction means for investorsRosenbaum parted with 1,200 shares under a plan he set in October while still holding nearly 195,000 shares worth about $27 million. That's a trim of well under 1% and the kind of scheduled liquidity a CEO takes without it saying anything about the business. He’s been making such small sales on a roughly weekly basis for the past few months, but unless the selling intensifies, it doesn’t really signal too much.
Meanwhile, Guidewire has been performing solidly despite a steep 37% decline in its stock price over the past year, as many firms in the software space deal with increased investor scrutiny over ARR growth and guidance. The firm’s fiscal third-quarter revenue jumped 27% to $373 million, annual recurring revenue climbed 19% to $1.147 billion, and subscription revenue grew 35% as insurers kept migrating their core systems to its cloud. The company landed cloud wins in the quarter and raised its full-year revenue outlook to as high as $1.47 billion. On the earnings call, Rosenbaum told investors "it could be a record Q4” but investors are clearly hoping for more.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Key Takeaways Guidewire benefits as P&C insurers modernize legacy systems and shift core workflows to cloud.GWRE closed 11 cloud deals in Q3 fiscal 2026, including two net-new core system wins.ProNavigator and PricingCenter gained traction, but services mix and execution remain in focus. Guidewire Software, Inc. (GWRE - Free Report) is benefiting from insurer modernization, cloud migration and broader AI adoption across the property and casualty insurance market.
The story is not one-sided. Subscription-led growth is improving the model, but implementation intensity, services mix and execution demands still shape the stock’s risk-reward balance.
Why Guidewire Benefits From Insurer ModernizationP&C insurers continue to move away from legacy systems and toward cloud-based platforms that can support policy, billing, claims, pricing and underwriting workflows. Guidewire sits directly in that shift, with its cloud platform positioned as a core operating system for insurers.
In third-quarter fiscal 2026, Guidewire closed 11 cloud deals, including two net-new core system wins. The wins included a seven-year expansion with Auto Club of Southern California, a strategic net-new cloud win with Bradesco Seguros in Brazil, a U.K. ClaimCenter selection and a PolicyCenter win at a large U.S. insurer.
SAP SE (SAP - Free Report) remains relevant in the broader enterprise software market and is listed among Guidewire’s competitive landscape in software serving P&C insurers. Oracle Corporation (ORCL - Free Report) , with its cloud applications and platform services, is another useful reference point for investors tracking enterprise cloud migration across regulated industries.
How GWRE Is Building AI Into Daily WorkflowsGuidewire’s AI push is becoming more practical through ProNavigator. The company completed five ProNavigator deals in the third quarter as insurers looked to embed AI-driven knowledge and workflow automation into core operations.
The product is designed to provide role-specific, secure and context-aware AI guidance for underwriters, claims adjusters, billing specialists and customer service representatives. That matters because it extends Guidewire’s relevance beyond system replacement and into daily decision support.
AI is also influencing implementation work. Management has cited productivity gains from agentic development tools, which could help reduce friction in cloud migrations and speed delivery over time.
Where Guidewire’s Services Trend Cuts Both WaysServices revenue rose 32% year over year to $71.8 million in the third quarter. That growth reflects demand for Guidewire-led services programs, field engineering work and support for customers using Guidewire Cloud Platform.
The trade-off is margin mix. Services carried a non-GAAP gross margin of 14.3% in the quarter, compared with 74.1% for subscription and support. Higher services demand can signal healthy implementation activity, but it can also dilute the benefits of subscription-led growth.
For fiscal 2026, Guidewire expects services revenues of about $270 million and services gross margin of about 14%. A larger services revenue mix and higher bonus accrual partially offset the benefit from raised revenue expectations.
What Pricing Tools Mean for Guidewire’s Next PhasePricingCenter gives Guidewire another route into data-driven insurance workflows. The solution helps P&C insurers update pricing, analyze impacts in real time and respond to market changes.
Guidewire closed three PricingCenter wins in the third quarter, including deals with insurers in Sweden and Poland and its first U.S. win at Oklahoma Farm Bureau. The early traction supports the view that Guidewire can expand deeper into pricing and product teams.
Still, newer products must scale efficiently. PricingCenter and ProNavigator broaden the platform opportunity, but the company still needs to prove that adoption can grow without adding delivery complexity or weakening unit economics.
How Zacks Signals Reflect GWRE’s Trend BalanceGuidewire’s growth story is becoming broader, but not simpler. Cloud migrations remain the main engine, while ProNavigator and PricingCenter add new ways for insurers to use Guidewire inside daily workflows. At the same time, the rise in services demand shows that modernization still requires meaningful implementation support, keeping margin mix and execution discipline in focus.
GWRE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock also has a Value Score of F, Growth Score of B, Momentum Score of F and VGM Score of D. The Growth Score of B fits a company delivering double-digit ARR and subscription growth, but the weaker Value, Momentum and VGM readings point to a less favorable overall style profile.
For investors, that combination supports a measured view: Guidewire is participating in durable insurance technology trends, but the stock still needs cleaner evidence that newer products, cloud scale and services demand can translate into more efficient long-term growth.
