GWRE
Guidewire Software, Inc.193.59
-0.65-0.34%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q2 '26
Open AI strategy, strong add-on traction
Q&A reinforced Guidewire's AI openness, positioning core systems as the trusted backbone while partnering with OpenAI and Anthropic for additive value—no ownership ambitions. ProNavigator exceeded expectations with 9 deals; PricingCenter landed its first amid long-cycle pipeline buildup. True-ups delivered unexpected Q2 tailwind, persisting moderately. Churn fears dismissed: zero voluntary million-dollar losses in five years. Management stayed bullish on large, longer deals. ProNavigator crushed early targets. Investors watch AI integrations fueling cloud momentum.
Key Stats
Market Cap
16.46BP/E (TTM)
182.63Basic EPS (TTM)
1.06Dividend Yield
0%Recent Filings
10-Q
Q2 FY2026 results
Guidewire crushed Q2 FY2026, posting $359.1M total revenue, up 24% y/y, with subscription and support surging 33% y/y to $237.2M on cloud migrations and new deals; gross margin expanded to 64.4% from 61.9% (derived). Operating income hit $38.4M, up from $11.7M, while net income swung to $60.1M profit ($0.70 diluted EPS) versus a $37.3M loss, boosted by $27.0M other income. Cash fell to $407.9M after $33.3M ProNav acquisition (Nov 2025, $26.1M goodwill) and $148.2M buybacks, but $1.4B liquidity and $300M undrawn revolver remain solid; FCF was $28.3M (derived). EPS reconciles cleanly to 86.1M diluted shares. Lengthy sales cycles pose risks.
8-K
Q2 revenue up 24%
Guidewire crushed Q2 FY2026 with total revenue of $359.1M, up 24% year-over-year, driven by 33% subscription growth to $237.2M and ARR hitting $1,121M. GAAP operating income soared to $38.4M from $11.7M last year. Momentum builds. They raised full-year guidance across revenue, ARR, and profitability, yet cash dipped to $1,351.4M after buybacks.
8-K
Guidewire launches $500M buyback
Guidewire completed its September 2022 share repurchase program, exhausting the remaining $138.2 million, and launched a fresh $500.0 million authorization effective January 8, 2026. Backed by $1,409.3 million in cash, equivalents, and investments as of October 31, 2025, repurchases will flex with market conditions. New program signals confidence. Yet volatility risks actual execution.
8-K
Stockholders re-elect full board
Guidewire Software stockholders overwhelmingly elected its eight director nominees on December 15, 2025, at the annual meeting, with votes for ranging 73.2M to 74.8M amid 4.9M broker non-votes. They ratified KPMG LLP as auditors for fiscal 2026 with 79.4M for votes. Say-on-pay passed handily too. Board continuity locked in.
10-Q
Q1 FY2026 results
Guidewire swung to an operating profit of $18.5M in Q1 FY2026 ended October 31, 2025, up from a $4.7M loss y/y, as revenue jumped 27% to $333M on 31% subscription growth to $222M while gross margin expanded to 63% from 60%. Diluted EPS hit $0.36 on 86.5M shares, matching calculations. Cash dipped to $492M with $520M short-term investments, backing $690M convertible notes due 2029 at 1.25% (undrawn $300M revolver). ProNav acquisition closed November 7 for ~$34M cash. Lengthy sales cycles pose risks.
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