Guidewire stock soars 7% on strong second-quarter performance

LootboxPhobia · 2026-03-05T22:05:39+00:00

Guidewire Software's second-quarter results exceeded expectations, with adjusted earnings of $1.17 per share and revenue reaching $359.1 million. The company raised its full-year revenue outlook due to increased demand for cloud software, expecting third-quarter revenue to be between $352 million and $358 million. The stock price rose by 7% as a result.

LootboxPhobia

2026-03-05 22:05:39

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San Mateo, California - Guidewire Software Inc. (NYSE: GWRE) reported second-quarter results that exceeded analyst expectations, driven by strong demand for cloud-based insurance software, leading to a 7% increase in stock price.

The company announced an adjusted second-quarter earnings per share of $1.17, compared to the consensus estimate of $0.77, beating by $0.40. Revenue reached $359.1 million, up 24% year-over-year from $289.5 million last year, and surpassing the consensus estimate of $342.76 million. As of January 31, 2026, annual recurring revenue grew 22% year-over-year to $1.121 billion.

“We delivered another excellent quarter, highlighted by consistent execution, strong growth, and sustained demand for large multi-year deals,” said CEO Mike Rosenbaum. “As AI drives modernization of core systems, accelerates product development, and increases engagement with customers and partners, our momentum continues to build.”

Subscription and support revenue rose 33% to $237.2 million, while services revenue increased 30% to $62.4 million. License revenue declined 7% year-over-year to $59.5 million.

For the third quarter, Guidewire expects revenue between $352 million and $358 million, with a midpoint of $355 million, above the analyst consensus of $339.9 million. The company raised its fiscal 2026 revenue guidance to $1.438 billion to $1.448 billion, though the midpoint of $1.443 billion is below the consensus estimate of $1.634 billion.

“We have raised our full-year outlook based on our better-than-expected second-quarter results and the continued strength of our business pipeline,” said CFO Jeff Cooper.

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