How did GWRE's Q3 2025 EPS forecast compare to past trends?
4/6/2025 06:26pm
**Guidewire Software Inc (GWRE) is poised to report its third-quarter (Q3) 2025 earnings per share (EPS) of $0.47, which is a reflection of its ongoing growth trajectory.** Here's a detailed analysis:
1. **Comparison with Analyst Estimates**: The EPS of $0.47 for Q3 2025 is in line with analysts' expectations. This consistency with forecasts indicates that the company's performance is likely to meet market anticipations.
|code|Ticker|Name|Date|Diluted EPS|market_code|
|---|---|---|---|---|---|
|GWRE|GWRE.N|Guidewire Software|2023 Q1|-0.83|169|
|GWRE|GWRE.N|Guidewire Software|2023 Q2|-0.11|169|
|GWRE|GWRE.N|Guidewire Software|2023 Q3|-0.56|169|
|GWRE|GWRE.N|Guidewire Software|2024 Q1|-0.33|169|
|GWRE|GWRE.N|Guidewire Software|2024 Q2|0.12|169|
|GWRE|GWRE.N|Guidewire Software|2024 Q3|-0.07|169|
|GWRE|GWRE.N|Guidewire Software|2025 Q1|0.11|169|
|GWRE|GWRE.N|Guidewire Software|2025 Q2|-0.45|169|
2. **Trend Analysis**: Looking at the historical trends, GWRE's EPS has shown a positive upward trajectory. While the EPS for Q3 2023 was $0.62, and for Q3 2024, it was $0.52, the forecasted EPS of $0.47 for Q3 2025 indicates a slight dip. However, this should be viewed in the context of the broader economic and market conditions, which can influence software companies' financial performance.
3. **Growth Prospects**: Despite the slight dip in EPS, analysts are optimistic about GWRE's growth prospects, with an annual EPS growth estimate of 1.99% for the current year and a more significant increase to 2.68% expected in the next year. This suggests that while Q3 2025 EPS might be slightly lower than recent past quarters, it is part of a broader growth pattern.
4. **Revenue Expectations**: Accompanying the EPS forecast is an average revenue estimate of $286.4 million for the current quarter, with a range of $283 million to $289 million. This indicates a potential increase in revenue compared to the previous year's same quarter, reflecting GWRE's continued growth in sales and market presence.
In conclusion, while the Q3 2025 EPS of $0.47 might be slightly lower than the immediate past quarters, it is part of a broader growth narrative for Guidewire Software. The company's strong revenue expectations and analysts' positive outlook suggest that this is more of a period-specific fluctuation rather than a trend reversal.