Guidewire Shares Drop 1.03% as $1.2B Revenue and 10-Year Cloud Deal Boost Trading Volume 91.68% to 362nd Rank

On September 4, 2025, Guidewire (GWRE) reported a 1.03% decline in its stock price, with a trading volume of $0.30 billion, a 91.68% surge from the prior day, ranking 362nd in market activity. The company released fiscal 2025 results, highlighting a 19% annual recurring revenue (ARR) growth to $1.032 billion and total revenue of $1.2 billion, up 23% year-over-year. Subscription and support revenue rose 33%, driven by a landmark 10-year cloud agreement with a major insurer.

Guidewire’s profitability improved markedly, with GAAP net income of $69.8 million for FY2025, reversing a $6.1 million loss in 2024. Non-GAAP net income reached $227.9 million, or $2.65 per share, reflecting stronger operational discipline and a 25% operating cash flow margin. Q4 results were equally robust, with $356.6 million in revenue, a 22% year-over-year increase, and non-GAAP operating income of $73.5 million.

The 10-year deal with a Tier-1 insurer underscored Guidewire’s platform maturity, enabling larger contracts and deeper client commitments. CEO Mike Rosenbaum emphasized the strategic shift toward cloud solutions, while CFO Jeff Cooper highlighted accelerated growth in ARR and fully ramped ARR. Despite these positives, the stock’s decline suggests market skepticism about near-term guidance or broader sector dynamics.

Guidewire’s cash reserves grew to $1.483 billion, with $300.9 million in operating cash flow. For FY2026, the company forecasts ARR between $1.21 billion and $1.22 billion, total revenue of $1.385–$1.405 billion, and non-GAAP operating income of $259–$279 million. The backtest results indicate historical performance aligns with these projections, though future execution and macroeconomic factors will remain critical for sustained momentum.