Guidewire Software 2026 Q1 Earnings Record Net Income Surges 242.6%

Guidewire Software (GWRE) reported fiscal 2026 Q1 earnings on Dec 04th, 2025, with revenue rising 26.5% year-over-year and net income hitting a 16-year high. The company raised full-year guidance for ARR and revenue, reflecting strong cloud adoption and AI-driven innovation.

Revenue

Guidewire’s total revenue surged to $332.64 million in Q1 2026, a 26.5% increase from $262.90 million in Q1 2025. Subscription and support revenue led with $222.20 million, driven by cloud migration, while license and services segments contributed $41.97 million and $68.47 million, respectively.

Earnings/Net Income

Earnings per share (EPS) jumped 236.4% to $0.37, and net income reached $31.31 million—a 242.6% year-over-year growth. This marked a record high for Q1 net income, underscoring the company’s profitability expansion.

Post-Earnings Price Action Review

A strategy of buying GWRE when revenues miss and holding for 30 days yielded a 53.61% return, underperforming the benchmark’s 85.89%. While the approach avoided losses (0.00% maximum drawdown), its Sharpe ratio of 0.25 and 35.45% volatility highlighted its conservative nature.

CEO Commentary

CEO Mike Rosenbaum emphasized momentum in cloud adoption, AI integration, and ecosystem partnerships, citing eight new cloud deals and the launch of PricingCenter and UnderwritingCenter. He expressed confidence in long-term value creation and pipeline visibility.

Guidance

Guidewire raised FY2026 ARR guidance to $1.22–1.23 billion and total revenue to $1.403–1.419 billion. Q2 guidance includes $1.107–1.113 billion in ARR and $339–345 million in revenue, with subscription and support margins near 73%.

Additional News

Guidewire acquired AI firm ProNavigator to enhance generative AI capabilities, aligning with its cloud and data-driven workflow strategies. CEO Mike Rosenbaum sold 30,317 shares for $7.36 million in September 2025, reflecting insider activity. The company also announced $4 million in ARR and $2 million in revenue from ProNavigator integration.