Guidewire Software: Stifel raises PT to $300 from $270, maintains Buy rating.

Guidewire Software: Stifel raises PT to $300 from $270, maintains Buy rating.

September 02, 2025 - Stifel has raised its price target for Guidewire Software (NYSE: GWRE) to $300 from $270, while maintaining a Buy rating. The upgrade reflects the company's strong performance in the fourth quarter of 2025 and its ongoing momentum in cloud migration.

Stifel analysts highlighted Guidewire's robust quarter driven by cloud migration momentum, with the stock delivering a 51% return over the past year. The firm cited Guidewire's broad-based strength in migrations, expansions, and new business as key drivers. The stock surged more than 12% after the earnings report, closing at $217 [1].

Significant validation for Guidewire's cloud platform was provided by a ten-year deal with Liberty Mutual, which underscores the company's ability to attract large industry players to transition to cloud services. Stifel also noted higher anticipated ARR growth rates for fiscal year 2026, along with solid visibility through ramping contract structures and substantial remaining runway for migrations [1].

In addition to the strong quarterly results, Guidewire reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an EPS of $0.84 compared to the forecast of $0.63. Revenue also exceeded expectations, reaching $356.57 million against the anticipated $337.85 million. The company closed its fiscal year 2025 with annual recurring revenue exceeding $1 billion, representing a 19% increase year-over-year on a constant currency basis [2].

RBC Capital also raised its price target for Guidewire to $300 from $290, citing the company's strong fourth-quarter performance and continued success in cloud execution. The firm highlighted Guidewire's robust financial health and expanding profitability, with subscription revenue increasing 33% year-over-year and subscription gross margins reaching 70% [2].

These developments indicate a positive trajectory for Guidewire, as both Stifel and RBC Capital have increased their price targets and maintained their positive ratings. Investors are encouraged to closely monitor Guidewire's progress in cloud migration and its ability to maintain strong financial performance.

References:
[1] https://www.investing.com/news/analyst-ratings/stifel-raises-guidewire-stock-price-target-to-300-on-cloud-momentum-93CH-4226327
[2] https://www.investing.com/news/analyst-ratings/guidewire-stock-price-target-raised-to-300-from-290-at-rbc-capital-93CH-4226265