Guidewire Exceeds Expectations with 22% Revenue Jump in Q4, Reaches $1 Billion in Annual Recurring Revenue for First Time

Guidewire Software reported Q4 FY2025 GAAP revenue of $356.6 million, up 22% YoY, and non-GAAP earnings per share of $0.84, up 35.5% YoY. The company surpassed $1 billion in annual recurring revenue for the first time, reaching $1.03 billion, up 19%. Guidewire's cloud and subscription business showed strong growth, and the company remains on track with its strategic focuses.

Title: Guidewire Software Reports Strong Q4 FY2025 Results, Surpasses $1 Billion in ARR

Guidewire Software Inc. (GWRE) reported robust financial results for the fourth quarter (Q4) of fiscal year 2025 (FY2025), with significant growth in both GAAP revenue and non-GAAP earnings per share. The company's Q4 GAAP revenue of $356.6 million represents a 22% year-over-year (YoY) increase, while non-GAAP earnings per share climbed to $0.84, up 35.5% YoY. Notably, Guidewire Software surpassed the $1 billion mark in annual recurring revenue (ARR) for the first time, reaching $1.03 billion, a 19% YoY increase [1].

The company's cloud and subscription business demonstrated strong growth, with cloud ARR growing 36% YoY and now representing 74% of total ARR. The company's fully ramped ARR growth was 22% YoY. These impressive figures underscore the continued demand and adoption of Guidewire's cloud platform within the property and casualty (P&C) insurance industry.

For FY2026, Guidewire Software has provided guidance for ARR growth of 17% and subscription revenue growth of 34%, with improving margins and strong cash flow. The company's strategic focus on cloud transformation and data analytics is evident in its acquisition of Quanti, which aims to modernize pricing operations and product management across the industry. Additionally, the company's Guidewire Industry Intelligence offering promises to drive down loss and expense ratios for customers through predictive models in claims operations.

The Q4 results were driven by significant customer wins, including a strategic partnership with Liberty Mutual, a major Tier 1 insurer, which chose to migrate their on-premise ClaimCenter instance to the cloud and made a 10-year commitment to Guidewire for PolicyCenter on the Guidewire Cloud Platform. This landmark partnership highlights the company's ability to deliver value and innovation to the P&C insurance industry.

The company's strong pipeline entering FY2026, driven by the success and referenceability of its cloud customers, indicates a durable demand environment. This growth is being fueled by the successful programs driven by the company's professional services team, which continues to generate great engagement and conversations with insurers of all sizes across various regions.

In summary, Guidewire Software's Q4 FY2025 results demonstrate the company's continued momentum in the P&C insurance industry. The strong financial performance, coupled with strategic acquisitions and partnerships, positions the company well for future growth and innovation.

References
[1] https://finance.yahoo.com/quote/GWRE/earnings/GWRE-Q4-2025-earnings_call-349811.html