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Guidewire Software 2026 Q1 Earnings Net Income Surges 242.6% on Strong Revenue Growth
Generated by AI AgentDaily EarningsReviewed byAInvest News Editorial Team
Wednesday, Dec 3, 2025 10:18 pm ET1min read
Aime SummaryGuidewire Software (GWRE) reported Q1 2026 earnings that exceeded revenue expectations and raised full-year guidance, reflecting robust cloud adoption and strategic momentum. The company’s shares edged up 0.62% in the latest trading day but fell 7.65% month-to-date, while its post-revenue drop trading strategy showed historically strong performance.
Revenue
Guidewire’s total revenue surged 26.5% year-over-year to $332.64 million, driven by strong demand for its cloud solutions. Subscription and support revenue led the way with $222.20 million, complemented by license revenue of $41.97 million and services revenue of $68.47 million. This diversification across revenue streams underscored the company’s transition to recurring revenue models and expanding product adoption.
Earnings/Net Income
The company’s EPS jumped 236.4% to $0.37, with net income reaching $31.31 million—242.6% higher than the prior year. This marked a 16-year high for Q1 net income, highlighting improved profitability and operational efficiency. The EPS performance, while slightly below non-GAAP figures, demonstrated the company’s ability to scale earnings amid growth.
Post-Earnings Price Action Review
The strategy of buying
shares after a revenue decline quarter-over-quarter and holding for 30 days delivered a 248.69% return over three years, outperforming the benchmark by 178.13%. This approach capitalized on post-revenue drop momentum, with a CAGR of 52.15% and zero maximum drawdown, showcasing its resilience and risk-adjusted returns.Additional News
Guidewire’s CEO and President sold shares via prearranged plans, with Rosenbaum disposing of 1,400 shares and Mullen 3,000 shares. Institutional investor M.D. Sass LLC acquired 12,353 shares, signaling confidence in the stock. Analysts maintained a “Moderate Buy” rating, with price targets averaging $272, reflecting optimism about the company’s AI-driven product roadmap and market positioning.
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