AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Guidewire Software Q2 Earnings Exceed Expectations, Shares Jump 17.3%
ByAinvest
Friday, Sep 5, 2025 1:07 pm ET1min read
Guidewire Software (GWRE) shares jumped 17.3% after Q2 2025 financial results surpassed analyst estimates. The company reported revenue of $356.6 million, up 22.3% YoY, and adjusted earnings of $0.84 per share, beating expectations by 5.8% and 33.3%, respectively. ARR grew to $1.03 billion, and the company issued strong revenue guidance for Q3. The results were fueled by a successful transition to a subscription-based cloud model and increased efficiency.
Guidewire Software (GWRE) has reported its Q2 2025 financial results, which exceeded analyst estimates, leading to a 17.3% jump in its stock price. The company reported a revenue of $356.6 million, a 22.3% year-over-year increase, and adjusted earnings of $0.84 per share, surpassing expectations by 5.8% and 33.3%, respectively [1]. The company's Annual Recurring Revenue (ARR) grew to $1.03 billion, reflecting a robust performance in its transition to a subscription-based cloud model.The results were driven by a successful shift to cloud-based solutions, which contributed significantly to the company's growth. The subscription revenue, which accounted for the largest share, rose by 33%, while cloud and recurring revenue now represent 74% of the total ARR [1]. This shift has positioned Guidewire as a leader in the P&C insurance software market, with a market share of over 55% [2].
Guidewire's financial health was further bolstered by its strong free cash flow, which rose by 25.6% to $237.7 million in FY2025 [2]. The company also provided strong revenue guidance for Q3 2025, projecting total revenue between $1.385 billion and $1.405 billion and ARR between $1.21 billion and $1.22 billion [1].
Despite the positive results, the company faces challenges such as competition from emerging insurtech players and macroeconomic headwinds. However, its long-term contracts and recurring revenue model provide a stable foundation for growth.
References:
[1] https://www.ainvest.com/news/guidewire-software-gwre-q4-earnings-outperformance-growth-trajectory-assessing-sustainability-cloud-driven-revenue-shareholder-2509/
[2] https://www.ainvest.com/news/guidewire-software-2025-q4-earnings-record-net-income-surges-210-2509/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet