Guidewire Software Soars 14% on 22% Revenue Surge

Guidewire Software's stock price surged by 11.08% in pre-market trading on September 5, 2025, driven by strong financial performance and strategic shifts.

Guidewire Software reported a significant increase in its stock price, rising 14% to reach $248.40. This surge followed the announcement of its fourth-quarter earnings, which showed a 22% year-over-year increase in revenue, reaching $356.6 million. The company's non-GAAP earnings per share for the quarter were $0.84, a 35.5% increase from the same period in the previous fiscal year. This strong financial performance was driven by a successful transition to a recurring revenue model, with Annual Recurring Revenue (ARR) reaching $872 million as of July 31, 2024, a 14% increase from the previous year.

Guidewire Software's fiscal year 2025 marked a significant cloud transformation, with ARR crossing $1 billion, up 19% year-over-year. The company's fiscal Q4 net income was $52 million, with adjusted earnings of $0.84 per share, surpassing Wall Street estimates. This strong performance was supported by a 14% annual growth rate in sales over the last three years, although this growth fell short of some expectations. The company's strategic shift towards a recurring revenue model has positioned it well for future growth, with a strong focus on cloud services and software solutions.