Guidewire Surges 15% as ARR Reaches $1B in Q4, Analysts Expect Similar Growth in FY26

Guidewire Software's Q4 fiscal 2025 financial results exceeded expectations, with annual recurring revenue surpassing $1B, a 15% increase. The company's stock surged 15% in early market trading. Analysts expect similar growth in FY26, driven by the strong performance and increasing demand for its software platforms in the property and casualty insurance industry.

Guidewire Software (NYSE: GWRE) reported strong financial results for the fourth quarter and fiscal year 2025, surpassing market expectations. The company announced its financial performance for the period ended July 31, 2025, highlighting robust growth and increased demand for its software platforms in the property and casualty insurance industry.

Key highlights from the quarter and year include:

- Annual Recurring Revenue (ARR): Guidewire's ARR for fiscal year 2025 reached $1,032 million, a 19% increase compared to the previous year. On a constant currency basis, ARR grew by 19%.
- Total Revenue: Total revenue for fiscal year 2025 was $1,202.5 million, representing a 23% increase from fiscal year 2024.
- Profitability: Guidewire reported GAAP income from operations of $41.1 million for fiscal year 2025, compared to a GAAP loss of $52.6 million in fiscal year 2024. Non-GAAP income from operations was $208.2 million, a significant improvement over the $99.5 million reported in the previous year.
- Stock Performance: Following the announcement, Guidewire's stock surged 15% in early market trading.

Analysts expect similar growth in fiscal year 2026, driven by the strong performance and increasing demand for Guidewire's software platforms. The company's outlook for the first quarter of fiscal year 2026 includes ending ARR between $1,048 million and $1,054 million, total revenue between $315 million and $321 million, and operating income between $1 million and $7 million.

Guidewire's management attributes the strong performance to a significant 10-year agreement with a major Tier-1 insurer, which exemplifies the platform's maturity and referenceability, driving increased deal sizes and deeper customer commitments.

For further details, investors can refer to the press release and conference call information provided by Guidewire [1].

References:
[1] Guidewire - Fourth Quarter and Fiscal Year 2025 Financial Results [https://www.guidewire.com/about/press-center/press-releases/20250904/guidewire-announces-fourth-quarter-and-fiscal-year-2025-financial-results](https://www.guidewire.com/about/press-center/press-releases/20250904/guidewire-announces-fourth-quarter-and-fiscal-year-2025-financial-results)