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- **Record Q1 Growth**: ARR up 22% YoY to $1.06B, driven by 8 cloud deals including major insurers. Services revenue beat expectations with 68M.
- **New Product Breakthroughs**: PricingCenter/UnderwritingCenter launched to modernize manual workflows, with early customer traction.
- **AI-Driven Efficiency**: Generative AI integration (via ProNavigator) enables real-time guidance, reducing underwriting cycle times.
- **Financial Strength**: FY26 ARR raised to $1.22B-$1.23B, reflecting confidence in cloud migration pipeline and new product adoption.
- **Sustainable Momentum**: 50% of new deals expanded existing implementations, signaling long-term customer commitment.

**【CEO Summary Section】**
- **Q1 Momentum**: ARR grew 22% YoY to $1.063B, driven by 8 cloud deals, including major wins with The Hartford, Sompo, and a UK mutual insurer. 6 of these deals included data/analytics offerings.
- **New Product Launches**: Introduced PricingCenter and UnderwritingCenter to address fragmented pricing and underwriting workflows. Generative AI integration (e.g., ProNavigator acquisition) enables in-context guidance for actuaries and underwriters.
- **AI Strategy**: Leveraging extensible cloud platform to embed generative AI in core applications, starting with PolicyCenter and expanding to new products.
- **Customer Expansion**: 50% of new deals expanded existing implementations, reflecting trust in Guidewire's cloud platform.

**【CFO Financial Commentary】**
- **Top Line**: Q1 revenue $333M (+27% YoY), with subscription/support up 31% to $222M. Services revenue $68M beat expectations due to high utilization.
- **Profitability**: Non-GAAP operating income $63M (+83% YoY). Subscription/support gross margin 73%, services margin 23%.
- **Updated Outlook**: FY26 ARR guidance raised to $1.22B-$1.23B (prev $1.20B-$1.21B). Revenue $1.40B-$1.42B (prev $1.38B-$1.40B). ProNavigator adds $4M ARR and $2M revenue.
- **Cash Flow**: $1.4B cash on hand. FY26 operating cash flow $355M-$375M.

**【Q&A Highlights】**
- **Product Adoption Timing**: Pricing/UnderwritingCenters expected to follow a faster adoption path than core PolicyCenter, with early customer interest.
- **Services Growth**: Higher services revenue reflects investment in AI implementation and new product enablement, with 2026 services revenue guidance raised to $245M.
- **AI Integration**: Generative AI will improve implementation efficiency (e.g., reducing onboarding time) and enable new use cases like dynamic pricing model deployment.
- **Geographic Mix**: Balanced demand across North America (5 deals) and international (3 deals), with strength in Europe and APAC.
- **ARR Seasonality**: Q3 ARR growth may face headwinds from multi-year license renewals, but FY26 guide reflects strong pipeline visibility.

Guidewire Software, Inc. (GWRE) Q1 2026 Earnings Call Transcript

- **ARR Growth Milestone**: Surpassed $1 billion ARR with 19% YoY growth, driven by cloud platform adoption.
- **Strategic Win**: 10-year Liberty Mutual deal signals industry confidence in Guidewire's cloud platform.
- **Margin Expansion**: Subscription gross margin improved to 70%, reflecting cloud scalability.
- **AI Innovation Focus**: Investing in generative AI to modernize underwriting, claims, and pricing workflows.
- **Healthy Pipeline**: FY2026 guided for 17% ARR growth, supported by durable demand and expanding analytics adoption.

**【CEO Summary Section】**
- Fiscal 2025 ARR reached $1.041 billion, growing 19% YoY on a constant currency basis, with fully ramped ARR up 22%.
- Signed a landmark 10-year deal with Liberty Mutual for ClaimCenter and PolicyCenter cloud migrations.
- Subscription and support gross margin improved to 70%, reflecting cloud platform scalability.
- Emphasized AI-driven innovation in pricing, underwriting, and claims through acquisitions like Quantee and Industry Intel.

**【President's Deal Highlights】**
- Q4 2025 saw 19 core cloud deals, totaling 57 for the year, with 9 Tier 1 insurer wins.
- Geographic strength: Europe closed 11 deals, Latin America saw 3 net new wins, and Asia-Pacific expanded in Japan.
- 8 migrations, 6 expansions, and 6 net new customers, including 4 full InsuranceSuite implementations.
- 16 deals included Industry Intel or analytics products, showcasing data-driven value.

**【CFO Financial Commentary】**
- FY2025 total revenue $1.2 billion, with subscription revenue up 40% to $667 million.
- Operating income $208 million (10% YoY growth), driven by subscription margin expansion to 70%.
- FY2026 outlook: ARR $1.21-1.22 billion (17% growth), subscription revenue $888 million, and gross margin 66%.
- Q1 2026 ARR expected $1.048-1.054 billion, with subscription margin 71-72%.

**【Q&A Highlights】**
- **ARR Attrition**: Record-low due to successful project execution and customer success focus.
- **AI & Platform Expansion**: Generative AI investments to enhance underwriting, claims, and pricing efficiency.
- **Liberty Mutual Impact**: Deal validates cloud strategy and may drive similar long-term commitments from other Tier 1s.
- **App Marketplace**: 300+ third-party apps and 200+ tech partners, enabling ecosystem-driven innovation.
- **Customer Engagement**: Proactive account alignment to accelerate cloud migrations and reduce license revenue decline.

Guidewire Software, Inc. (GWRE) Q4 2025 Earnings Call Transcript

- **ARR Milestone Achieved**: Q3 ARR of $960M, with full-year target raised to $1.012-$1.022B, surpassing $1B for the first time.
- **InsuranceNow Breakthrough**: 3 net new wins, including 2 largest deals, positioning for growth in the small insurer segment.
- **Japan Investment Payoff**: $60M 5-year commitment to deepen market penetration, with first cloud customer showcasing claims processing efficiency.
- **AI-Driven Efficiency**: Launch of predictive claims model and generative AI tools for developer productivity highlight platform innovation.
- **Profitability Expansion**: Subscription & support gross margin 71%, up from 66% YoY, with services margin improving to 13%.


**【CEO Summary Section】**
- **Record Q3 Sales**: Closed 17 cloud deals, including 7 Tier 1 core system wins, driving ARR to $960 million. Raised full-year ARR outlook to $1.012-$1.022 billion, surpassing $1 billion milestone.
- **InsuranceNow Momentum**: Secured 3 net new wins, including 2 largest ever, targeting smaller insurers with flexible, pre-integrated solutions.
- **International Expansion**: Significant cloud expansion in Canada, wins in APAC and EMEA, and $60M 5-year investment in Japan to deepen local operations.
- **Customer Success**: 10 customers went live on Guidewire Cloud, including Cincinnati Insurance and Santa Lucia, showcasing platform reliability.
- **AI and Innovation**: Launched first Guidewire Industry Intelligence model, leveraging anonymized data for predictive claims analytics. Developer Summit in India highlighted advancements in AI-driven development tools and cloud-based solutions.

**【CFO Financial Commentary】**
- **Revenue Growth**: Total revenue $294M (+22% YoY), with subscription & support at $182M (+32% YoY). Services revenue $54M, benefiting from strong bookings.
- **Profitability**: Non-GAAP gross margin 65%, with subscription & support margin 71% (vs. 66% YoY). Services margin 13% (vs. 10% YoY), reflecting operational efficiency.
- **Cash Flow**: $32M operating cash flow, driven by strong collections. Ended quarter with $1.2B in cash, up from $1.1B last quarter.
- **FY25 Outlook**: Raises ARR to $1.012-$1.022B, subscription & support gross margin 69-70%, and operating income $187-195M. Cash flow guidance increased to $255-275M.

**【Q&A Highlights】**
- **Japanese Market Strategy**: $60M 5-year investment to enhance local partnerships and compliance with regulatory standards like Solvency II. First cloud customer in Japan highlighted claims processing efficiency gains.
- **AI Adoption**: Generative AI tools for claims triage, policy submission analysis, and developer productivity (e.g., code completion for legacy system modernization) show early success.
- **Quantee Acquisition**: Pricing & rating technology to be integrated into broader product strategy, targeting actuaries' need for agile rate design and production workflows.
- **ARR Ramp Dynamics**: Q3 ARR growth balanced between new deals and ramps, with record low attrition and high ramping activity. Fully ramped ARR growth expected to maintain upper teens YoY.


Guidewire Software, Inc. (GWRE) Q3 2025 Earnings Call Transcript

- **Cloud Growth Accelerating**: 12 cloud deals, 6 on-prem migrations, 50% on-prem customers now in cloud. 
- **ARR Upside**: $918M ARR (+16-17% YoY), Q4 ARR from backlog 3x Q3 levels. 
- **AI Expansion**: Generative AI for claims/underwriting; 12-18 month timeline for implementation. 
- **Market Share Ambition**: Targeting >50% of global P&C DWP; FY25ARR reflects 16%+ growth vs. 14% in FY2016. 
- **Profitability**: 65% gross margin, $54M op profit; FY25 non-GAAP op income $175-185M. 
- **Competitive Edge**: 70%+ win rate in cloud vs. legacy; 1 competitive takeaway Q2. 


**【CEO Business Update】**
- **Cloud Migration Momentum**: 12 cloud deals closed, including 4 full InsuranceSuite deployments, with 6 on-prem to cloud migrations. 50% of on-prem customers now have cloud commitments. 
- **New Customer Growth**: 5 new customers added (e.g., Brazil, Belgium), including a competitive takeaway at a Tier 3 insurer. 
- **Geographic Expansion**: 1/3 of deals in Europe, with wins at large London market insurers. 
- **Ecosystem Strength**: 26,000 Guidewire-focused practitioners, 10,500 cloud-certified professionals, and 500+ apps in Guidewire Marketplace. 
- **AI Integration**: Exploring generative AI for claims processing, underwriting, and document management, while maintaining core focus on successful implementations. 

**【CFO Financial Highlights】**
- **ARR Growth**: $918M ARR (16-17% YoY), driven by $45M net new ARR. Q4 ARR from backlog will be 3x Q3 levels. 
- **Revenue Performance**: $289M total revenue (+20% YoY), with subscription & support at $178M (+35% YoY). 
- **Profitability**: 65% gross margin, $54M operating profit. FY25 outlook raised to $1.16-1.17B revenue, $175-185M non-GAAP op income. 
- **Cash Flow**: $86M operating cash flow, $1.4B cash on hand. Repaid $100M of 2025 convertible notes to limit dilution. 

**【Q&A Key Takeaways】**
- **Cloud Migration Strategy**: 100% on-prem to cloud by end of decade; 50%+ of on-prem customers now in cloud. 
- **AI Opportunity**: Generative AI for claims efficiency, underwriting, and workflow automation; 12-18 month timeline for meaningful impact. 
- **Market Share Ambition**: Aiming for >50% of global P&C DWP; 2025ARR reflects 16%+ growth vs. 14% in FY2016. 
- **Services Margin**: 12% target for FY25; focus on utilization, AI-driven efficiency, and India-based delivery. 
- **Competitive Takeaways**: 1 competitive win Q2; 70%+ win rate in cloud vs. legacy systems. 
- **California Wildfires Impact**: No direct financial impact; reinforces need for modern systems to manage catastrophe response. 


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