Guidewire Software, Inc.
- Open
- 204.44
- Day high
- 207.49
- Day low
- 203.71
- Prev close
- 205.85
- Volume
- 1.3M
- Mkt cap
- $17.0B
- P/E (TTM)
- 108.3
- EPS (TTM)
- $1.89
- P/B
- 12.9
- P/S
- 12.0
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$10.6M over the last 3 months (0 open-market buys, 23 sales)
- 🏛Institutions mixed (13F)
Guidewire Software, Inc. (GWRE) is a Technology company listed on NYSE. The stock is down 5% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 23 sales (SEC Form 4).
Guidewire Software, Inc. (GWRE) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 11 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
GWRE earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 4, 2026 | $0.76 | $0.82 | +7.6% | $373M | +4.6% |
| Mar 5, 2026 | $0.77 | $1.17 | +51.8% | $359M | +4.5% |
| Dec 3, 2025 | $0.61 | $0.66 | +7.5% | $333M | +5.0% |
| Sep 4, 2025 | $0.64 | $0.84 | +32.3% | $357M | +5.4% |
| Jun 3, 2025 | $0.46 | $0.88 | +90.3% | $294M | +2.6% |
| Mar 6, 2025 | $0.52 | $0.51 | -1.4% | $289M | +1.6% |
| Dec 5, 2024 | $0.30 | $0.43 | +43.3% | $263M | +4.1% |
| Sep 5, 2024 | $0.54 | $0.62 | +14.0% | $292M | +2.5% |
| Jun 4, 2024 | $0.13 | $0.26 | +95.6% | $241M | +4.3% |
| Mar 7, 2024 | $0.23 | $0.46 | +99.0% | $241M | -0.3% |
| Dec 7, 2023 | $-0.18 | $-0.44 | -144.4% | $207M | +2.8% |
| Sep 7, 2023 | $0.34 | $0.74 | +117.6% | $270M | +3.1% |
GWRE insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 27, 2026 | Peterson David Franklinofficer: Chief Accounting Officer | Sell | 2,500 | $200.00 |
| Aug 26, 2026 | Mullen John Pofficer: President | Sell | 16,200 | $185.00 |
| Aug 26, 2026 | Mullen John Pofficer: President | Sell | 1,800 | $188.46 |
| Aug 24, 2026 | Rosenbaum Michael Georgedirector, officer: Chief Executive Officer | Sell | 1,200 | $187.82 |
| Aug 20, 2026 | Mullen John Pofficer: President | Sell | 14,400 | $185.00 |
| Aug 17, 2026 | Rosenbaum Michael Georgedirector, officer: Chief Executive Officer | Sell | 1,200 | $172.88 |
| Aug 12, 2026 | Vollert Karl Alexanderdirector | Grant | 578 | — |
| Aug 10, 2026 | Rosenbaum Michael Georgedirector, officer: Chief Executive Officer | Sell | 1,200 | $169.50 |
| Aug 3, 2026 | Rosenbaum Michael Georgedirector, officer: Chief Executive Officer | Sell | 1,200 | $155.92 |
| Jul 27, 2026 | Rosenbaum Michael Georgedirector, officer: Chief Executive Officer | Sell | 1,200 | $142.31 |
| Jul 20, 2026 | Rosenbaum Michael Georgedirector, officer: Chief Executive Officer | Sell | 1,200 | $147.42 |
| Jul 13, 2026 | Rosenbaum Michael Georgedirector, officer: Chief Executive Officer | Sell | 1,200 | $138.47 |
| Jul 9, 2026 | King James Winstonofficer: Chief Admin Officer, Gen Couns | Sell | 1,684 | $130.64 |
| Jul 6, 2026 | Rosenbaum Michael Georgedirector, officer: Chief Executive Officer | Sell | 1,200 | $131.63 |
| Jun 29, 2026 | Rosenbaum Michael Georgedirector, officer: Chief Executive Officer | Sell | 1,200 | $124.29 |
Source: GWRE SEC Form 4 filings, latest Aug 27, 2026. For informational purposes only — not investment advice.
See the full GWRE insider & 13F page →Guidewire Software, Inc. company profile
Overview
Guidewire Software, Inc. (NYSE:GWRE) is a leading provider of cloud-based software solutions specifically designed for the property and casualty insurance industry. Founded in 2001 and headquartered in San Mateo, California, the company went public in January 2012. Guidewire has established itself as the dominant platform provider for P&C insurers worldwide, serving 13 of the top 15 global insurance companies. The company has successfully completed a multi-year transformation from an on-premises software vendor to a cloud-first platform provider, with cloud-based solutions now representing 66% of its annual recurring revenue as of fiscal 2024.
Business
Guidewire operates exclusively within the property and casualty (P&C) insurance technology sector, providing mission-critical software systems that insurers use to manage their core business operations. The P&C insurance industry covers non-life insurance products such as auto, home, commercial property, workers' compensation, and specialty lines of coverage. The company's flagship offering is Guidewire InsuranceSuite, a comprehensive cloud-based platform consisting of three core applications that handle the fundamental insurance business processes. PolicyCenter manages policy administration including underwriting, rating, and policy issuance. BillingCenter handles premium billing, collections, and financial accounting. ClaimCenter manages the entire claims lifecycle from first notice of loss through settlement. These systems replace legacy mainframe and custom-built systems that many insurers have relied on for decades. For smaller insurers, Guidewire offers InsuranceNow, a cloud-native platform that provides policy, billing, and claims management functionality in a more streamlined package. The company also provides specialized applications including Rating Management for pricing optimization, Reinsurance Management for risk transfer strategies, and Digital Engagement Applications for customer-facing interactions. Beyond core systems, Guidewire offers data and analytics solutions including Predictive Analytics applications, Business Intelligence tools, and DataHub for operational data management. The company has also invested in expanding its ecosystem through the Guidewire Marketplace, which features over 500 third-party applications and integrations. Revenue is primarily generated through subscription and support services (approximately 60% of total revenue), traditional software licenses (25%), and professional services (15%). The company is actively transitioning customers from on-premises licenses to cloud subscriptions, which provide more predictable recurring revenue streams.
Revenue model
Guidewire operates a software-as-a-service (SaaS) business model with multiple revenue streams tailored to the insurance industry's unique needs and buying patterns. The primary revenue source is subscription and support revenue, which has grown to represent approximately 60% of total revenue. Cloud subscriptions are typically structured as multi-year contracts with annual recurring revenue commitments. These subscriptions include platform access, regular software updates, cloud infrastructure, and ongoing technical support. Pricing is generally based on factors such as premium volume processed, number of policies, or transaction volumes, aligning costs with the insurer's business scale. License revenue represents about 25% of total revenue, primarily from on-premises software deployments. While this segment is declining as the company transitions to cloud-first, it still generates significant revenue from existing customers and some new implementations. License deals often involve large upfront payments followed by annual maintenance fees. Professional services revenue accounts for approximately 15% of total revenue, including implementation, integration, training, and consulting services. However, Guidewire is strategically reducing its direct services involvement, instead partnering with a network of over 38 system integrators who employ more than 25,000 Guidewire-certified professionals. The company's margins are influenced by several key factors. Positive margin drivers include the shift to cloud subscriptions which provide better gross margins (65-70% versus 50-60% for services), economies of scale in cloud infrastructure, and reduced need for direct professional services. Margin pressures come from continued investment in cloud platform development, competitive pricing in large enterprise deals, and the need to maintain extensive partner training and certification programs. The insurance industry's long sales cycles and large deal sizes also create quarterly revenue volatility, though the recurring nature of the business provides underlying stability.
Competitive moat
Guidewire possesses a strong competitive moat built on several interconnected defensive characteristics that are particularly valuable in the conservative, highly regulated insurance industry. The company's primary moat stems from high switching costs and deep integration within customers' operations. Insurance core systems handle mission-critical functions including policy administration, claims processing, and financial reporting that are essential for regulatory compliance and daily operations. Replacing these systems typically requires 2-4 year implementation projects costing millions of dollars, extensive staff retraining, and significant business disruption. Once implemented, Guidewire's systems become deeply embedded in insurers' workflows, making switching extremely costly and risky. Network effects strengthen the moat through Guidewire's extensive partner ecosystem. With over 25,000 certified professionals across 38 system integrators, the platform benefits from a large pool of implementation expertise that competitors cannot easily replicate. The Guidewire Marketplace's 500+ applications create additional stickiness by providing customers with integrated solutions that would be difficult to recreate on alternative platforms. The company also benefits from regulatory and compliance advantages. Insurance is heavily regulated with complex reporting requirements that vary by jurisdiction. Guidewire's systems are pre-configured for these requirements and regularly updated for regulatory changes, providing significant value that generic software platforms cannot match. However, the moat faces potential challenges from cloud-native competitors who may offer more modern architectures and faster implementation times. Additionally, large technology companies with substantial resources could potentially develop competing platforms, though the specialized nature of insurance operations creates barriers to entry. The company's position with 13 of the top 15 global insurers provides some protection, but smaller insurers may be more open to alternative solutions, particularly if they offer significantly lower costs or faster deployment.
Risks & safety
Guidewire demonstrates a moderate margin of safety with solid financial fundamentals but elevated valuation metrics that warrant careful consideration. **Financial Strength:** - Strong balance sheet with $697 million in cash and short-term investments as of Q2 2025 - Current ratio of 2.65x indicates good liquidity position - Debt-to-equity ratio of 0.70x is manageable, though higher than historical levels - Positive free cash flow of $85 million in Q2 2025, showing operational cash generation - No immediate solvency concerns given cash position and recurring revenue base **Valuation Concerns:** - Price-to-book ratio of 13.9x appears elevated for a mature software company - EV/EBITDA multiple is distorted by near-breakeven EBITDA, but underlying metrics suggest high valuation - Trading at significant premium to tangible book value despite negative recent net income - Revenue multiple appears high relative to growth rates in the low-20% range **Other Considerations:** - Recurring revenue model provides revenue predictability and cash flow visibility - Cloud transition still in progress, creating both opportunity and execution risk - Long customer implementation cycles provide some revenue stability but also limit agility - Concentrated customer base in insurance industry creates sector-specific risk
Recent development
Over the past few years, Guidewire has executed a fundamental strategic transformation from an on-premises software vendor to a cloud-first platform provider. This multi-year cloud migration initiative has been the company's primary strategic focus, with management committing to migrate 100% of their customer base to cloud-based solutions. The company has demonstrated strong execution in cloud adoption, closing 42 cloud deals in fiscal 2024 and maintaining momentum with 12 cloud deals in Q2 2025 alone. Notably, the mix has shifted toward full InsuranceSuite implementations rather than individual application deployments, indicating growing customer confidence in the platform's capabilities. The company has successfully completed numerous cloud migrations, with customers increasingly willing to expand their implementations beyond initial commitments. Artificial intelligence integration has emerged as a key strategic initiative, with Guidewire exploring generative AI applications across the insurance workflow. The company is developing AI capabilities for developer productivity, claims adjustment processes, underwriting document management, and shared data asset creation. This represents a significant opportunity to enhance platform value and differentiate from competitors. Geographic expansion continues to be a priority, with particular focus on Europe and Asia-Pacific markets. The company has invested in local content and market-specific functionality to compete more effectively with regional vendors, while establishing centers of excellence in key markets. Recent wins in Brazil and Belgium demonstrate progress in international expansion. The partner ecosystem strategy has been substantially expanded, with the network growing to over 25,000 certified professionals across 38 system integrators. The Guidewire Marketplace now features over 500 applications, creating a comprehensive ecosystem that enhances platform stickiness and provides additional value to customers. This ecosystem approach allows Guidewire to reduce its direct professional services involvement while maintaining implementation quality and capacity.
GWRE company profile · for informational purposes only — not investment advice.
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