Guidewire delivered a strong beat-and-raise quarter with accelerating subscription revenue (+35% YoY) and raised FY guidance across revenue, operating income, and cash flow. The 19% ARR growth and raised Q4 outlook ($396M-$406M revenue) signal sustained cloud migration demand. Monitor Q4 results for ARR progression toward $1.23B+ and any margin expansion commentary.
Price Chart
Executive Summary
Guidewire reported Q3 FY2026 revenue of $372.5M (+27% YoY) and non-GAAP EPS of $0.82, beating consensus estimates of $356.1M and $0.74. The company raised its full-year revenue, operating income, and cash flow guidance, driven by 19% ARR growth and strong subscription revenue momentum (+35% YoY).
Key Financial Metrics
Key Facts
- Total revenue $372.5M, +27% YoY vs $293.5M
- Non-GAAP diluted EPS $0.82 vs consensus $0.74 (10.4% beat)
- Subscription & support revenue $244.7M, +35% YoY
- ARR $1,147M, up 19% from $1,041M at July 31, 2025
- FY2026 total revenue guidance raised to $1,460M-$1,470M (from $1,438M-$1,448M)
- FY2026 non-GAAP operating income guidance raised to $314M-$324M (from $293M-$303M)
- FY2026 operating cash flow guidance raised to $365M-$380M (from $360M-$375M)
- GAAP net income $16.5M, impacted by $20.1M foreign currency loss
- Free cash flow $53.7M in Q3, up from $27.8M a year ago
- Repurchased 1,696,180 shares at avg $147.07 in Q3; $240.5M remaining on $500M buyback program
Financial Impact
Revenue beat consensus by $16.4M (4.6%), EPS beat by $0.08 (10.4%). Full-year guidance raised across all key metrics.
Risk Factors
- GAAP net income declined to $16.5M from $46.0M YoY due to $20.1M FX loss
- License revenue declined 2% YoY as mix shifts to subscription
- Cash and investments declined to $1.15B from $1.48B at year-start due to buybacks and debt maturity
- Services revenue gross margin remains low at 5.8%
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001528396-26-000026 |
| Document: gwre-20260604.htm | 0001528396-26-000026 |
| Document: 0001528396-26-000026-index-headers.html | 0001528396-26-000026 |
| Document: 0001528396-26-000026-index.html | 0001528396-26-000026 |
| Document: 0001528396-26-000026.txt | 0001528396-26-000026 |
| 8-K Data (Synthetic) | 0001528396-26-000026 |
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