Guidewire Software (NYSE:GWRE) Stock Price Up 6.8% After Strong Earnings

Shares of Guidewire Software, Inc. (NYSE:GWRE) rose 6.8% on Friday following a stronger than expected earnings report. The stock traded as high as $172.48 and last traded at $171.71. Approximately 2,405,191 shares were traded during trading, an increase of 32% from the average daily volume of 1,819,846 shares. The stock had previously closed at $160.84.

The technology company reported $1.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.77 by $0.40. Guidewire Software had a net margin of 14.11% and a return on equity of 13.58%. The company had revenue of $359.10 million during the quarter, compared to analyst estimates of $342.88 million. During the same quarter last year, the business posted $0.51 EPS. The firm’s revenue for the quarter was up 24.0% on a year-over-year basis.

Guidewire Software declared that its board has authorized a share buyback plan on Thursday, January 8th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the technology company to buy up to 3.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Key Guidewire Software News

Here are the key news stories impacting Guidewire Software this week:

• Positive Sentiment: Q2 results beat and company raised fiscal‑2026 outlook — Guidewire reported revenue of $359.1M (up 24% YoY), non‑GAAP EPS of $1.17 (vs. $0.77 estimate) and raised full‑year revenue and profit targets; management cited durable demand for large, multi‑year deals. Guidewire Announces Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Cloud & AI tailwinds highlighted as growth drivers — Coverage and management commentary point to accelerating cloud migrations and AI‑driven modernization that are lifting ARR, subscription revenue and multi‑year deal activity. GWRE Q4 deep dive: Cloud momentum and AI tailwinds shape upbeat outlook
• Positive Sentiment: Key metrics show strong subscription traction — Subscription & support revenue grew ~33% and commentary stressed 22% ARR growth, supporting a recurring‑revenue story that investors favor. Guidewire Q2 Earnings & Revenues Beat Estimates, Up Y/Y, Stock Rises
• Positive Sentiment: Capital return boost — Company disclosed a new $500M share repurchase authorization, which can support near‑term stock demand and EPS accretion. Guidewire shares rise after Q2 results beat expectations and full-year outlook was raised
• Neutral Sentiment: Analysts revise models and targets — Several firms updated forecasts after the quarter; some raised targets while others trimmed their price targets (mix of upgrades and cuts leaves consensus view mixed). These Analysts Revise Their Forecasts On Guidewire Software Following Q2 Results
• Negative Sentiment: Significant insider selling noted — Reports show extensive insider sales over recent months, which investors may view as a cautionary signal despite strong operating results. Guidewire shares rise after Q2 results beat expectations and full-year outlook was raised

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on GWRE shares. Zacks Research lowered shares of Guidewire Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 2nd. Stifel Nicolaus lowered their price target on shares of Guidewire Software from $300.00 to $250.00 and set a “buy” rating on the stock in a research report on Friday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Guidewire Software in a research note on Thursday, January 22nd. Wells Fargo & Company cut their price objective on shares of Guidewire Software from $250.00 to $210.00 and set an “overweight” rating for the company in a report on Wednesday, February 4th. Finally, DA Davidson upgraded Guidewire Software from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $246.00 to $250.00 in a report on Wednesday, December 17th. Eleven analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Guidewire Software currently has an average rating of “Moderate Buy” and a consensus target price of $250.15.

Insider Buying and Selling

In other Guidewire Software news, CEO Michael George Rosenbaum sold 1,200 shares of the firm’s stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $125.50, for a total value of $150,600.00. Following the sale, the chief executive officer directly owned 229,543 shares in the company, valued at $28,807,646.50. This trade represents a 0.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider James Winston King sold 1,860 shares of the company’s stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $195.00, for a total value of $362,700.00. Following the transaction, the insider directly owned 33,702 shares of the company’s stock, valued at approximately $6,571,890. This represents a 5.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 42,760 shares of company stock valued at $7,978,508 in the last ninety days. Company insiders own 0.46% of the company’s stock.

Institutional Trading of Guidewire Software

Large investors have recently made changes to their positions in the stock. Capital World Investors acquired a new stake in Guidewire Software in the 4th quarter valued at $202,405,000. Qube Research & Technologies Ltd lifted its stake in shares of Guidewire Software by 3,636.9% during the second quarter. Qube Research & Technologies Ltd now owns 731,467 shares of the technology company’s stock worth $172,224,000 after purchasing an additional 711,893 shares in the last quarter. Groupama Asset Managment boosted its position in shares of Guidewire Software by 240.0% in the second quarter. Groupama Asset Managment now owns 850,000 shares of the technology company’s stock worth $200,132,000 after buying an additional 600,000 shares during the period. Alliancebernstein L.P. increased its holdings in Guidewire Software by 405.1% during the 2nd quarter. Alliancebernstein L.P. now owns 538,303 shares of the technology company’s stock worth $126,743,000 after purchasing an additional 431,725 shares during the last quarter. Finally, Stockbridge Partners LLC raised its stake in Guidewire Software by 39.0% during the fourth quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company’s stock valued at $290,501,000 after buying an additional 405,850 shares in the last quarter.

Guidewire Software Trading Up 5.1%

The stock has a market cap of $14.37 billion, a P/E ratio of 76.82, a price-to-earnings-growth ratio of 10.37 and a beta of 1.06. The firm’s 50 day simple moving average is $154.71 and its two-hundred day simple moving average is $200.92. The company has a quick ratio of 3.48, a current ratio of 3.48 and a debt-to-equity ratio of 0.44.

About Guidewire Software

Guidewire Software, Inc develops software products and cloud services for property and casualty (P&C) insurance carriers. Headquartered in San Mateo, California, the company’s offerings are designed to help insurers manage the core functions of their business—policy administration, billing and claims—while supporting digital engagement, analytics and operational modernization.

Guidewire’s core product portfolio is commonly known as the InsuranceSuite, which includes PolicyCenter for policy administration, BillingCenter for billing and receivables, and ClaimCenter for claims management.