$GWRE · Guidewire Software, Inc.
Guidewire Software filed its 10-K for FY2026 (ended July 31, 2026), reporting total revenue of $1.475B, up 22.7% year-over-year. Subscription and support revenue surged 32.8% to $970.9M, while license revenue declined 6.9% to $234.6M as the business continues its cloud transition. Net income reached $139.3M (diluted EPS $1.63), a dramatic turnaround from a $6.1M net loss in FY2024. Gross margin was 64.2% and operating margin hit 10.2%.
- Revenue grew 22.7% YoY to $1.475B, driven by subscription and support jumping 32.8% to $970.9M.
- Net income swung to $139.3M (diluted EPS $1.63) from a net loss of $6.1M in FY2024.
- Gross margin expanded to 64.2% with operating margin reaching 10.2%, up from negative territory in FY2024.
- Stock-based compensation totaled $181.8M, with $303.1M in unrecognized SBC remaining as of July 31, 2026.
- Shares outstanding declined to 81.99M from 84.53M a year ago, reflecting buyback activity.
GWRE rose 0.59% in the regular session to $140.92. The after-hours session is underway; extended-hours moves are not yet captured in this price.
Guidewire's FY2026 results mark a definitive inflection to sustained profitability as the cloud transition reaches critical mass, with subscription revenue now nearly 4x license revenue.
Guidewire's cloud transition is accelerating: subscription revenue now represents 65.8% of total revenue vs. 60.8% last year, while legacy license revenue declined 6.9%. This mirrors the broader P&C insurtech shift toward SaaS-based core systems.
Subscription agreements are typically five-year initial terms; customer concentration risk exists if large insurers delay cloud migrations. $423.3M in goodwill (up from $394.0M) creates impairment exposure if growth assumptions weaken.
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