GWRE NYSE Russell 1000 Earnings call
Guidewire Software (GWRE) · Q2 2026 results and valuation
Share price: $158.16 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q4 2026 · published 3 Sep 2026 and 4 Jun 2026
Net income up 90.6% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+90.6%
Net income vs Q1 2026
Outlook given
Net income 31.4M vs 16.5M
Revenue +10.3%
Against the same quarter last year (Q2 2025) it is −39.6%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Guidewire Software's ARR finished the year at $1.242 billion, up 19% year-over-year, exceeding the high end of the company's guidance range.
Valuation
Is Guidewire Software undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-07-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 17.7% growth a year (3-year revenue growth), the model's fair value is $200.73 a share — the stock trades 21% below it. Today's price assumes 14.3% growth a year.
Current price
$158.16
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+14.3% for 10 yrs
Fair value / share
$200.73
Buy below
$150.55
Price vs fair value
Undervalued 21%
Price vs buy-below price
Overvalued 5%
Management expects
Revenue +31% · from the Q2 2026 report: “The company expects subscription revenue to grow approximately 31% in the upcoming period.”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
Subscription and support gross margins expected to be between 75% and 76%.
Source quote
“We expect subscription and support gross margins to be between 75% and 76%.”
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Key theme
ARR on a constant currency basis benefited from new sales activity and the lowest gross ARR attrition rate since the metric began, though the year-end FX update made it lower.
Source quote
“As a reminder, we report ARR on a constant currency basis throughout the year and then update at year-end for FX... ARR benefited from strong new sales activity and the lowest gross ARR attrition rate since we started measuring ARR as a metric. Making this update negatively...”
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Guidance
ARR finished the year at $1.242 billion, up 19% year-over-year, which exceeded the high end of the company's guidance range.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Fully ramped ARR grew 22%, marking the fourth consecutive year that fully ramped growth outpaced ARR growth.”
“On the 4Q ARR number, growth was strong, but it's a seasonally stronger period.”
“Regulatory and compliance precision and increasing demands for efficiency contributed to this win.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)
| Metric | Q2 2026period end 2026-07-31 | Q1 2026period end 2026-04-30 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 411.1M | 372.5M | +10.3% | 356.6M | +15.3% |
| Gross profit | 269.7M | 236.6M | +14.0% | 231.8M | +16.3% |
| Operating income | 62.3M | 30.6M | +103.4% | 29.6M | +110.6% |
| Net income | 31.4M | 16.5M | +90.6% | 52.0M | −39.6% |
| EPS | 0.37 | 0.19 | +94.7% | 0.60 | −38.3% |
| P/E today 100.1 | 93.2 | 74.4 | +18.8 | 279.3 | −186.1 |
Topics
Most discussed now
- Guidewire Software is kind of building that flywheel of this incredible asset that is this...
- Fully ramped ARR grew 22%, marking the fourth consecutive year that fully ramped growth outpaced ARR growth.
- New One of the things that was exciting Guidewire Software called out in the script is the momentum that it saw in...
- These statements are subject to risks, uncertainties and assumptions and are based on...
- Subscription and support revenue grew 33%, and Guidewire Software exceeded expectations across revenue, operating income and cash flow.
Faded since Q1 2026
- Fading Services revenue finished at $72 million, up 32% year-over-year, well ahead of Guidewire Software's expectations on continued strong demand…
- Fading Subscription and support gross margin was 74% compared to 71% a year ago.
- Fading Jeff mentioned this, like Guidewire Software is creating alternative ways to get to the number and alternative products to sell in…
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K