Overview
Guidewire Software Inc (NYSE:GWRE) reported fourth‑quarter 2026 results that beat analyst expectations, but its shares fell 19.2% in after‑hours trading on Thursday after the company issued weaker‑than‑expected revenue guidance for the first quarter of fiscal 2027.
Financial Results – Q4 2026
Adjusted earnings per share were $0.99, surpassing the consensus estimate of $0.93 by $0.06. Revenue for the quarter was $411.1 million, a 15% year‑over‑year increase and above the $402.7 million estimate. Subscription and support revenue grew 32% YoY to $266.7 million, license revenue declined 18% to $77.1 million, and services revenue rose 10% to $67.3 million. Annual recurring revenue reached $1.237 billion as of July 31 2026, reflecting 19% constant‑currency growth.
FY2026 Summary
Total revenue for fiscal 2026 rose 23% to $1.475 billion. Cash generated from operations was $389.7 million. The company repurchased 4.1 million shares for $606.3 million at an average price of $148.41 per share.
Guidance – FY2027
For the full fiscal year 2027, Guidewire projects revenue between $1.707 billion and $1.727 billion, with the midpoint of $1.717 billion modestly above the $1.7 billion analyst consensus. The company expects first‑quarter adjusted operating income of $64 million to $70 million and full‑year adjusted operating income of $403 million to $423 million.
Q1 FY2027 Revenue Guidance
Revenue for the first quarter of fiscal 2027 is guided at $372 million to $378 million, missing the consensus estimate of $387.1 million; the midpoint of $375 million represents a 3% shortfall.
Management Commentary
Chief Executive Officer Mike Rosenbaum said the company “closed a great fourth quarter, capping off an incredible year of expanding demand,” adding that customers are deepening commitments to Guidewire’s core offerings and expanding with new pricing and AI‑focused products.
Market Reaction
Following the guidance release, Guidewire shares declined 19.2% in after‑hours trading.