Guidewire Q2 EPS $1.17, Revenues Surge 24% and Raises FY26 Outlook
Guidewire reported non-GAAP EPS of $1.17 in Q2 fiscal 2026, up from $0.51 last year and beating estimates by $0.40. Revenues rose 24% to $359.1 million, beating guidance, while ARR climbed 22% to $1.121 billion, prompting an increase to FY26 revenue forecast of $1.438–1.448 billion.
1. Q2 Financial Results
Guidewire delivered non-GAAP EPS of $1.17 in Q2 fiscal 2026, surpassing the $0.77 consensus and rising from $0.51 a year ago. Total revenues jumped 24% to $359.1 million, exceeding both estimates and the guided range of $339–$345 million.
2. Segment Performance and Margins
Subscription and support revenues climbed 33.4% to $237.2 million, representing 66.1% of sales. License revenues dipped 6.5% to $59.5 million, while services revenues rose 30.1% to $62.4 million, driving non-GAAP gross margin up to 67.6% from 65.2%.
3. ARR Growth and Guidance Raise
Annual recurring revenue reached $1.121 billion, up 22% year over year. The company lifted its fiscal 2026 guidance, forecasting ARR of $1.229–$1.237 billion (up 18–19%) and raising total revenue outlook to $1.438–$1.448 billion from prior ranges.