Guidewire Software Q4 net income falls on foreign currency loss
GWRE•Analyst coverage
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell".
- The average consensus recommendation for the software peer group is "buy".
- Wall Street's median 12-month price target for Guidewire Software, Inc. is $210.00, about 8.9% above its September 2 closing price of $192.76.
- The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 37 three months ago.
Drivers of the quarter
- Subscription growth - Q4 subscription and support revenue rose 32%, which the company attributed to expanding demand for core and AI-focused products.
- License revenue decline - License revenue fell 18% in Q4, with no specific explanation provided by the company.
- Foreign currency impact - GAAP net income was negatively affected by a $24 million foreign currency loss in Q4.
Quarterly results beat estimates
- Insurance software provider's Q4 revenue rose 15%, beating analyst expectations.
- Adjusted EPS and adjusted net income for Q4 beat analyst expectations.
- Company repurchased $606.3 million in shares during fiscal 2026.
