Highlights

  • Fiscal 2026 total revenue was $1,475,363 thousand, compared with $1,202,459 thousand, and net income was $139,283 thousand, or $1.63 per diluted share.
  • ARR was $1,237 million at July 31, 2026, which the company stated grew 19% in fiscal year 2026.
  • Guidewire repurchased 4,085,350 shares at an average price of $148.41 during fiscal year 2026, with $31.9 million remaining under the program.
  • Management guided fiscal 2027 total revenue of $1.707 billion to $1.727 billion and operating cash flow of $445 million to $465 million.

Guidewire Software, Inc. (NYSE: GWRE) shares were trading at USD 172.92 on October 27, 2026, down 6.00%, with a relative volume at time of 2.26. The insurance software company held its fiscal 2026 fourth quarter earnings call on September 9, 2026, issued fiscal 2027 guidance, and filed its annual report for the fiscal year ended July 31, 2026 on September 11, 2026.

Guidewire is incorporated in Delaware and lists its principal executive offices in San Mateo, California. It provides a platform used by property and casualty (P&C) insurers, combining core transactional systems with digital, analytics and AI capabilities. Its core products, InsuranceSuite and InsuranceNow, are delivered as cloud-based subscription services on the Guidewire Cloud Platform. Its fiscal year ends July 31, and it had 4,174 employees at July 31, 2026.

Fiscal 2026 Results

Total revenue for the fiscal year ended July 31, 2026 was $1,475,363 thousand, compared with $1,202,459 thousand. Subscription and support revenue was $970,885 thousand, compared with $731,296 thousand. License revenue was $234,578 thousand, compared with $251,935 thousand, and services revenue was $269,900 thousand, compared with $219,228 thousand.

Gross profit was $947,368 thousand, compared with $752,053 thousand. Income from operations was $149,874 thousand, compared with $41,068 thousand. Net income was $139,283 thousand, or $1.63 per diluted share, compared with $69,804 thousand, or $0.81. The provision for income taxes was $24,834 thousand, compared with a benefit of $20,409 thousand a year earlier.

ARR, a key business metric, was $1,237 million at July 31, 2026, or $1,242 million based on currency exchange rates as of July 31, 2025, and the company stated that ARR grew 19% on both bases. Free cash flow, a non-GAAP measure, was $358,657 thousand, compared with $280,412 thousand.

Balance Sheet, Credit and Share Repurchases

Cash, cash equivalents and investments were $1,215,286 thousand at July 31, 2026, compared with $1,483,197 thousand a year earlier. Working capital was $522,479 thousand, compared with $962,613 thousand. Net cash provided by operating activities was $389,716 thousand,.

Guidewire had $690.0 million of 2029 Convertible Senior Notes outstanding. The filing states that conversion of the notes may dilute the ownership interests of existing stockholders if the company satisfies its conversion obligation by delivering shares. A $300.0 million revolving credit facility had no outstanding borrowings, and the company stated that it was in compliance with related covenants.

The board authorized a new repurchase program of up to $500.0 million in January 2026. During fiscal year 2026, the company repurchased 4,085,350 shares at an average price of $148.41 and did not repurchase shares in fiscal year 2025. It had $31.9 million available under the new program and expects excise taxes of approximately $3.1 million related to fiscal 2026 repurchases.

Management Commentary

On the earnings call, management said annual gross ARR attrition was under 1.5% and that 105 customers had fully ramped ARR of over $5 million. It described a multiyear agreement with Nationwide to migrate its core systems to the cloud and add PricingCenter. The filing lists reliance on sales to a relatively small number of large customers among its risks.

Fiscal 2027 Outlook

On the call, management said it expects fiscal 2027 ARR of $1.45 billion to $1.46 billion, assuming foreign exchange rates as of the end of fiscal 2026 are held constant. It expects total revenue of $1.707 billion to $1.727 billion, and subscription and support revenue of $1.240 billion to $1.246 billion. Non-GAAP operating income is expected at $403 million to $423 million, GAAP operating income at $197 million to $217 million, and operating cash flow at $445 million to $465 million.

Management also said it expects term license revenue from recent cloud migration customers to decline by almost $50 million in fiscal 2027 and that its outlook assumes ARR attrition normalizes relative to fiscal 2026.