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Guidewire Software (GWRE) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

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Guidewire Software (GWRE - Free Report) reported $293.51 million in revenue for the quarter ended April 2025, representing a year-over-year increase of 22%. EPS of $0.88 for the same period compares to $0.26 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $285.72 million, representing a surprise of +2.73%. The company delivered an EPS surprise of +91.30%, with the consensus EPS estimate being $0.46.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Guidewire Software performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Annual recurring revenue: $960 million versus $944.40 million estimated by four analysts on average.
  • Revenue- Subscription and support: $181.82 million versus $178.14 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +31.8% change.
  • Revenues- License: $57.23 million versus $55.33 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +1.8% change.
  • Revenues- Services: $54.45 million versus the five-analyst average estimate of $52 million. The reported number represents a year-over-year change of +17.1%.
  • Gross profit- Subscription and support: $124.41 million versus $120.51 million estimated by four analysts on average.
  • Gross profit- Services: $1.95 million versus the four-analyst average estimate of $3.92 million.
  • Gross profit- License: $56.34 million versus the four-analyst average estimate of $54.87 million.
View all Key Company Metrics for Guidewire Software here>>>

Shares of Guidewire Software have returned +2.3% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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