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Guidewire Software (GWRE) Reports Q3 Earnings: What Key Metrics Have to Say

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For the quarter ended April 2026, Guidewire Software (GWRE - Free Report) reported revenue of $372.54 million, up 26.9% over the same period last year. EPS came in at $0.82, compared to $0.88 in the year-ago quarter.

The reported revenue represents a surprise of +4.65% over the Zacks Consensus Estimate of $356.01 million. With the consensus EPS estimate being $0.79, the EPS surprise was +4.23%.

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: $1.15 billion versus the four-analyst average estimate of $1.15 billion.
  • Revenue- Subscription and support: $244.74 million versus $242.07 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +34.6% change.
  • Revenue- License: $56 million versus the five-analyst average estimate of $53.62 million. The reported number represents a year-over-year change of -2.2%.
  • Revenue- Services: $71.81 million versus $60.46 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +31.9% change.
  • Gross profit- License: $55.62 million versus $52.05 million estimated by three analysts on average.
  • Gross profit- Services: $4.17 million versus $1.17 million estimated by two analysts on average.
  • Gross profit- Subscription and support: $176.86 million versus the two-analyst average estimate of $168.36 million.

View all Key Company Metrics for Guidewire Software here>>>

Shares of Guidewire Software have returned +18.3% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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