MyChoice Named to Guidewire Insurtech Vanguards Program Mar 23, 2026 9:17 AM Eastern Daylight Time MyChoice Named to Guidewire Insurtech Vanguards Program Share TORONTO--(BUSINESS WIRE)--MyChoice, a Canadian insurtech improving submission quality and underwriting confidence in the broker and carrier channels, announced that the company has joined the Guidewire Insurtech Vanguards program, an initiative led by property and casualty (P&C) cloud platform provider, Guidewire (NYSE: GWRE), to help insurers learn ...

Core Insights - Artisan Small Cap Fund aims to invest in companies with franchise characteristics, strong earnings trajectories, and trading at a discount to estimated private market value [1] - The Fund experienced strong absolute returns in Q4 2025, outperforming both the Russell 2000® Growth Index and the Russell 2000® Index, despite elevated volatility and shifting market sentiment [1] - For the full year 2025, the Fund generated strong results but underperformed relative to both indexes [1] Company Highlights - Guidewire Software, Inc. (NYSE:GWRE) is a leading provider of cloud-based software for property and casualty insurance companies, with a market capitalization of $13.751 billion [2] - Guidewire Software, Inc. delivered a 32.26% return in the past month but saw a decline of 15.47% over the past twelve months [2] - In Q4 2025, Guidewire was noted as a detractor for the Fund, losing momentum after outperforming in the first three quarters of the year [3] - The company has maintained a strong profit cycle driven by insurance carrier modernization, and the Fund trimmed its position in Guidewire into strength, holding a medium-sized position as valuations became more reasonable [3]

Core Viewpoint - Guidewire Software (GWRE) has shown a significant price increase of 26.4% over the past four weeks, with analysts projecting a mean price target of $236.77, indicating a potential upside of 47.5% from the current price of $160.57 [1] Price Targets and Analyst Estimates - The mean estimate consists of 13 short-term price targets with a standard deviation of $43.16, suggesting variability in analyst predictions. The lowest estimate is $160.00, indicating a slight decline, while the highest estimate is $300.00, reflecting an optimistic potential increase of 86.8% [2] - Analysts' price targets can often mislead investors, as empirical research indicates that these targets rarely predict actual stock price movements accurately [7][10] - A low standard deviation among price targets indicates a strong consensus among analysts regarding the stock's price direction, which can serve as a starting point for further research [9] Earnings Estimates and Analyst Sentiment - Analysts have shown growing optimism regarding GWRE's earnings prospects, as evidenced by a strong agreement in revising EPS estimates higher. This trend is correlated with near-term stock price movements [11] - The Zacks Consensus Estimate for the current year has increased by 42.2% over the past month, with six estimates revised upward and no negative revisions [12] - GWRE holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside in the near term [13]

Group 1: Market Performance - The BBH Select Series – Mid Cap ETF decreased by 3.9% in Q4 2025, underperforming the Russell Midcap Index, which returned 0.2% [1] - The year was marked by the outperformance of unprofitable and highly volatile companies, with healthcare and materials being the top-performing sectors in Q4, while communication services and real estate sectors declined [1] Group 2: Guidewire Software, Inc. Overview - Guidewire Software, Inc. (NYSE:GWRE) is a leading provider of cloud-based software for property and casualty (P&C) insurance companies, with a market capitalization of $13.45 billion [2] - The stock closed at $158.93 per share on March 10, 2026, delivering a 21.87% return in the past month but losing 9.90% over the past twelve months [2] Group 3: Performance Analysis of Guidewire Software, Inc. - Guidewire was one of the largest detractors to performance in Q4 2025, declining by 12.6% during the quarter despite strong fundamental performance [3] - The company reported annual recurring revenue (ARR) growth of +21% in constant currency, the fastest growth since it began reporting this metric in 2020, and subscription revenue growth of +36% with 82% incremental margins [3] - Full-year guidance was raised for all metrics, and the introduction of new modules, PricingCenter and UnderwritingCenter, is expected to enhance customer opportunities [3] - Concerns about AI commoditizing software coding have negatively impacted the software sector, but Guidewire is positioned to benefit from increased adoption of its cloud-based solutions [3]

Core Insights - Guidewire Software's international operations are crucial for understanding its financial strength and growth potential, especially given its extensive global presence [1][2] Revenue Performance - The company's total revenue for the quarter reached $359.1 million, marking a 24.1% increase year over year [4] - Breakdown of international revenue shows significant contributions from various regions, highlighting the importance of overseas operations [4] International Revenue Breakdown - Other Americas contributed $4.81 million (1.3% of total revenue), with a surprise increase of +38.62% compared to expectations of $3.47 million [5] - Canada generated $44.05 million (12.3% of total revenue), exceeding projections by +7.63% [6] - Total APAC contributed $23.97 million (6.7% of total revenue), falling short of expectations by -6.13% [7] - Total EMEA accounted for $59.07 million (16.5% of total revenue), surpassing analyst expectations by +18.28% [8] Future Projections - Analysts project total revenue of $356.1 million for the current fiscal quarter, reflecting a 21.3% increase year over year [9] - For the full year, total revenue is expected to reach $1.44 billion, indicating a 20.2% rise from the previous year [10] Market Context - The reliance on international markets provides both opportunities and challenges, necessitating close monitoring of revenue trends for accurate future projections [12] - The interconnected global economy influences the company's financial health and growth trajectory, making it essential for investors to understand its international market dependence [2][3]

Core Viewpoint - The article emphasizes the investment strategy focused on small-cap companies, highlighting the importance of identifying mispriced securities through a comprehensive understanding of financial drivers and DCF model valuation [1]. Group 1: Investment Philosophy - The investment philosophy revolves around generating great returns by identifying mispriced securities [1]. - The methodology is flexible, not confined to traditional value, dividend, or growth investing, but considers all prospects of a stock to assess risk-to-reward [1]. Group 2: Market Focus - The investment focus includes markets in the US, Canada, and Europe, indicating a broad geographical scope for potential investment opportunities [1].

Core Insights - Guidewire Software, Inc. (GWRE) reported non-GAAP earnings per share of $1.17 for Q2 fiscal 2026, a significant increase from 51 cents in the same period last year, surpassing the Zacks Consensus Estimate of 77 cents [1][9] - The company achieved revenues of $359.1 million, reflecting a 24% year-over-year growth, exceeding the Zacks Consensus Estimate by 4.8% and surpassing its own guidance of $339-$345 million [2][9] Financial Performance - Annual recurring revenue (ARR) reached $1.121 billion, up 22% year over year, with expectations for fiscal 2026 ARR to be between $1.229 billion and $1.237 billion, indicating an 18% to 19% increase [4][9] - Total revenues for fiscal 2026 are projected to be between $1.438 billion and $1.448 billion, an increase from the previous expectation of $1.403 billion to $1.419 billion, compared to total revenues of $1.202 billion in fiscal 2025 [5][9] - Subscription and support revenue is expected to be between $962 million and $966 million [5] Operational Highlights - The subscription and support segment's revenues accounted for 66.1% of total revenues, increasing by 33.4% year over year to $237.2 million [7] - License revenues, making up 16.6% of total revenues, decreased by 6.5% year over year to $59.5 million, while services revenues (17.3% of total) increased by 30.1% year over year to $62.4 million [10] - Non-GAAP gross margin improved to 67.6% from 65.2% year over year, with the subscription and support segment's gross margin rising to 75% from 69.2% [10] Future Outlook - For Q3 fiscal 2026, GWRE expects ending ARR to be between $1.144 billion and $1.150 billion, with subscription and support revenue projected in the range of $239 million to $243 million, and total revenue anticipated to be between $352 million and $358 million [13] - GAAP operating income is expected to range from $11 million to $17 million, while non-GAAP operating income is projected between $59 million and $65 million [13] Market Reaction - Shares of GWRE increased approximately 5% in after-market trading on March 5, 2026, despite a 11.8% decline over the past year compared to a 4.5% decline in the Internet Software industry [6]

Core Insights - Guidewire Software reported strong financial performance in fiscal Q2 2026, with revenue of $359 million, a 24% increase year-over-year, and annual recurring revenue (ARR) of $1.121 billion, up 22% year-over-year [1][2][3] Financial Performance - Subscription and support revenue reached $237 million, up 33%, attributed to the momentum in InsuranceSuite cloud [1] - Services revenue was $62 million, up 30%, driven by demand for Guidewire-led services programs [1] - Non-GAAP gross profit was $243 million, up 28%, with a gross margin of 68% [6] - The company ended the quarter with over $1.35 billion in cash and cash equivalents, and operating cash flow of $112 million [7] Growth Indicators - Fully ramped ARR ended Q2 at $1.42 billion, indicating growth outpacing reported ARR [2] - Remaining performance obligations (RPO) were $3.5 billion, up 63% year-over-year, reflecting strong deal momentum [5][11] - The weighted average term for new InsuranceSuite contracts exceeded six years, indicating longer customer commitments [5][10] Product and Market Trends - Generative AI is driving demand for core modernization, with early traction for ProNavigator and other data and analytics offerings [4][17] - Guidewire closed 15 InsuranceSuite cloud deals and reported significant customer wins, including a deal with a major Canadian insurer [9][10] - The company is focusing on a pricing model based on a percentage of direct written premium rather than a seat-based model [13] Future Outlook - Guidewire raised its full-year ARR outlook to $1.229 billion to $1.237 billion, implying 18% to 19% year-over-year growth [7] - Management expects overall gross margin to be approximately 67% for the year, with subscription and support gross margin expectations raised to around 74% [8] - The company anticipates stock-based compensation of approximately $185 million and operating cash flow of $360 million to $375 million [8]

Core Insights - Guidewire Software, Inc. (GWRE) has raised its fiscal 2026 revenue outlook to $1.448 billion, driven by large deals and momentum in artificial intelligence [2] Management View - CEO Mike Rosenbaum reported that Q2 2026 saw a 22% growth in Annual Recurring Revenue (ARR) [2] - The company is positioned as the stand-alone leader in providing mission-critical core systems for the Property and Casualty (P&C) insurance industry [2]

Core Insights - Guidewire Software (GWRE) reported revenue of $359.1 million for the quarter ended January 2026, reflecting a year-over-year increase of 24.1% [1] - The earnings per share (EPS) for the quarter was $1.17, significantly higher than the $0.51 reported in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $342.52 million, resulting in a positive surprise of 4.84% [1] - The company also delivered an EPS surprise of 52.94%, with the consensus EPS estimate being $0.77 [1] Financial Metrics - Annual recurring revenue reached $1.12 billion, slightly above the average estimate of $1.11 billion from four analysts [4] - Subscription and support revenue was reported at $237.21 million, surpassing the average estimate of $229.04 million, marking a year-over-year increase of 33.4% [4] - License revenue was $59.53 million, compared to the estimated $55.73 million, but showed a decline of 6.5% year-over-year [4] - Services revenue amounted to $62.36 million, exceeding the average estimate of $57.95 million, with a year-over-year increase of 30.1% [4] - Gross profit from subscription and support was $173.28 million, higher than the estimated $163.97 million [4] - Gross profit from license revenue was $59.09 million, compared to the average estimate of $54.39 million [4] - Gross profit from services was reported at -$0.85 million, falling short of the estimated $5.23 million [4] Stock Performance - Guidewire Software's shares have returned 16.4% over the past month, while the Zacks S&P 500 composite experienced a slight decline of 0.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]