分组1 - Guidewire Software reported quarterly earnings of $0.66 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.43 per share a year ago [1] - The company achieved revenues of $332.64 million for the quarter ended October 2025, exceeding the Zacks Consensus Estimate by 4.86%, compared to $262.9 million in the same quarter last year [2] - Guidewire Software has surpassed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has increased approximately 27.4% since the beginning of the year, outperforming the S&P 500's gain of 16.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.75 on revenues of $336.47 million, and for the current fiscal year, it is $2.99 on revenues of $1.4 billion [7] - The Zacks Industry Rank for Internet - Software is in the top 26% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Performance - Total revenue for the three months ended October 31, 2025, was $332,639,000, representing a 26.5% increase from $262,901,000 in the same period of 2024[18] - Net income for the quarter was $31,308,000, compared to $9,139,000 in the prior year, marking a significant increase of 242.5%[19] - Basic net income per share rose to $0.37, up from $0.11 in the same quarter last year[18] - The company reported a gross profit of $209,522,000, which is a 32.3% increase from $158,392,000 in the previous year[18] - Gross profit margin improved to 63% for the three months ended October 31, 2025, compared to 60% in the prior year[96] - Net income for the three months ended October 31, 2025, was $31.3 million, significantly up from $9.1 million in the same period of 2024[96] - Non-GAAP net income for the three months ended October 31, 2025, was $57.0 million, up from $36.7 million in 2024, reflecting a 55.2% year-over-year growth[181] Revenue Breakdown - Subscription and support revenue increased to $222,203,000, up 30.8% from $169,742,000 year-over-year[18] - Subscription revenue increased to $207.5 million in Q1 2025, compared to $152.9 million in Q1 2024, reflecting a growth of 35.7%[40] - Support revenue decreased by $2.1 million to $14.7 million, attributed to customers migrating from on-premise term licenses to subscription services[139] - Term license revenue increased by $4.6 million to $42.0 million, mainly due to an annual renewal after a multi-year commitment[141] - Services revenue rose by $12.7 million to $68.5 million, driven by higher utilization of services employees and new subscription implementation projects[142] Expenses and Costs - Research and development expenses rose to $78,317,000, an increase of 13.5% from $68,880,000 year-over-year[18] - Total operating expenses rose to $191.0 million, a 17% increase from $163.1 million in the prior year, representing 58% of total revenue[157] - Sales and marketing expenses grew by $12.8 million to $64.3 million, largely due to increased personnel costs and marketing expenses related to the annual customer conference[163] - General and administrative expenses increased by $5.7 million to $48.5 million, driven by higher personnel costs and bad debt expenses[166] Cash Flow and Assets - Cash and cash equivalents decreased to $492,038,000 from $697,902,000, a decline of 29.5%[16] - Cash flows from operating activities showed a net outflow of $67.4 million for the three months ended October 31, 2025, compared to an outflow of $62.3 million in the same period of 2024[24] - Net cash used in operating activities was $67.4 million for the three months ended October 31, 2025, compared to $62.3 million in the same period of 2024, indicating an increase in cash used by $5.1 million[190] - As of October 31, 2025, cash, cash equivalents, and investments totaled $1.4 billion, down from $1.5 billion as of July 31, 2025[182] Liabilities and Equity - Total liabilities decreased to $1,105,913,000 from $1,263,869,000, a reduction of 12.5%[16] - Total stockholders' equity increased to $1,533,418,000 from $1,457,230,000, reflecting a growth of 5.2%[16] Investments and Financing - The company issued $690 million in aggregate principal amount of its 2029 Convertible Senior Notes in October 2024, with net proceeds of $671.8 million after deducting issuance costs[62] - The effective interest rate of the 2029 Convertible Senior Notes is 1.8%, with a total principal amount of $690 million as of October 31, 2025[66] - The company recognized total interest expense of $3.3 million related to debt instruments for the three months ended October 31, 2025, compared to $2.1 million for the same period in 2024[67] Strategic Initiatives - The company continues to invest in product development and cloud operations to enhance existing products and introduce new capabilities, which is critical for maintaining competitive advantage and revenue growth[107] - The company is expanding its network of system integrator partners to enhance sales efficiency and reduce implementation costs for customers[111] Risks and Challenges - The company faces risks related to reliance on a small number of large customers, lengthy sales cycles, and global economic disruptions that may impact revenue and ARR growth[112] - The company is exposed to risks related to data security incidents and unauthorized access to customer data, impacting its cloud-based operations[209] - The company must navigate an uncertain regulatory environment regarding AI, which may result in reputational harm or liability[209] - The company is subject to market risks, including geopolitical events and supply chain disruptions, which could impact its operations and stock price[212] Compliance and Governance - The company evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[201] - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended October 31, 2025[203] - The company is not currently involved in any legal proceedings likely to have a material adverse effect on its business or financial position[207]

Financial Data and Key Metrics Changes - The company reported a record Q1 with ARR ending at $1.063 billion, up 21% year over year on a constant currency basis [15] - Total revenue reached $333 million, reflecting a 27% year-over-year increase [15] - Subscription and support revenue grew 31% to $222 million, while license revenue increased by 12% to $42 million [15][16] - Operating income was $63 million, up 83% year over year, with gross profit at $219 million and a gross margin of 66% [17] Business Line Data and Key Metrics Changes - The company saw continued momentum with eight cloud deals in Q1, contributing to a 22% year-over-year growth in ARR [9] - Professional services revenue finished at $68 million, exceeding expectations due to high utilization [16] - New applications, Pricing Center and Underwriting Center, are expected to enhance agility and performance for insurers [10][11] Market Data and Key Metrics Changes - Five significant deals were closed in North America, including major insurers like The Hartford and Sompo, alongside three international deals [9] - The company is experiencing strong demand in both North America and international markets, with healthy demand in Europe and optimism in Asia-Pacific [66] Company Strategy and Development Direction - The company aims to leverage generative AI to enhance productivity and unlock new product opportunities [7][8] - Focus will shift towards new product offerings while continuing to grow the core business [13] - The acquisition of ProNavigator is expected to enhance the company's capabilities in AI and knowledge management [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the pipeline and raised the annual outlook for ARR to between $1.220 billion and $1.230 billion [18] - The company anticipates continued growth driven by cloud migrations and expansions into new product areas [78] - Management highlighted the importance of successful customer projects to drive future expansions [60] Other Important Information - The company is adjusting its expectations for cash flow from operations to be between $355 million and $375 million for the year [20] - Subscription and support gross margin expectations have been raised to between 72% and 73% for the year [19] Q&A Session Summary Question: Can you elaborate on the operational agility related to the new products? - The integration of new products is designed to enhance flexibility for insurers, allowing them to respond more effectively to market changes [25][26] Question: How should we interpret the momentum in services revenue? - The services revenue growth is indicative of strong demand and is expected to continue as the company invests in generative AI to improve implementation costs [30][31] Question: Are you seeing more simultaneous consumption of key products? - The company is witnessing a trend where large customers are migrating multiple products to the cloud simultaneously, reflecting increased trust in the platform [33][34] Question: What is the timeline for adoption of the new Pricing and Underwriting Centers? - Adoption is expected to be slightly faster than previous core products due to the incremental nature of the offerings [41][42] Question: How does the company view competition in the AI space? - The company aims to foster innovation in the industry by being an open platform, allowing third-party AI solutions to integrate with its core systems [55][56] Question: What are the growth drivers for the future? - Growth will be driven by migrations, expansions, and new product areas, with a healthy pipeline of opportunities [78][79]

Financial Data and Key Metrics Changes - The company reported a record Q1 with ARR of $1.063 billion, up 21% year over year on a constant currency basis [12] - Total revenue reached $333 million, reflecting a 27% year-over-year increase [12] - Subscription and support revenue grew 31% to $222 million, while license revenue increased by 12% to $42 million [12][13] - Operating income was $63 million, up 83% year over year, with a gross profit of $219 million and a gross margin of 66% [14][15] Business Line Data and Key Metrics Changes - The company saw continued momentum in its core business, with eight cloud deals closed in Q1 [7] - New applications, Pricing Center and Underwriting Center, are expected to enhance agility and performance for insurers [9] - Professional services revenue finished at $68 million, exceeding expectations due to high utilization [15] Market Data and Key Metrics Changes - Five significant deals were closed in North America, including major insurers like The Hartford and Sompo, alongside three international deals [7] - The resilient global P&C insurance market continues to modernize, driving demand for cloud products [8] Company Strategy and Development Direction - The company aims to leverage generative AI to enhance productivity and create new products [5] - Focus will shift towards new opportunities while continuing to grow the core business [6] - The acquisition of ProNavigator is expected to enhance the company's offerings in AI-powered knowledge management [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the pipeline and raised the annual outlook for ARR to between $1.220 billion and $1.230 billion [16] - The company anticipates continued strong demand for its cloud products and services, with a focus on innovation and new product development [11] Other Important Information - The company ended the quarter with over $1.4 billion in cash, cash equivalents, and investments [15] - Expectations for subscription and support gross margin have been raised to between 72%-73% for the year [16] Q&A Session Summary Question: Insights on operational agility and new products - Management highlighted the integration of new products with existing applications as a key differentiator, enhancing agility for insurers [23] Question: Incremental investment in services and its implications - Management noted that higher services revenue expectations are driven by demand and investments in generative AI to reduce implementation costs [28] Question: Adoption timeline for new products - Management expects the adoption of Pricing Center and Underwriting Center to be slightly faster than previous core products due to their incremental nature [38] Question: ARR guidance and components - Management raised ARR guidance based on strong Q1 performance, pipeline strength, and the acquisition of ProNavigator [33] Question: Generative AI's impact on cloud migration - Management indicated that while generative AI is a positive influence, it is not the primary driver for cloud migration [60] Question: North American vs. international demand - Management expressed confidence in a broad-based global pipeline, with healthy demand in both North America and Europe [61]

Financial Performance - Total revenue for Q1 FY 2026 was $332.6 million, a 27% increase year-over-year[6] - Subscription and support revenue reached $222.2 million, up 31% compared to the same quarter in FY 2025[6] - Annual recurring revenue (ARR) grew to $1,063 million, reflecting a year-over-year increase of 22%[6] - GAAP net income for Q1 FY 2026 was $31.3 million, compared to $9.1 million in the same quarter of FY 2025[6] - Non-GAAP net income for Q1 FY 2026 was $57.0 million, an increase from $36.7 million in Q1 FY 2025[6] - Total revenue for the three months ended October 31, 2025, was $332,639,000, representing a 26.5% increase from $262,901,000 in the same period of 2024[22] - Net income for the three months ended October 31, 2025, was $31,308,000, compared to $9,139,000 in the same period of 2024, marking a significant increase[22] - Subscription and support revenue increased to $222,203,000, up 30.8% from $169,742,000 year-over-year[22] - The company reported a gross profit of $209,522,000, up from $158,392,000, representing a 32.3% increase year-over-year[26] Guidance and Outlook - Guidewire raised its fiscal year 2026 outlook based on strong sales momentum and performance exceeding expectations[2] - The company expects ending ARR for Q2 FY 2026 to be between $1,107 million and $1,113 million[9] - Total revenue guidance for FY 2026 is projected between $1,403 million and $1,419 million[9] - GAAP income from operations outlook for Fiscal Year 2026 is projected to be $19 million for Q2, increasing to $88 million by the end of the fiscal year[29] - Non-GAAP income from operations for Fiscal Year 2026 is expected to rise from $68 million in Q2 to $282 million by the end of the fiscal year[29] Cash and Assets - As of October 31, 2025, Guidewire had $1,409.3 million in cash, cash equivalents, and investments[5] - Total current assets decreased to $1,357,024,000 from $1,507,415,000, a decline of 9.9%[20] - Cash and cash equivalents at the end of the period were $493,230,000, down from $824,754,000, a decrease of 40.2%[25] Expenses and Costs - Research and development expenses increased to $78,317,000, up from $68,880,000, reflecting a growth of 13.3%[22] - Stock-based compensation expense totaled $43,316,000, compared to $38,060,000 in the same period of 2024, an increase of 13.4%[23] - Stock-based compensation for Q2 of Fiscal Year 2026 is estimated at $47 million, totaling $185 million for the fiscal year[29] - Amortization of intangibles for Q2 of Fiscal Year 2026 is projected at $2 million, with a total of $9 million for the fiscal year[29] Share and Cash Flow - The number of diluted shares used in computing non-GAAP net income per share increased from 85,960,868 in Q3 2024 to 86,451,737 in Q3 2025[27] - Free cash flow for Q3 2025 was $(77,364) thousand, a decline from $(67,381) thousand in Q3 2024[27] - Net cash used in operating activities for Q3 2025 was $(67,398) thousand, compared to $(62,305) thousand in Q3 2024[27] - Capitalized software development costs for Q3 2025 were $(5,088) thousand, up from $(4,233) thousand in Q3 2024[27] Product Development - Guidewire launched new pricing and underwriting products at its annual customer conference, enhancing its cloud platform offerings[2]

Core Insights - Guidewire Software, Inc. (GWRE) is expected to report first-quarter fiscal 2026 results on December 3, with projected revenues between $315 million and $321 million, reflecting a 20.7% increase year-over-year [1] - The consensus estimate for earnings per share is 66 cents, unchanged over the past 60 days, compared to 43 cents per share in the same quarter last year [1][2] Financial Performance - GWRE has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 42.1% [2] - Shares of GWRE have increased by 4% over the past year, outperforming the Internet-Software industry's growth of 1% [4] Business Drivers - The company is experiencing strong momentum in its cloud business as insurers transition from legacy systems, with management describing the demand environment as "durable" [5] - There is solid deal volume across all tiers, particularly with Tier 1 insurers, and increasing international momentum in Europe, Latin America, and APAC [6] - The recent 10-year deal with Liberty Mutual is seen as a significant endorsement of Guidewire's platform [7] Revenue Expectations - Subscription and support revenues are projected at $218 million, with Annual Recurring Revenue (ARR) expected to be between $1.048 billion and $1.054 billion [8][9] - Subscription growth is anticipated to be strong due to accelerated cloud migrations and larger deal sizes [9] Operational Efficiency - The company aims to enhance cloud operations efficiency, with non-GAAP operating income expected to be between $47 million and $53 million for the fiscal first quarter [11] - Non-GAAP gross margin for subscription and support is projected to remain strong at 71-72% [11] Challenges - Increasing investments in product enhancements and global macroeconomic conditions may pose challenges, with service revenues expected to moderate to $60 million [12]

Core Insights - Guidewire Software (GWRE) is expected to report quarterly earnings of $0.66 per share, reflecting a 53.5% increase year over year, with revenues projected at $317.24 million, a 20.7% increase from the previous year [1] Revenue Estimates - Analysts estimate 'Revenues- Services' at $59.81 million, indicating a 7.2% increase from the year-ago quarter [4] - 'Revenues- License' is forecasted to reach $39.53 million, representing a 5.8% increase year over year [4] - The consensus for 'Revenue- Subscription and support' stands at $217.95 million, showing a 28.4% increase from the previous year [4] Subscription and Support Revenue - 'Subscription Revenue' is predicted to be $202.41 million, reflecting a 32.4% increase year over year [5] - 'Term License Revenue' is expected to reach $38.44 million, indicating a 2.9% increase from the prior-year quarter [5] - 'Support Revenue' is projected at $15.74 million, suggesting a decrease of 6.8% year over year [5] Gross Profit Estimates - Analysts predict 'Gross profit- Subscription and support' to be $153.69 million, compared to $115.72 million in the same quarter last year [6] - 'Gross profit- Services' is expected to be $8.99 million, up from $6.19 million in the previous year [7] - The consensus for 'Gross profit- License' is $39.93 million, compared to $36.49 million from the year-ago quarter [7] Market Performance - Guidewire Software shares have decreased by 10.8% in the past month, contrasting with the S&P 500 composite's increase of 0.4% [7]

Core Points - Guidewire will release its financial results for the fiscal quarter ended October 31, 2025 on December 3, 2025 after market close [1] - Management will host an audio webcast at 2:00 p.m. PT (5:00 p.m. ET) to discuss the results for the first quarter of fiscal year 2026 [1] - The live audio webcast will be accessible to the public through the Investor Relations website [1]

Core Insights - The big data industry focuses on companies that process, store, and analyze vast amounts of structured, unstructured, and semi-structured data, providing tools for data mining, transformation, visualization, and predictive analytics [1][3]. Company Summaries NVIDIA Corp. (NVDA) - NVIDIA is a leader in generative AI-powered GPUs, benefiting from a booming data center business driven by strong demand from hyperscalers and enterprise customers [7][8]. - The company has an expected revenue growth rate of 33% and earnings growth rate of 40% for the next year, with a consensus estimate for earnings improving by 0.6% over the last 30 days [9]. - The short-term average price target indicates a potential increase of 20.8% from the last closing price of $193.80, with a maximum upside of 80.6% and a downside of 48.4% [10]. Dell Technologies Inc. (DELL) - Dell is experiencing strong demand for AI servers, securing $8.2 billion in AI server orders in the last quarter, which has built a strong backlog [11][12]. - The expected revenue growth rate is 7% and earnings growth rate is 18.4% for the next year, with a consensus estimate for earnings improving by 1.2% over the last 30 days [14]. - The short-term average price target suggests a potential increase of 17.9% from the last closing price of $140.71, with a maximum upside of 42.1% and a downside of 7.6% [14]. Palantir Technologies Inc. (PLTR) - Palantir's AI strategy integrates its Foundry and Gotham platforms, promoting AI adoption across government and commercial sectors, particularly in defense and healthcare [15][16]. - The expected revenue growth rate is 41.1% and earnings growth rate is 43% for the next year, with a consensus estimate for earnings improving by 20.9% in the last 30 days [19]. - The short-term average price target indicates a potential increase of 4.6% from the last closing price of $184.17, with a maximum upside of 38.5% and a downside of 72.9% [19]. Fair Isaac Corp. (FICO) - Fair Isaac is experiencing strong growth in its Scores and Software segments, with advancements in credit modeling enhancing predictive accuracy [20][21]. - The expected revenue growth rate is 19.7% and earnings growth rate is 31.3% for the current year, with a consensus estimate for earnings improving by 3.6% in the last 30 days [22]. - The short-term average price target suggests a potential increase of 12% from the last closing price of $1,777.91, with a maximum upside of 35% and a downside of 41.1% [22]. Guidewire Software Inc. (GWRE) - Guidewire is benefiting from its cloud platform, winning 19 deals in the fourth quarter, including significant contracts with Tier 1 insurers [23][24]. - The expected revenue growth rate is 16.3% and earnings growth rate is 12.8% for the current year, with a consensus estimate for earnings improving by 1.7% in the last 60 days [25]. - The short-term average price target indicates a potential increase of 24.5% from the last closing price of $200.97, with a maximum upside of 51.8% and a downside of 20.4% [25].

Core Viewpoint - Guidewire Software Inc. (NYSE:GWRE) has shown mixed short-term performance with a 0.87% decrease in share price, while experiencing a 14.89% increase over the past year, prompting long-term shareholders to consider the company's price-to-earnings (P/E) ratio [1] Group 1: Company Performance - Guidewire Software's shares are currently trading at $226.00, reflecting a 2.87% decline over the past month [1] - The company has a P/E ratio of 281.47, which is significantly higher than the software industry's aggregate P/E ratio of 118.28 [6] Group 2: P/E Ratio Analysis - A lower P/E ratio may indicate that shareholders do not expect better future performance or that the company is undervalued [5] - The high P/E ratio of Guidewire Software suggests that it may be overvalued, despite the potential for better future performance compared to its industry group [6] - The P/E ratio should be used cautiously as it can indicate undervaluation or weak growth prospects [10]