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

Core Insights - Guidewire Software (GWRE) reported revenue of $293.51 million for the quarter ended April 2025, marking a year-over-year increase of 22% and exceeding the Zacks Consensus Estimate of $285.72 million by 2.73% [1] - The company achieved an EPS of $0.88, significantly higher than the $0.26 reported a year ago, resulting in an EPS surprise of 91.30% compared to the consensus estimate of $0.46 [1] Financial Performance Metrics - Annual recurring revenue reached $960 million, surpassing the average estimate of $944.40 million by four analysts [4] - Subscription and support revenue was reported at $181.82 million, exceeding the average estimate of $178.14 million by five analysts, reflecting a year-over-year increase of 31.8% [4] - License revenue amounted to $57.23 million, slightly above the average estimate of $55.33 million, with a year-over-year change of 1.8% [4] - Services revenue was reported at $54.45 million, exceeding the average estimate of $52 million, representing a year-over-year increase of 17.1% [4] - Gross profit from subscription and support was $124.41 million, above the average estimate of $120.51 million [4] - Gross profit from services was $1.95 million, below the average estimate of $3.92 million [4] - Gross profit from license revenue was $56.34 million, exceeding the average estimate of $54.87 million [4] Stock Performance - Over the past month, Guidewire Software's shares returned +2.3%, while the Zacks S&P 500 composite saw a +4.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]