Clearwater Analytics (CWAN) Q3 Earnings Lag Estimates

Core Insights - Clearwater Analytics reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.15 per share, but showing an increase from $0.12 per share a year ago [1][2] - The company posted revenues of $205.11 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 0.62% and significantly up from $115.83 million year-over-year [3] - The stock has underperformed, losing approximately 36.9% since the beginning of the year, while the S&P 500 has gained 15.1% [4] Earnings Performance - The earnings surprise for the recent quarter was -6.67%, following a previous quarter where the earnings were also below expectations with a surprise of -7.69% [2] - Over the last four quarters, Clearwater Analytics has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2][3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $216.31 million, and for the current fiscal year, it is $0.55 on revenues of $728.95 million [8] - The estimate revisions trend for Clearwater Analytics was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] Industry Context - Clearwater Analytics operates within the Zacks Internet - Software industry, which is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable industry outlook [9] - The performance of Clearwater Analytics may be influenced by the overall industry trends, as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]