Guidewire(US:GWRE) ZACKS·2025-12-02 16:26Core 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]