Guidewire Software (GWRE) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

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]