Guidewire Software (GWRE) Traded Lower Along with Peers

Group 1: Market Performance - The BBH Select Series – Mid Cap ETF decreased by 3.9% in Q4 2025, underperforming the Russell Midcap Index, which returned 0.2% [1] - The year was marked by the outperformance of unprofitable and highly volatile companies, with healthcare and materials being the top-performing sectors in Q4, while communication services and real estate sectors declined [1] Group 2: Guidewire Software, Inc. Overview - Guidewire Software, Inc. (NYSE:GWRE) is a leading provider of cloud-based software for property and casualty (P&C) insurance companies, with a market capitalization of $13.45 billion [2] - The stock closed at $158.93 per share on March 10, 2026, delivering a 21.87% return in the past month but losing 9.90% over the past twelve months [2] Group 3: Performance Analysis of Guidewire Software, Inc. - Guidewire was one of the largest detractors to performance in Q4 2025, declining by 12.6% during the quarter despite strong fundamental performance [3] - The company reported annual recurring revenue (ARR) growth of +21% in constant currency, the fastest growth since it began reporting this metric in 2020, and subscription revenue growth of +36% with 82% incremental margins [3] - Full-year guidance was raised for all metrics, and the introduction of new modules, PricingCenter and UnderwritingCenter, is expected to enhance customer opportunities [3] - Concerns about AI commoditizing software coding have negatively impacted the software sector, but Guidewire is positioned to benefit from increased adoption of its cloud-based solutions [3]