Guidewire Software announced that it has finished its prior share‑repurchase program and has authorized a new program to buy back up to $500 million of its common stock.
The earlier program, approved in September 2022, authorized $400 million and resulted in the retirement of 4,705,840 shares—about 5.63 % of the company’s outstanding shares—using $138.2 million of the original authorization.
The new program allows the company to repurchase shares at market price, with funding coming from cash, cash equivalents, working capital or operating cash flow, underscoring Guidewire’s strong liquidity position.
As of October 31 2025, Guidewire reported $1.409 billion in cash, cash equivalents and investments, giving it ample resources to support the buyback and other strategic initiatives.
In its most recent earnings, Guidewire posted revenue of $332.6 million, up 27 % year‑over‑year, driven by a 31 % increase in the subscription and support segment; gross margin for that segment rose to 73 % from 71 % the prior year, reflecting pricing power and scale.
CFO Jeff Cooper noted that the quarter’s results exceeded the high end of the company’s outlook on all metrics, giving management confidence to raise full‑year guidance, while CEO Mike Rosenbaum highlighted the strength of the cloud platform and rapid adoption of AI‑enhanced solutions.
The share‑repurchase authorization signals management’s confidence in Guidewire’s cash flow and balance‑sheet strength, and it aligns with the company’s strategy to invest in cloud and AI while returning capital to shareholders.
Market reaction has been mixed: some analysts upgraded their ratings, others maintained or lowered price targets, but the overall sentiment remains positive due to the strong earnings performance and strategic focus on cloud and AI.
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