Guidewire Software Inc. reported first‑quarter fiscal 2026 revenue of $332.6 million, up 27% from $262.9 million a year earlier. The figure surpassed consensus estimates of $317–$323 million, a beat of roughly $10–$16 million, driven by robust demand for its cloud‑based policy‑administration and claims‑management platforms.
GAAP diluted earnings per share were $0.36, exceeding the consensus estimate of $0.61–$0.625 for non‑GAAP EPS—a beat of $0.25–$0.27. The upside was largely a result of disciplined cost management and a favorable mix shift toward higher‑margin subscription revenue, which offset the impact of a modest increase in support‑service costs.
Revenue growth was concentrated in the subscription and support segment, which grew 31% to $210 million, and the policy‑administration segment, which grew 18% to $95 million. Gross margin for the subscription and support line rose to 73% from 71% in the prior year, reflecting pricing power and scale. Operating income increased to $45 million, up 12% YoY, as the company leveraged its expanding customer base to spread fixed costs more efficiently.
Management raised its full‑year 2026 revenue guidance to $4.40 billion from $4.14 billion, and adjusted operating‑income guidance to $2.15 billion from $1.95 billion. The revisions signal confidence that the momentum in cloud adoption and AI‑driven product enhancements will continue to accelerate, and that cost controls will sustain margin expansion.
CEO Mike Rosenbaum said the quarter “demonstrates the strength of our cloud platform and the rapid adoption of our AI‑enhanced solutions.” CFO Jeff Cooper added that the results “come in above the high end of our outlook on all metrics and give us the confidence to raise our full‑year guidance.”
Investors reacted positively to the earnings beat and guidance upgrade, citing the company’s continued success in transitioning to a subscription model and its strategic investments in generative AI as key drivers of future growth.
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