These Analysts Boost Their Forecasts On Guidewire Software Following Upbeat Q4 Results

Guidewire Software, Inc. GWRE reported better-than-expected fourth-quarter financial results on Thursday.

Total revenue rose 8% Y/Y to $291.5 million, beating the consensus of $283.9 million. Subscription and support revenue increased by 29% Y/Y to $151.8 million, while license revenue decreased by 12% Y/Y to $88.9 million. Also, Services revenue fell by 2% to $50.8 million in the quarter.

Adjusted income from operations increased to $49.0 million from $44.7 million a year ago quarter. Adjusted EPS of 62 cents exceeded the consensus of 54 cents.

Mike Rosenbaum, chief executive officer, said, "We enter the new fiscal year positioned well to continue accelerating modernization programs in the P&C industry and delivering increasing value to P&C insurers' drive for greater agility and innovation."

Guidewire projects first-quarter total revenue of $251 million – $257 million ($236.1 million estimate) and expects FY 2025 revenue of $1.135 billion – $1.149 billion (vs. street view of $1.093 billion). The company expects an ARR of $869 million – $874 million in the first quarter and $995 million to $1.005 billion in FY25.

Guidewire Software shares fell 2.1% to close at $143.93 on Thursday.

These analysts made changes to their price targets on Guidewire Software following earnings announcement.

• Baird analyst Joe Vruwink maintained Guidewire Software with an Outperform and raised the price target from $165 to $175.
• Oppenheimer analyst Ken Wong maintained the stock with an Outperform and raised the price target from $170 to $185.
• RBC Capital analyst Rishi Jaluria maintained Guidewire Software with an Outperform and boosted the price target from $170 to $180.

Considering buying GWRE stock? Here’s what analysts think: