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Examining the Future: Guidewire Software's Earnings Outlook

Guidewire Software (NYSE:GWRE) is gearing up to announce its quarterly earnings on Wednesday, 2025-12-03. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Guidewire Software will report an earnings per share (EPS) of $0.46.

Investors in Guidewire Software are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.37, leading to a 20.15% increase in the share price the following trading session.

Here's a look at Guidewire Software's past performance and the resulting price change:

Quarter Q4 2025 Q3 2025 Q2 2025 Q1 2025
EPS Estimate 0.47 0.47 0.51 0.30
EPS Actual 0.84 0.88 0.51 0.43
Price Change % 20.00 16.00 -7.00 -14.00

Performance of Guidewire Software Shares

Shares of Guidewire Software were trading at $212.31 as of November 28. Over the last 52-week period, shares are up 2.51%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Guidewire Software

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Guidewire Software.

Guidewire Software has received a total of 11 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $277.45, the consensus suggests a potential 30.68% upside.

Comparing Ratings Among Industry Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Unity Software, Circle Internet Group and Figma, three prominent industry players, providing insights into their relative performance expectations and market positioning.

  • Analysts currently favor an Neutral trajectory for Unity Software, with an average 1-year price target of $44.68, suggesting a potential 78.96% downside.
  • Analysts currently favor an Buy trajectory for Circle Internet Group, with an average 1-year price target of $129.25, suggesting a potential 39.12% downside.
  • Analysts currently favor an Neutral trajectory for Figma, with an average 1-year price target of $65.75, suggesting a potential 69.03% downside.

Summary of Peers Analysis

Within the peer analysis summary, vital metrics for Unity Software, Circle Internet Group and Figma are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Guidewire Software Outperform 22.32% $231.81M 3.68%
Unity Software Neutral 5.40% $350.28M -3.95%
Circle Internet Group Buy 65.95% $162.85M 7.95%
Figma Neutral 38.03% $190.29M -88.24%

Key Takeaway:

Guidewire Software ranks highest in Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Guidewire Software is at the bottom compared to its peers.

Get to Know Guidewire Software Better

Guidewire Software provides cloud-based software solutions for property and casualty insurers. The flagship product, InsuranceSuite is a system of record and comprises ClaimCenter, a claims management system; PolicyCenter, a policy management system including policy definitions, quotas, issuance, maintenance, and renewal; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a midmarket offering, as well as a variety of other add-on applications and services.

Breaking Down Guidewire Software's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Guidewire Software's remarkable performance in 3 months is evident. As of 31 July, 2025, the company achieved an impressive revenue growth rate of 22.32%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Guidewire Software's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 14.57%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Guidewire Software's ROE stands out, surpassing industry averages. With an impressive ROE of 3.68%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Guidewire Software's ROA excels beyond industry benchmarks, reaching 1.99%. This signifies efficient management of assets and strong financial health.

Debt Management: Guidewire Software's debt-to-equity ratio stands notably higher than the industry average, reaching 0.49. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Guidewire Software visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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