At a glance
Guidewire Software Inc is worth $13.69B, about 102 times its fiscal 2026 earnings. Revenue grew 22.7% to $1.48B in fiscal 2026, with 9.4% kept as profit; over 5 years it has grown 14.7% a year. It pays no dividend; it spent $905.6M buying back its shares over FY2022–FY2026. The stock returned −34.0% over the past year with dividends reinvested and +5.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 38.0% in the 2020 crash (S&P 500: 33.7%) and 50.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 15 months after the lows.
The business in plain English
Guidewire makes the core software that property and casualty (P&C) insurers, the companies that cover cars, homes and businesses, use to run their operations. Its two main products, InsuranceSuite and InsuranceNow, act as an insurer's main record-keeping system for product design, pricing and rating, underwriting, policy administration, billing and claims. InsuranceSuite, the source of most new sales, has five core applications: PolicyCenter, ClaimCenter, BillingCenter, PricingCenter and UnderwritingCenter. Both run on the Guidewire Cloud Platform, hosted on Amazon Web Services. Customers range from global carriers to regional and local insurers.
Most revenue comes from cloud subscriptions. Guidewire generally prices core subscriptions on Direct Written Premium (DWP), the insurance premiums a customer manages on the platform, so fees track the size of the business on the system. First contracts usually run five years and then renew each year. The company also offers licenses for a set term, mainly to existing customers who run the software on their own servers, plus support and professional services such as implementation, generally billed monthly for time and materials. It reaches insurers through its global sales team and through system integrators, consulting firms that install large systems.
In the fiscal year ended July 31, 2026, revenue rose 22.7% to $1.48 billion. Subscriptions made up 62.1%, services 18.3%, licenses 15.9% and support 3.7%.
Price history
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GWRE -34.0% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Subscription | $915.8M | 62.1% |
| Services | $269.9M | 18.3% |
| License | $234.6M | 15.9% |
| Support | $55.1M | 3.7% |
Latest results
- In Q4 FY2026 (ended Jul 31, 2026), revenue was $411.1M, up 15.3% from a year earlier, and net income was $31.4M (-39.6%).
- For fiscal 2026, revenue was $1.48B (+22.7% year over year; +14.7% a year from FY2021 to FY2026) with a 9.4% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +14.7% good |
|---|---|
| Operating margin | 10.2% watch |
| Free cash flow margin | 25.6% good |
| Return on equity (FY2026) | 11.7% watch |
| Return on assets (FY2026) | 5.4% watch |
| Net cash (cash minus debt) | $537.2M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $743.3M | $-66.5M | $92.6M |
| FY2022 | $812.6M | $-180.4M | $-47.5M |
| FY2023 | $905.3M | $-111.9M | $32.6M |
| FY2024 | $980.5M | $-6.1M | $189.4M |
| FY2025 | $1.20B | $69.8M | $295.1M |
| FY2026 | $1.48B | $139.3M | $377.7M |
Valuation snapshot
| Market value | $13.69B |
|---|---|
| P/E ratio | 102.4 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Guidewire Software’s market value went from $3.63B at the end of 2016 to $13.69B on Oct 28, 2026, about 3.8 times as much; since the end of 2025 it is down 20%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $13.69B | -19.9% |
| 2025 | $17.09B | +21.4% |
| 2024 | $14.08B | +57.6% |
| 2023 | $8.93B | +74.4% |
| 2022 | $5.12B | -45.8% |
| 2021 | $9.46B | -12.3% |
| 2020 | $10.78B | +18.9% |
| 2019 | $9.06B | +39.4% |
| 2018 | $6.50B | +16.2% |
| 2017 | $5.60B | +54.3% |
| 2016 | $3.63B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| GWRE price data to Oct 28, 2026 | -17.0% | -34.0% | +24.7% | +5.9% | +11.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -17.0% |
| 2025 | +19.2% |
| 2024 | +54.6% |
| 2023 | +74.3% |
| 2022 | -44.9% |
| 2021 | -11.8% |
| 2020 | +17.3% |
| 2019 | +36.8% |
| 2018 | +8.0% |
| 2017 | +50.5% |
| 2016 | -18.0% |
| 2015 | +18.8% |
| 2014 | +3.2% |
| 2013 | +65.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 38% over that stretch · deepest drop along the way 38%, back to its old high 8.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 50% over that stretch · deepest drop along the way 50%, back to its old high 15.2 months after the low |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (25 read): 0 open-market purchases and 24 sales ($28.0M), 23 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 17, 2026 | Michael George Rosenbaum Chief Executive Officer, Director | sell (plan) | $10.4M |
| Sep 17, 2026 | John P Mullen President | sell | $5.7M |
| Sep 17, 2026 | Jeffrey Elliott Cooper Chief Financial Officer | sell (plan) | $3.4M |
| Sep 17, 2026 | James Winston King Chief Admin Officer, Gen Couns | sell (plan) | $1.7M |
| Oct 9, 2026 | James Winston King Chief Admin Officer, Gen Couns | sell (plan) | $1.5M |
Who owns it
Large shareholders (13G filings)
| BAMCO INC /NY/ | 10.8% | Jun 30, 2026 |
| BlackRock, Inc. | 10.2% | Jun 30, 2025 |
| Linonia Partners Fund LP | 9% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.45% | Mar 31, 2026 |
| Vanguard Capital Management | 5.3% | Mar 31, 2026 |
| Massachusetts Financial Services Company | 3.5% | Mar 31, 2026 |
ETFs with the most weight in GWRE
| PTEC Global X PropTech ETF | 7.83% |
| FINX Global X FinTech ETF | 4.1% |
| TMFM Motley Fool Mid-Cap Growth ETF | 3.72% |
| PTF Invesco Dorsey Wright Technology Momentum ETF | 3.57% |
| XMMO Invesco S&P MidCap Momentum ETF | 2.67% |
| QMOM Alpha Architect U.S. Quantitative Momentum ETF | 2.04% |
| FXL First Trust Technology AlphaDEX Fund | 1.78% |
| RFG Invesco S&P MidCap 400® Pure Growth ETF | 1.49% |
What could go wrong
- Tied to a few big insurers. Guidewire serves property and casualty insurers and relies on a relatively small number of them for much of its revenue. These customers hold strong bargaining power, and catastrophes that strain insurers could slow growth.
- Long, unpredictable sales cycles. Insurers vet core systems through long evaluations, due diligence and reference checks. Guidewire can spend significant time and money before a deal pays off, and seasonal patterns can make quarterly results swing.
- Cloud shift and long-term pricing commitments. Growth depends on moving license customers to cloud subscriptions. Long contracts lock in prices based on cost estimates that may change, and missing promised service levels could hurt results.
- AI fears and AI execution risks. Guidewire cites shifting investor views on AI, including fears it could displace existing software, as one factor behind swings in its stock price. Developing and using AI also carries regulatory, reputational and liability risks.
- Data breaches or cloud outages. Guidewire runs core systems holding insurers' data. A breach, including from increasingly sophisticated AI-accelerated cyberattacks, or an outage at a provider such as Amazon Web Services could harm its reputation and cost it customers.
- Volatile stock and convertible debt. Shares fell 34% in the year to October 28, 2026. The 2029 convertible notes, debt that can be swapped for shares, may also weigh on finances and the share price.
Recent events
- Major agreement signed; New debt or financial obligation; Investor presentation or announcement
- Other company announcement
- Executive or board change
- Executive or board change
- Quarterly results released
- Quarterly results released
- Other company announcement
- Shareholder vote results
- Quarterly results released
For income and retirement investors
Guidewire pays no dividend, and its annual report says it does not intend to pay one, so any return has to come from a rising share price. For income investors, that means no regular cash from the holding; spending money would have to come from trimming shares. The company returns cash through buybacks (repurchases of its own stock) instead, spending $906 million over fiscal 2022 to 2026, including $606 million in fiscal 2026. Even so, the share count fell just 1.6% between November 2021 and August 2026.
The stock has fallen hard in past downturns. It dropped 38% in the 2020 COVID crash and regained its prior level by November 27, 2020. In the 2022 bear market it fell 50% and did not recover until January 19, 2024, about 15 months after the low. In the year to October 28, 2026, it fell as much as 59.4% from a peak. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Guidewire make money?
Mainly by charging property and casualty insurers subscription fees for its cloud software. Guidewire generally prices core subscriptions on Direct Written Premium, the premiums an insurer manages on the platform, and first contracts usually last five years. In the fiscal year ended July 31, 2026, subscriptions made up 62.1% of $1.48 billion in revenue. Services such as implementation work added 18.3%, term licenses 15.9% and support 3.7%.
Does Guidewire pay a dividend?
No. Guidewire pays no dividend, and its annual report says it does not intend to pay one, so shareholder returns depend on the share price rising. The company repurchases stock instead: buybacks totaled about $906 million over fiscal 2022 to 2026, including $606 million in the year ended July 31, 2026. Even so, the share count fell just 1.6% between November 2021 and August 2026.
Is Guidewire profitable?
Yes, based on its fiscal year ended July 31, 2026. Net income was $139.3 million, or $1.63 per diluted share, on revenue of $1.48 billion, a 9.4% net margin. That roughly doubled the $69.8 million earned in fiscal 2025, which followed net losses in each of fiscal 2021 through 2024. Free cash flow, the cash left after running and investing in the business, was higher at $377.7 million.
How has Guidewire stock performed?
It has gained over the long run but fallen sharply over the past year. As of October 28, 2026, the share price had returned about 11.2% a year over 10 years and 5.9% a year over five years, but it was down 34% over one year and 17% year to date. At that date it traded at a price-to-earnings (P/E) ratio of 102.4, meaning the price was about 102 times fiscal 2026 earnings per share.
Does Guidewire have a lot of debt?
It has debt, but held more cash than debt as of July 31, 2026. Guidewire reported $678.1 million of total debt against $1.22 billion in cash and investments, leaving net cash (cash minus debt) of $537.2 million. Its borrowings include convertible senior notes due 2029, bonds that can be exchanged for shares. An October 27, 2026, filing reported a major agreement and a new debt or financial obligation, so the figures may have changed since then.