Guidewire Software (GWRE) Q4 2026 earnings summary

Executive summary

• Achieved record fourth quarter and fiscal year with strong deal momentum, product innovation in AI and cloud, and lowest ARR gross attrition rate since inception.

• Annual Recurring Revenue (ARR) reached $1.242 billion, up 19% year-over-year, exceeding guidance; fully ramped ARR grew 22%.

• Major wins included long-term cloud migration agreements with Nationwide, MAPFRE US, and AF Group, and significant traction for ProNavigator and PricingCenter.

• AI-driven capabilities are now embedded in core workflows, with rapid integration and commercial traction for ProNavigator.

• Share repurchase program nearly completed, with over $600 million in shares bought back, reflecting confidence in business durability.

Financial highlights

• Total revenue for FY26 was $1.475 billion, up 23% year-over-year; Q4 revenue was $411 million, up 15%.

• Subscription and support revenue grew 33% year-over-year to $971 million for FY26; Q4 subscription and support revenue up 32% to $267 million.

• Gross profit reached $990 million, up 25% year-over-year, with an overall gross margin of 67%.

• Operating income for FY26 was $340 million non-GAAP (up 63%); GAAP operating income was $149.9 million.

• Ended FY26 with $1.2 billion in cash equivalents and investments.

Outlook and guidance

• Fiscal 2027 ARR expected between $1.45 billion and $1.46 billion, representing 18% constant currency growth at midpoint.

• Total revenue guidance for fiscal 2027 is $1.707–$1.727 billion; subscription revenue expected to grow ~31%.

• Subscription and support gross margins projected at 75–76%, above prior FY 2028 targets.

• Non-GAAP operating income expected between $403 million and $423 million; cash flow from operations forecasted at $445–$465 million.

• Q1 FY27 guidance: ending ARR $1,253–$1,259 million; total revenue $372–$378 million.