Guidewire Software
GWRE
$192.76
-4.14%
Guidewire Software provides cloud-based software solutions for property and casualty insurers, with its flagship InsuranceSuite comprising ClaimCenter, PolicyCenter, and BillingCenter, along with InsuranceNow for midmarket clients. As a market leader in P&C insurance software, Guidewire is distinct for its deep industry specialization and successful transition to a cloud subscription model. The current investor narrative centers on accelerating cloud adoption and international expansion, highlighted by a recent long-term deal with Sompo to modernize worldwide operations, which validates its platform strategy and drives debate on growth sustainability versus valuation concerns.…
GWRE
Guidewire Software
$192.76
Related headlines
GWRE 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Guidewire Software's 12-month outlook, with a consensus price target around $210.86 and implied upside of +9.4% versus the current price.
Average Target
$210.86
0 analysts
Implied Upside
+9.4%
vs. current price
Analyst Count
—
covering this stock
Price Range
$137 - $258
Analyst target range
Guidewire is covered by 14 analysts, with a consensus recommendation of 'Buy' and a mean recommendation score of 1.625 (where 1 is Strong Buy and 5 is Sell). The average target price is $202.43, which is 1.7% below the current price of $205.85, implying a slight downside of -1.7%. The distribution includes 10 recent ratings from major firms like JP Morgan (Overweight), BTIG (Buy), and Goldman Sachs (Buy), all maintaining positive stances, indicating a bullish sentiment among analysts.
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GWRE Technical Analysis
Guidewire's stock has experienced a volatile year, with a 1-year price change of -5.88%, yet it has rebounded strongly from its 52-week low of $102.30 to currently trade at $205.85, which is 75.5% of the 52-week range (between low and high of $272.60). This positioning near the upper end of the range suggests renewed momentum, though the stock remains below its 52-week high, indicating potential resistance overhead. The 6-month change of +41.65% underscores a significant recovery from the lows seen in June 2026.
Beta
0.93
0.93x market volatility
Max Drawdown
-60.8%
Largest decline past year
52-Week Range
$102-$273
Price range past year
Annual Return
-11.4%
Cumulative gain past year
| Period | GWRE Return | S&P 500 |
|---|---|---|
| 1m | +22.5% | +1.0% |
| 3m | +27.5% | +1.1% |
| 6m | +14.1% | +13.8% |
| 1y | -11.4% | +19.5% |
| ytd | +2.7% | +12.2% |
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GWRE Fundamental Analysis
Guidewire's revenue growth has accelerated, with the most recent quarter (Q3 FY2026, ending April 30, 2026) showing revenue of $372.5 million, a 26.9% YoY increase, up from $293.5 million in the same quarter last year. This growth is driven by subscription revenue of $232.1 million, which now constitutes 62% of total revenue, while service revenue contributed $71.8 million and support $12.6 million. The multi-quarter trend shows sequential acceleration from $332.6 million in Q1 FY2026 to $359.1 million in Q2 and $372.5 million in Q3, indicating strong demand for cloud offerings.
Quarterly Revenue
$372541000.0B
2026-04
Revenue YoY Growth
+26.9%
YoY Comparison
Gross Margin
63.5%
Latest Quarter
Free Cash Flow
$254977000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is GWRE Overvalued?
Given that Guidewire is profitable with trailing EPS of $0.0037, the PE ratio is the primary valuation metric, but it is extremely high at 272.6x trailing, while the forward PE is 50.3x, implying the market expects significant earnings growth. The gap between trailing and forward PE suggests a massive anticipated improvement in profitability, which is supported by the company's transition to cloud subscriptions and operating leverage. Alternatively, the PS ratio of 15.8x provides a more stable comparison, but the PE is more appropriate given positive net income.
PE
272.6x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 50x~233x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
219.8x
Enterprise Value Multiple