📊 GWRE Key Takeaways
Is Guidewire Software, Inc. (GWRE) a Good Investment?
Guidewire demonstrates solid 22.6% revenue growth and a fortress balance sheet, but fundamental quality concerns undermine the growth narrative. The 1243% net income spike appears driven by non-operational items rather than core business improvement, while weak operating cash flow (6.4% of revenue) and poor returns on capital (ROE 6.1%, ROA 3.4%) suggest operational leverage is lagging despite strong gross margins.
Guidewire is delivering strong top-line growth with high gross margins and a return to profitability. Liquidity is robust and leverage is moderate, supporting continued investment while remaining free-cash-flow positive. Sustained upside depends on expanding operating margins and improving cash conversion.
Why Buy Guidewire Software, Inc. Stock? GWRE Key Strengths
- Robust revenue growth of 22.6% YoY in prepackaged software sector
- Exceptional balance sheet with 2.93x current ratio and 0.48x debt-to-equity ratio
- Strong gross margin of 63.8% reflects pricing power and efficient service delivery
- Positive free cash flow of $36.5M with $407.9M cash reserves provides financial flexibility
- 22.6% YoY revenue growth with 63.8% gross margin
- Return to positive operating and net income with sharp YoY improvement
- Strong liquidity (2.93x current ratio) and positive FCF
GWRE Stock Risks: Guidewire Software, Inc. Investment Risks
- Operating cash flow margin of only 6.4% versus 13.2% net margin indicates significant earnings quality concerns and potential non-operational income
- Low return on capital metrics (ROE 6.1%, ROA 3.4%) suggest capital is not being deployed efficiently despite revenue growth
- Operating margin of 8.2% is weak for software sector; suggests operational scaling challenges despite gross margin strength
- Operating cash flow of $44.6M is stagnant versus prior period cash generation despite 22.6% revenue growth
- Operating margin remains modest (8.2%) and net margin likely benefits from non-operating items
- Cash conversion is moderate (5.3% FCF margin; OCF below NI)
- Interest coverage of 4.3x leaves limited buffer if conditions tighten
Key Metrics to Watch
- Operating cash flow growth relative to revenue growth - critical indicator of earnings quality and sustainability
- Operating margin expansion - must demonstrate operating leverage improvement in coming quarters
- Composition of net income - need to quantify recurring versus non-recurring items driving the 1243% earnings spike
- Operating margin
- Free cash flow margin
Guidewire Software, Inc. (GWRE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.93x current ratio provides a solid financial cushion.
GWRE Profit Margin, ROE & Profitability Analysis
GWRE vs Technology Sector: How Guidewire Software, Inc. Compares
How Guidewire Software, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Guidewire Software, Inc. Stock Overvalued? GWRE Valuation Analysis 2026
Based on fundamental analysis, Guidewire Software, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Guidewire Software, Inc. Balance Sheet: GWRE Debt, Cash & Liquidity
GWRE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Guidewire Software, Inc.'s revenue has grown significantly by 62% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.36 indicates the company is currently unprofitable.
GWRE Revenue Growth, EPS Growth & YoY Performance
GWRE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $289.5M | $9.1M | $-0.34 |
| Q1 2026 | $262.9M | $9.1M | $0.11 |
| Q3 2025 | $240.7M | -$5.5M | $-0.07 |
| Q2 2025 | $240.9M | $9.1M | $0.12 |
| Q1 2025 | $207.4M | $9.1M | $0.11 |
| Q3 2024 | $207.5M | -$5.5M | $-0.07 |
| Q2 2024 | $232.6M | -$9.2M | $-0.11 |
| Q1 2024 | $195.3M | -$27.1M | $-0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Guidewire Software, Inc. Dividends, Buybacks & Capital Allocation
GWRE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Guidewire Software, Inc. (CIK: 0001528396)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776112343.xml | View → |
| Apr 6, 2026 | 4 | xslF345X06/wk-form4_1775511268.xml | View → |
| Mar 31, 2026 | 4 | xslF345X06/wk-form4_1774993554.xml | View → |
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774387876.xml | View → |
| Mar 18, 2026 | 4 | xslF345X06/wk-form4_1773864431.xml | View → |
❓ Frequently Asked Questions about GWRE
What is the AI rating for GWRE?
Guidewire Software, Inc. (GWRE) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 64% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GWRE's key strengths?
Claude: Robust revenue growth of 22.6% YoY in prepackaged software sector. Exceptional balance sheet with 2.93x current ratio and 0.48x debt-to-equity ratio. ChatGPT: 22.6% YoY revenue growth with 63.8% gross margin. Return to positive operating and net income with sharp YoY improvement.
What are the risks of investing in GWRE?
Claude: Operating cash flow margin of only 6.4% versus 13.2% net margin indicates significant earnings quality concerns and potential non-operational income. Low return on capital metrics (ROE 6.1%, ROA 3.4%) suggest capital is not being deployed efficiently despite revenue growth. ChatGPT: Operating margin remains modest (8.2%) and net margin likely benefits from non-operating items. Cash conversion is moderate (5.3% FCF margin; OCF below NI).
What is GWRE's revenue and growth?
Guidewire Software, Inc. reported revenue of $691.7M.
Does GWRE pay dividends?
Guidewire Software, Inc. does not currently pay dividends.
Where can I find GWRE SEC filings?
Official SEC filings for Guidewire Software, Inc. (CIK: 0001528396) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GWRE's EPS?
Guidewire Software, Inc. has a diluted EPS of $1.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GWRE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Guidewire Software, Inc. has a BUY rating with 64% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is GWRE stock overvalued or undervalued?
Valuation metrics for GWRE: ROE of 6.1% (sector avg: 22%), net margin of 13.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy GWRE stock in 2026?
Our dual AI analysis gives Guidewire Software, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GWRE's free cash flow?
Guidewire Software, Inc.'s operating cash flow is $44.6M, with capital expenditures of $8.2M. FCF margin is 5.3%.
How does GWRE compare to other Technology stocks?
Vs Technology sector averages: Net margin 13.2% (avg: 18%), ROE 6.1% (avg: 22%), current ratio 2.93 (avg: 2.5).