Guidewire revenue rises to $1.48B, profit $139M
GWRE delivered higher revenue, margins, and cash flow in 2026 while deploying significant capital to share repurchases and maintaining a strong net cash and investment position.
Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
10-K
Rhea-AI Filing Summary
Guidewire Software, Inc. (GWRE) reports strong growth and a return to consistent profitability for the fiscal year ended July 31, 2026, driven by its cloud-based P&C insurance platform. Total revenue was $1,475.4 million, up from $1,202.5 million in 2025 and $980.5 million in 2024, led by subscription and support revenue of $970.9 million.
Operating income rose to $149.9 million from $41.1 million, and net income increased to $139.3 million from $69.8 million, compared with a loss in 2024. Operating cash flow was a robust $389.7 million, while cash, cash equivalents, and investments totaled $1,215.3 million, down from $1,483.2 million as the company repurchased and retired common stock totaling $609.4 million.
Convertible senior notes, net, stood at $678.1 million, and total stockholders’ equity was $1,193.7 million with 81,992,467 shares outstanding as of July 31, 2026. The independent auditor issued unqualified opinions on both the <a href="https://bitcomme.com/tecsys-reports-financial-results-for-the-first-quarter-of-fiscal-2027/” title=”Tecsys Reports Financial Results for the First Quarter of Fiscal 2027″>financial statements and internal control over financial reporting and highlighted a single critical audit matter related to revenue recognition for software and cloud contracts with non-standard terms.
Positive
- Total revenue grew to $1,475.4 million, up from $1,202.5 million and $980.5 million in the prior two years, reflecting strong expansion in subscription and services lines.
- Net income reached $139.3 million versus $69.8 million in 2025 and a $6.1 million loss in 2024, indicating a sustained improvement in profitability.
- Operating cash flow was $389.7 million, rising from $300.9 million and $195.7 million in the prior two years, providing substantial internally generated liquidity.
- Subscription and support revenue increased to $970.9 million from $731.3 million and $549.1 million, underscoring ongoing adoption of cloud and recurring offerings.
Negative
- Cash, cash equivalents, and investments declined to $1,215.3 million from $1,483.2 million, partly reflecting $609.4 million of share repurchases and retirement of common stock.
- Accumulated deficit widened to $1,024.4 million from $554.2 million, driven by cumulative historical losses despite current-year profitability.
- Foreign currency swung to a $22.5 million loss in 2026 from a $16.7 million gain in 2025, adding volatility to other income (expense).
