GWRE
Guidewire Software, Inc.
Next earnings Sep 2, 2026 (after close) · consensus $0.96 EPS, $411M rev
Last earnings -2.5% on 2026-06-04
$134.47
▲ +11.25%$134.47▼ -42.88%
over 1Y
L $102.69H $261.88
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+11.3%
1W+22.1%
1M-17.4%
3M-10.8%
YTD-28.3%
1Y-42.9%
Hold
Conviction
Horizon
Long (>12mo)
Street · 21 analysts
Buy
Guidewire's cloud transition is paying off with 23% growth and a swing to profit, but 133x earnings and 7.6x sales price in near-perfection.
Revenue $1.20B · FY2025
The read
Middling fundamentals and a rich price (~78% above fair value) leave little margin of safety — a wait-and-see.
Guidewire is the dominant core-systems software platform for the global property-and-casualty insurance industry, and its multi-year transition from licensed software to cloud subscriptions has reached the payoff phase. FY2025 revenue grew 22.6% to $1.20B, gross margin expanded to 62.5% (gross profit up 28.9%), and the company swung decisively to profitability — net income of $69.8M and EPS of $0.81, versus a -$6.10M loss the prior year and four straight years of losses before that. Operating cash flow surged 53.7% to $301M against trivial capex of $5.74M, confirming the high-quality, recurring-revenue, cloud-economics inflection.
The business quality is excellent: a sticky, mission-critical platform with high switching costs, accelerating gross margins as cloud workloads scale, and a strong net-cash balance sheet ($698M cash against $399M debt, 0.87x liabilities/equity). The negative retained earnings (-$554M) are a legacy of the transition-era losses, not current health, and dilution is modest (shares up just 1.8%).
Is GWRE a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~90d expiry
- Long 100 shares @ ~134.47
- Short call 141 @ ~21.28 est
debit $11,319max +$2,781max −$11,318BE 113.19
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $743M | $813M | $905M | $980M | $1.20B |
| Gross profit | $390M | $377M | $458M | $583M | $752M |
| Operating income | -$106M | -$199M | -$149M | -$52.6M | $41.1M |
| Net income | -$66.5M | -$180M | -$112M | -$6.10M | $69.8M |
| Diluted EPS | -$0.79 | -$2.16 | -$1.36 | -$0.07 | $0.81 |
| Net margin | -8.9% | -22.2% | -12.4% | -0.6% | 5.8% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$10.9B
EV / EBITDA168.1
EV / Sales9.1
EV / FCF36.9
P / FCF37.9
PEG (trailing)0.13
Earnings yield0.6%
FCF yield2.6%
Quality & risk
ROIC (est.)1.7%
Free cash flow$295M
Total debt$399M
Net cash$299M
Altman Z-Score5.95 safe
Piotroski F-Score8/9
Capital returns
Buyback yield0.0%
Dividend yield (est.)—
Shareholder yield0.0%
Shares Δ YoY+1.8%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRoutine disclosure cadence — no material red flags in recent filings.
Recent filings
all on EDGAR ↗SCHEDULE 13G/AFiling2026-07-02open ↗4Period ending 2026-06-292026-06-29open ↗144Filing2026-06-29open ↗4Period ending 2026-06-222026-06-22open ↗4Period ending 2026-06-222026-06-22open ↗144Filing2026-06-22open ↗144Filing2026-06-22open ↗4Period ending 2026-06-152026-06-16open ↗4Period ending 2026-06-162026-06-16open ↗4Period ending 2026-06-162026-06-16open ↗4Period ending 2026-06-162026-06-16open ↗4Period ending 2026-06-162026-06-16open ↗
Frequently asked
- Is Guidewire Software, Inc. (GWRE) a buy?
- GWRE currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Guidewire's cloud transition is paying off with 23% growth and a swing to profit, but 133x earnings and 7.6x sales price in near-perfection.
- What is GWRE's fair value?
- A Modified-Graham model based on GWRE's SEC fundamentals estimates a fair value of about $30.25. It is an estimate from reported earnings, not a price target.
- Is GWRE overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, GWRE currently appears overvalued relative to its SEC-grounded earnings power.
- What is Guidewire Software, Inc.'s quality score?
- GWRE scores 60.100604762559826/100 (grade C+) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001528396, latest 10-Q filed 2026-06-05) · EODHD · Proprietary analysis · as of 6/21/2026, 8:52:02 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 4:52 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.