Analysts Raise Price Targets on Guidewire After Stellar Q4

Author: Lucas Young Updated: 09-05-2025 03:27 PM

Guidewire Software Surpasses Expectations with Strong Q4 Results

Guidewire Software, Inc (NASDAQ: GWRE) recently reported impressive fourth-quarter results that exceeded analyst expectations. This notable achievement has garnered attention and praise from financial analysts across the board.

Outstanding Earnings and Revenue Performance

In the latest earnings report, Guidewire Software announced earnings of $0.84 per share, surpassing the consensus estimate of $0.64 per share. Furthermore, the company recorded quarterly revenue of $356.57 million, which also exceeded analyst forecasts of $337.86 million.

Positive Future Outlook for FY2026

Looking ahead, Guidewire Software anticipates a significant increase in sales for FY2026, forecasting between $1.385 billion and $1.405 billion, contrasting sharply with earlier estimates of $1.184 billion. This optimistic outlook indicates the company's strategic positioning and customer engagement.

CEO Insights and Strategic Deals

Mike Rosenbaum, the CEO of Guidewire, expressed enthusiasm about the strong finish to the fiscal year. He noted, "We were thrilled to close the year with an outstanding fourth quarter, executing 19 cloud deals and surpassing $1 billion in Annual Recurring Revenue (ARR)." This quarter was marked by a landmark 10-year agreement with a top-tier insurer, showcasing the company's reputation and the growing value of its platform.

Stock Performance Based on New Analyst Ratings

Following these promising earnings, Guidewire Software's stock saw an increase of 18.5%, closing at $257.52. Analysts responded positively, adjusting their price targets upward as follows:

RBC Capital's Rishi Jaluria maintained an Outperform rating and increased the target from $290 to $300.
Oppenheimer's Ken Wong also kept an Outperform rating while raising the price target from $275 to $300.
Stifel's Parker Lane retained a Buy rating and elevated the target from $270 to $300.
Wells Fargo's Michael Turrin maintained his Overweight rating with an increased target from $265 to $275.
Goldman Sachs analyst Adam Hotchkiss maintained a Buy rating while boosting the target from $270 to $305.
Raymond James' Alexander Sklar reiterated his Outperform rating and raised the target from $255 to $275.

Market Sentiment and Analyst Recommendations

The increased price targets and optimistic outlook suggest a bullish sentiment toward Guidewire Software among analysts. Investors looking into GWRE stock can benefit from the heightened confidence reflected in these ratings.

Frequently Asked Questions

What were Guidewire's earnings per share for Q4?

Guidewire reported earnings of $0.84 per share for the fourth quarter, surpassing expectations.

What is the projected sales forecast for FY2026?

Guidewire expects FY2026 sales to be between $1.385 billion and $1.405 billion, which is significantly higher than previous estimates.

What key deal did Guidewire complete recently?

Guidewire secured a 10-year agreement with a notable Tier-1 insurer, underscoring its platform's maturity.

How did analysts react to Guidewire's Q4 results?

Analysts raised their price targets for Guidewire significantly, reflecting their positive outlook on the company's performance.

What was the stock price movement after the earnings report?

After the earnings announcement, Guidewire's stock rose by 18.5%, reaching a closing price of $257.52.

About The Author

Even at just 28 years old, Lucas Young has made a name for himself as a writer and financial expert. Lucas is a gifted communicator of difficult financial ideas and has written a number of well-received books and articles that appeal to both new and experienced investors. The financial world has come to rely on his perceptive analysis and useful counsel. Many people have been enabled to make wise investment decisions by Lucas's commitment to financial literacy and his ability to demystify the complexities of the market. Lucas is still dedicated to advising and teaching people on their financial journeys as he shares his knowledge.

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