Guidewire Software (GWRE) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

For the quarter ended January 2026, Guidewire Software (GWRE) reported revenue of $359.1 million, up 24.1% over the same period last year. EPS came in at $1.17, compared to $0.51 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $342.52 million, representing a surprise of +4.84%. The company delivered an EPS surprise of +52.94%, with the consensus EPS estimate being $0.77.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Guidewire Software performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Annual recurring revenue: $1.12 billion compared to the $1.11 billion average estimate based on four analysts.
• Revenue- Subscription and support: $237.21 million compared to the $229.04 million average estimate based on five analysts. The reported number represents a change of +33.4% year over year.
• Revenue- License: $59.53 million versus $55.73 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -6.5% change.
• Revenue- Services: $62.36 million compared to the $57.95 million average estimate based on five analysts. The reported number represents a change of +30.1% year over year.
• Gross profit- Subscription and support: $173.28 million versus $163.97 million estimated by four analysts on average.
• Gross profit- License: $59.09 million versus the four-analyst average estimate of $54.39 million.
• Gross profit- Services: $-0.85 million versus $5.23 million estimated by three analysts on average.

View all Key Company Metrics for Guidewire Software here>>>

Shares of Guidewire Software have returned +16.4% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 
Guidewire Software, Inc. (GWRE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research