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Guidewire Software, Inc. GWRE reported non-GAAP earnings per share of $1.17 for second-quarter fiscal 2026 (ended Jan. 31, 2026) compared with 51 cents in the same period last year. Earnings surpassed the Zacks Consensus Estimate of 77 cents.
The company reported revenues of $359.1 million, up 24% year over year. Revenues beat the Zacks Consensus Estimate by 4.8%. The figure also surpassed the company’s guided range of $339-$345 million. This uptick was driven by solid momentum across all business segments.
Management stated that the company delivered another strong quarter marked by consistent execution, robust growth and sustained demand for large, multi-year deals. Management added that momentum is improving as artificial intelligence helps modernize core systems, speed up product development, and strengthen relationships with customers and partners.
The company is raising its fiscal year outlook across all metrics, supported by better-than-expected second-quarter results and continued strength in the sales pipeline.
Guidewire Software, Inc. price-consensus-eps-surprise-chart | Guidewire Software, Inc. Quote
As of Jan. 31, 2026, annual recurring revenue (ARR) was $1.121 billion, up 22% year over year.
GWRE expects ARR for fiscal 2026 to be in the range of $1.229 billion to $1.237 billion, indicating an increase of 18% to 19% year over year.
Driven by strong second-quarter performance, GWRE expects total revenues for fiscal 2026 to be between $1.438 billion and $1.448 billion compared with the prior expectation of $1.403 billion and $1.419 billion. The company reported total revenues of $1.202 billion in fiscal 2025.
Subscription and support revenue is projected to be between $962 million and $966 million.
GAAP operating income is anticipated between $100 million and $110 million, and non-GAAP operating income between $293 million and $303 million.
Operating cash flow is expected to be in the range of $360 million to $375 million.
Shares of the company grew around 5% in the after-market trading session on March 5, 2026. In the past year, the stock has lost 11.8% compared with the Internet Software industry’s decline of 4.5%.
The subscription and support segment’s revenues (66.1% of total revenues) soared 33.4% from the year-ago quarter's level to $237.2 million.
License’s revenues (16.6%) were down 6.5% year over year to $59.5 million.
Services’ revenues (17.3%) jumped 30.1% year over year to $62.4 million.
Non-GAAP gross margin expanded to 67.6% from 65.2% on a year-over-year basis. The subscription and support segment’s gross margin increased to 75% from 69.2% while the License segment’s gross margin was 99.3% compared with 98.6% in the year-ago quarter. Services’ non-GAAP gross margin was 8.9% compared with 6.3% a year ago.
Total operating expenses increased 15.3% year over year to $193.1 million. Non-GAAP operating income was $87.4 million compared with $53.9 million in the year-ago quarter.
As of Jan. 31, cash and cash equivalents and short-term investments were $919.2 million compared with $1,409.3 million as of Oct. 31, 2025.
Driven by strong collections, GWRE used $112.1 million in cash from operations in the quarter under discussion, while free cash flow was nearly $105.7 million.
For the third quarter of fiscal 2026, Guidewire expects ending ARR to be between $1.144 billion and $1.150 billion.
Subscription and support revenue is projected in the range of $239 million to $243 million, while total revenue is anticipated to be between $352 million and $358 million.
GAAP operating income is expected to range from $11 million to $17 million, and non-GAAP operating income is projected between $59 million and $65 million.
Guidewire currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Autodesk ADSK reported fourth-quarter fiscal 2026 non-GAAP earnings of $2.85 per share, which beat the Zacks Consensus Estimate by 8.37% and increased 25% year over year.
The company reported revenues of $1.95 billion, which beat the consensus mark by 2.48% and grew 19% year over year, both on a reported and constant currency (cc) basis.
Box BOX reported fourth-quarter fiscal 2026 non-GAAP earnings of 49 cents per share, which increased 16.7% year over year. The figure surpassed the Zacks Consensus Estimate by 48.48%.
Total revenues of $305.9 million beat the consensus mark by 0.61%. The top line increased 9% year over year on a reported basis and 8% on a constant-currency (cc) basis.
Digital Turbine APPS reported third-quarter fiscal 2026 non-GAAP earnings of 16 cents per share, which beat the Zacks Consensus Estimate by 77.78%. The company reported non-GAAP earnings of 5 cents in the year-ago quarter.
The company reported non-GAAP revenues of $151.4 million, which increased 12% on a year-over-year basis. The growth was driven by strong demand, expanding global supply and great execution by the team.
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This article originally published on Zacks Investment Research (zacks.com).
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