Guidewire began fiscal 2025 on a strong note, highlighted by substantial revenue growth, increased cloud adoption, and improved operating efficiencies. The company successfully expanded its footprint among Tier 1 insurers and maintained robust subscription revenue growth. However, there were some concerns regarding churn rates and future margin expectations.

Company Guidance

In the earnings call for Guidewire's Q1 2025, detailed guidance was provided, highlighting robust financial performance and strategic advancements. The company reported an Annual Recurring Revenue (ARR) of $874 million, aligning with the high end of their outlook, and a significant 33% year-over-year growth in subscription and support revenue, reaching $170 million. Gross margins also saw improvement, with subscription and support gross margins hitting 70%, contributing to an overall gross margin of 63%. Total revenue surpassed $1 billion on a trailing 12-month basis. For the full fiscal year 2025, Guidewire maintains its ARR target between $995 million and $1.005 billion, with expectations for total revenue in the range of $1.155 billion to $1.167 billion. The company also anticipates subscription revenue to reach approximately $648 million and overall subscription and support revenue to hit $713 million. Operating income guidance was raised, with non-GAAP operating income projected to be between $164 million and $176 million. The call underscored the company's strategic focus on cloud solutions, particularly within Tier 1 insurance markets, and highlighted strong international momentum, notably with the Zurich Insurance Group and other global insurers.

Strong Q1 Performance

Guidewire reported a robust start to fiscal 2025 with total revenue of $263 million, surpassing expectations and marking a 27% year-over-year increase.

Record Subscription and Support Revenue Growth

Subscription and support revenue grew by 33% year-over-year, the highest growth rate in two years, reaching $170 million.

Expansion of Cloud Solutions

Guidewire secured nine cloud deals, with significant wins among Tier 1 insurers, including global framework agreements with Zurich Insurance Group.

Strong Operating Margin Performance

Subscription and support gross margins reached 70%, ahead of expectations, showcasing operational efficiency improvements.

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Guidewire (GWRE) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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GWRE Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Mar 05, 2025	2025 (Q2)	0.52 / -	0.46	―	―	―
Dec 05, 2024	2025 (Q1)	0.30 / 0.43	0	―	―
Sep 05, 2024	2024 (Q4)	0.54 / 0.62	0.74	-16.22% (-0.12)	―
Jun 04, 2024	2024 (Q3)	0.13 / 0.26	-0.08	425.00% (+0.34)	―
Mar 07, 2024	2024 (Q2)	0.23 / 0.46	-0.21	319.05% (+0.67)	―
Dec 07, 2023	2024 (Q1)	-0.16 / 0.00	-0.12	―	―
Sep 07, 2023	2023 (Q4)	0.38 / 0.74	0.03	2366.67% (+0.71)	―
Jun 01, 2023	2023 (Q3)	-0.14 / -0.08	-0.26	69.23% (+0.18)	―
Mar 06, 2023	2023 (Q2)	-0.02 / -0.21	-0.06	-250.00% (-0.15)	―
Dec 06, 2022	2023 (Q1)	-0.39 / -0.12	-0.21	42.86% (+0.09)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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GWRE Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Dec 05, 2024	$206.57	$177.57	-14.04%
Sep 05, 2024	$143.93	$161.72	+12.36%
Jun 04, 2024	$108.05	$127.46	+17.96%
Mar 07, 2024	$116.93	$117.65	+0.62%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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