Shares of Guidewire (NYSE: GWRE) surged 15.21% in after-hours trading on Thursday following the release of its fourth-quarter fiscal year 2025 earnings report, which exceeded analyst expectations. The insurance software provider demonstrated robust financial performance and provided an optimistic outlook for the coming year.
Guidewire reported quarterly earnings of $0.84 per share, significantly beating the analyst consensus estimate of $0.64 by 32.28%. This represents a 35.48% increase from earnings of $0.62 per share in the same period last year. The company's quarterly revenue came in at $356.570 million, surpassing the analyst consensus estimate of $337.858 million by 5.54% and marking a 22.32% increase from the previous year.
CEO Mike Rosenbaum highlighted the company's achievement of surpassing $1 billion in Annual Recurring Revenue (ARR), driven by the execution of 19 cloud deals in the fourth quarter. A significant 10-year agreement with a major Tier-1 insurer further contributed to the company's strong performance. Looking ahead, Guidewire provided a positive outlook for fiscal year 2026, projecting total revenue between $1,385 million and $1,405 million, and operating income ranging from $68 million to $88 million. The company also anticipates robust operating cash flow between $350 million and $370 million for the upcoming fiscal year.