Guidewire Software, Inc.

Guidewire delivered strong Q2 FY2026 results, with revenue growing 24% year-over-year to $359.1M and net income swinging to $60.1M from a loss of $37.3M in the prior year. This performance was driven by the ongoing shift to higher-margin subscription and support revenue, which management noted continues to outpace personnel and cloud infrastructure costs, leading to a gross margin of 64.5%. The significant 228% increase in operating income to $38.4M reflects improved operating leverage as the company scales its cloud transition. For investors, the quarter demonstrates successful execution of the cloud-first strategy, translating top-line growth into substantial bottom-line profitability and generating $36.5M in free cash flow, signaling a maturing financial profile.

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