GWRE · Guidewire Software, Inc.

Guidewire's Q3 FY2026 results showed accelerating momentum across key metrics. Total revenue of $372.5M grew 27% year-over-year, driven by a 35% surge in subscription and support revenue to $244.7M, reflecting continued cloud migration by insurers. License revenue dipped 2% to $56.0M, while services revenue jumped 32% to $71.8M. ARR reached $1,147M, up 19% from July 31, 2025, indicating strong recurring revenue growth. Profitability improved significantly: GAAP operating income rose to $30.6M from $4.5M, and non-GAAP operating income increased to $77.8M from $46.1M, aided by operating leverage. GAAP net income fell to $16.5M from $46.0M due to a $20.1M foreign currency loss versus a $34.2M gain last year; non-GAAP net income rose to $69.6M from $47.4M. Management raised the full-year FY2026 outlook: total revenue now expected at $1,460M-$1,470M (prior implied lower), non-GAAP operating income of $314M-$324M, and operating cash flow of $365M-$380M. The company also disclosed a new $500M share repurchase program, with $240.5M remaining after Q3 buybacks of $244.3M. CEO Mike Rosenbaum emphasized confidence in a record Q4, while CFO Jeff Cooper highlighted the durability of the business model driven by broad-based wins. Overall, the beat-and-raise quarter underscores strong demand for Guidewire's cloud platform and AI solutions, positioning the company for sustained growth.