Guidewire Software (NYSE: GWRE) Reports Strong Q3 Earnings and Cloud Growth

Font: Financial Modeling Prep  • Sep 04, 2026

• Guidewire Software exceeded analyst expectations with an EPS of $0.99 and revenue of $411.09 million.
• Annual Recurring Revenue (ARR) grew 19% year-over-year, reaching $1.242 billion, driven by cloud adoption.
• The cloud business demonstrated significant strength, with Cloud ARR surging 35% and comprising 84% of total ARR.

Guidewire Software (NYSE: GWRE) provides a core software platform for the property and casualty (P&C) insurance industry. The company helps insurers with underwriting, policy administration, billing, and claims management. It is increasingly shifting its business to a cloud-based subscription model, competing within the broader Internet Software industry.

In its latest report, Guidewire Software announces an earnings per share (EPS) of $0.99, which is higher than the analyst estimate of $0.93. This figure also shows an increase from the $0.84 per share reported in the same quarter last year. This result represents a 5.32% earnings surprise, as highlighted by Zacks.

The company also posts strong revenue of $411.09 million for the quarter, surpassing the forecasted $402.61 million. This is a notable increase from the $356.57 million in revenue from the year-ago period. Guidewire Software has now topped consensus revenue estimates for four consecutive quarters, showcasing consistent financial performance.

A key driver of this performance is the growth in annual recurring revenue (ARR), which is predictable revenue from subscriptions. ARR reaches $1.242 billion, a 19% increase year-over-year. This growth comes from successful cloud migrations and strong demand for its artificial intelligence and pricing products, enhancing its market position in insurance technology.

The company's cloud business shows significant strength. Cloud ARR surges by 35% and now makes up 84% of the total ARR. Guidewire Software also secures 26 new core deals in the quarter, including a notable agreement with Nationwide, showing continued customer adoption and expansion in the competitive P&C insurance software market.