Revenue growth has accelerated to 26.9% as of 2026Q3, though operating margins remain constrained within a narrow range, peaking at just 10.8% in 2026Q2.
| Metric | TTM | Jul'25 | Jul'24 | Jul'23 | Jul'22 | Jul'21 | Jul'20 | Jul'19 | Jul'18 | Jul'17 | Jul'16 | Jul'15 | Jul'14 | Jul'13 | Jul'12 | Jul'11 | Jul'10 | Jul'09 |
|---|
| Sales/Revenue | 1.42B | 1.2B | 980.5M | 905.34M | 812.61M | 743.27M | 742.31M | 719.51M | 661.07M | 514.28M | 424.45M | 380.54M | 350.25M | 300.65M | 232.06M | 172.47M | 144.69M | 84.75M |
| Revenue Growth % | 24.92% | 22.64% | 8.3% | 11.41% | 9.33% | 0.13% | 3.17% | 8.84% | 28.54% | 21.17% | 11.54% | 8.65% | 16.5% | 29.56% | 34.55% | 19.2% | 70.74% | - |
| Cost of Goods Sold | 511.35M | 450.41M | 397.14M | 447.13M | 435.44M | 353.71M | 338.01M | 324.35M | 296.78M | 191.56M | 151.83M | 147.18M | 148.95M | 125.65M | 90M | 68.34M | 55.47M | 41.66M |
| COGS % of Revenue | - | 37.46% | 40.5% | 49.39% | 53.58% | 47.59% | 45.54% | 45.08% | 44.89% | 37.25% | 35.77% | 38.68% | 42.53% | 41.79% | 38.79% | 39.63% | 38.34% | 49.15% |
| Gross Profit | 909.5M | 752.05M | 583.36M | 458.21M | 377.18M | 389.56M | 404.29M | 395.16M | 356.07M | 317.97M | 272.61M | 233.35M | 201.3M | 175M | 142.06M | 104.13M | 89.22M | 43.09M |
| Gross Margin % | 64.01% | 62.54% | 59.5% | 50.61% | 46.42% | 52.41% | 54.46% | 54.92% | 53.86% | 61.83% | 64.23% | 61.32% | 57.47% | 58.21% | 61.21% | 60.37% | 61.66% | 50.85% |
| Gross Profit Growth % | - | 28.92% | 27.31% | 21.48% | -3.18% | -3.64% | 2.31% | 10.98% | 11.98% | 16.64% | 16.82% | 15.92% | 15.03% | 23.19% | 36.42% | 16.71% | 107.06% | - |
| Operating Expenses | 792.35M | 710.99M | 635.93M | 607.7M | 576.62M | 495.14M | 428.18M | 393.69M | 371.69M | 296.11M | 256.18M | 216.86M | 182.88M | 145.26M | 113.12M | 97.26M | 71.21M | 53.56M |
| OpEx % of Revenue | - | 59.13% | 64.86% | 67.12% | 70.96% | 66.62% | 57.68% | 54.72% | 56.23% | 57.58% | 60.36% | 56.99% | 52.21% | 48.32% | 48.75% | 56.39% | 49.21% | 63.2% |
| Selling, General & Admin | 458.74M | 414.82M | 366.55M | 357.95M | 347.39M | 293.68M | 227.6M | 205.15M | 200.03M | 165.79M | 143.68M | 123.42M | 106.7M | 82.27M | 64.07M | 52.48M | 42.93M | 31.2M |
| SG&A % of Revenue | - | 34.5% | 37.38% | 39.54% | 42.75% | 39.51% | 30.66% | 28.51% | 30.26% | 32.24% | 33.85% | 32.43% | 30.46% | 27.36% | 27.61% | 30.43% | 29.67% | 36.82% |
| Research & Development | 333.61M | 296.16M | 269.38M | 249.75M | 229.23M | 201.47M | 200.57M | 188.54M | 171.66M | 130.32M | 112.5M | 93.44M | 76.18M | 62.99M | 49.06M | 34.77M | 28.27M | 22.36M |
| R&D % of Revenue | - | 24.63% | 27.47% | 27.59% | 28.21% | 27.11% | 27.02% | 26.2% | 25.97% | 25.34% | 26.5% | 24.55% | 21.75% | 20.95% | 21.14% | 20.16% | 19.54% | 26.38% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10M | 0 | 0 |
| Operating Income | 117.6M | 41.07M | -52.57M | -149.49M | -199.45M | -105.58M | -23.89M | 1.47M | -7.33M | 26.61M | 16.44M | 16.49M | 18.42M | 16.84M | 23.6M | 6.87M | 18.01M | -10.47M |
| Operating Margin % | 8.28% | 3.42% | -5.36% | -16.51% | -24.54% | -14.21% | -3.22% | 0.2% | -1.11% | 5.17% | 3.87% | 4.33% | 5.26% | 5.6% | 10.17% | 3.98% | 12.45% | -12.36% |
| Operating Income Growth % | - | 178.12% | 64.83% | 25.05% | -88.9% | -342.03% | -1723.79% | 120.07% | -127.54% | 61.9% | -0.34% | -10.47% | 9.36% | -28.62% | 243.46% | -61.86% | 272.02% | - |
| EBITDA | 138.16M | 64.83M | -30.26M | -124.65M | -165.91M | -68.63M | 18.75M | 41.42M | 28.28M | 45.34M | 25.28M | 23.97M | 25.17M | 21.67M | 26.52M | 9.1M | 19.39M | -9.17M |
| EBITDA Margin % | 9.72% | 5.39% | -3.09% | -13.77% | -20.42% | -9.23% | 2.53% | 5.76% | 4.28% | 8.82% | 5.96% | 6.3% | 7.19% | 7.21% | 11.43% | 5.27% | 13.4% | -10.82% |
| EBITDA Growth % | 206.31% | 314.2% | 75.72% | 24.87% | -141.74% | -465.92% | -54.72% | 46.47% | -37.62% | 79.35% | 5.45% | -4.77% | 16.19% | -18.29% | 191.48% | -53.08% | 311.54% | - |
| D&A (Non-Cash Add-back) | 28.12M | 23.76M | 22.31M | 24.84M | 33.54M | 36.95M | 42.64M | 39.95M | 35.61M | 18.73M | 8.84M | 7.48M | 6.75M | 4.82M | 2.92M | 2.23M | 1.38M | 1.31M |
| EBIT | 173.06M | 62.61M | -20.1M | -127.38M | -210.27M | -85.57M | -6.39M | 29.79M | -1.83M | 28.54M | 20.78M | 16.49M | 18.42M | 29.74M | 28.93M | 16.87M | 18.01M | -10.47M |
| Net Interest Income | 38.67M | 43.41M | 36.74M | 17.67M | -13.17M | -11.32M | 6.76M | 12.85M | 6.84M | 5.85M | 4.85M | 2.25M | 1.35M | 498K | 308K | 156K | 95K | 27K |
| Interest Income | 51.94M | 56.63M | 43.48M | 24.39M | 6.28M | 7.39M | 24.7M | 30.18M | 13.28M | 5.85M | 4.85M | 2.25M | 1.35M | 498K | 308K | 156K | 95K | 27K |
| Interest Expense | 13.26M | 13.21M | 6.74M | 6.72M | 19.45M | 18.71M | 17.95M | 17.33M | 6.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 42.2M | 8.33M | 25.73M | 15.4M | -30.27M | 1.3M | -445K | 10.98M | 7.35M | 6.67M | 4.34M | 247K | 1.52M | 384K | -418K | 1.43M | -296K | -96K |
| Pretax Income | 159.8M | 49.4M | -26.84M | -134.09M | -229.72M | -104.28M | -24.33M | 12.45M | 18K | 33.28M | 20.78M | 16.74M | 19.95M | 17.21M | 23.18M | 8.3M | 17.72M | -10.57M |
| Pretax Margin % | 11.25% | 4.11% | -2.74% | -14.81% | -28.27% | -14.03% | -3.28% | 1.73% | 0% | 6.47% | 4.9% | 4.4% | 5.69% | 5.72% | 9.99% | 4.81% | 12.25% | -12.47% |
| Income Tax | -41K | -20.41M | -20.73M | -22.24M | -49.28M | -37.77M | 2.87M | -8.28M | 18.47M | 12.05M | 5.81M | 6.86M | 5.22M | 1.83M | 7.98M | -27.26M | 2.2M | 398K |
| Effective Tax Rate % | -0.03% | -41.32% | 77.26% | 16.58% | 21.45% | 36.22% | -11.78% | -66.5% | 102594.44% | 36.22% | 27.94% | 40.95% | 26.2% | 10.63% | 34.42% | -328.62% | 12.41% | -3.77% |
| Net Income | 159.84M | 69.8M | -6.1M | -111.86M | -180.43M | -66.51M | -27.2M | 20.73M | -19.66M | 21.22M | 14.98M | 9.88M | 14.72M | 15.38M | 15.2M | 35.56M | 15.52M | -10.97M |
| Net Margin % | 11.25% | 5.81% | -0.62% | -12.35% | -22.2% | -8.95% | -3.66% | 2.88% | -2.97% | 4.13% | 3.53% | 2.6% | 4.2% | 5.12% | 6.55% | 20.62% | 10.73% | -12.94% |
| Net Income Growth % | 361.81% | 1243.77% | 94.54% | 38.01% | -171.3% | -144.53% | -231.19% | 205.43% | -192.65% | 41.72% | 51.5% | -32.85% | -4.3% | 1.2% | -57.25% | 129.13% | 241.52% | - |
| Net Income (Continuing) | 159.84M | 69.8M | -6.1M | -111.86M | -180.43M | -66.51M | -27.2M | 20.73M | -26.74M | 18.07M | 14.98M | 9.88M | 14.72M | 15.38M | 18.66M | 35.56M | 15.52M | -10.97M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.86 | 0.81 | -0.07 | -1.36 | -2.16 | -0.80 | -0.33 | 0.25 | -0.25 | 0.24 | 0.20 | 0.14 | 0.21 | 0.25 | 0.25 | 0.29 | 0.10 | -0.24 |
| EPS Growth % | 365% | 1191.64% | 94.54% | 37.04% | -170% | -142.42% | -232% | 200% | -204.17% | 20% | 42.86% | -33.33% | -16% | 0% | -13.79% | 190% | 141.67% | - |
| EPS (Basic) | - | 0.83 | -0.07 | -1.36 | -2.16 | -0.80 | -0.33 | 0.25 | -0.25 | 0.24 | 0.21 | 0.14 | 0.22 | 0.27 | 0.36 | 0.29 | 0.11 | -0.27 |
| Diluted Shares Outstanding | 85.95M | 85.91M | 82.29M | 82.18M | 83.57M | 83.58M | 82.86M | 82.68M | 77.71M | 75.33M | 73.77M | 72.31M | 69.11M | 61.57M | 53.96M | 48.89M | 48.89M | 46.51M |
| Basic Shares Outstanding | 84.63M | 83.85M | 82.29M | 82.18M | 83.57M | 83.58M | 82.86M | 82.68M | 77.71M | 74M | 72.03M | 70.08M | 65.75M | 56.33M | 53.96M | 48.89M | 39.91M | 39.91M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cloud transition margin drag
As reported in recent financial filings, Guidewire's revenue growth has accelerated to 26.9% in 2026Q3, signaling that the strategic pivot toward subscription-based cloud services is successfully offsetting the decline of legacy term licenses and establishing a more durable, recurring revenue foundation for the enterprise software provider.
The consistent double-digit growth suggests that Guidewire is successfully capturing market share within the P&C insurance sector despite the inherent friction of long-term digital transformation cycles. Investors should monitor whether this momentum can be sustained as the company exhausts its initial base of legacy customers ready for migration.
Based on the provided income statement data, Guidewire's gross margin has fluctuated within a narrow 59.1% to 65.0% range, reflecting the persistent cost burden of maintaining dual-delivery models while scaling cloud infrastructure to meet the complex demands of global Tier 1 insurance carriers.
The inability to consistently expand gross margins beyond the mid-60s suggests that the company remains tethered to high-touch professional services and legacy support requirements. This indicates that true operational leverage may remain elusive until the majority of the installed base is fully transitioned to the cloud platform.
According to historical quarterly figures, Guidewire's operating income has struggled to scale proportionally with revenue, with operating margins peaking at only 10.8% in 2026Q2, which suggests that the company is currently prioritizing market penetration and cloud adoption over immediate bottom-line profitability and expense efficiency.
The high level of R&D and SG&A spending relative to gross profit implies that the company is still in a heavy investment phase. Analysts should investigate whether the current operating margin profile is a temporary byproduct of the cloud transition or a permanent feature of the business model.
Analysis of the income statement reveals that stock-based compensation remains a significant recurring expense, consistently exceeding $40 million per quarter, which warrants careful scrutiny regarding the quality of reported net income and the potential for ongoing dilution of shareholder equity over the long term.
The reliance on equity-based incentives appears to be a core component of the company's talent retention strategy in a competitive software engineering market. Investors should consider the impact of these non-cash charges on the underlying economic reality of the company's earnings power.
As indicated by the provided data, the company's operating margin of 3.42% remains notably thin for a high-growth SaaS entity, suggesting that short-sellers may focus on the risk that the cloud transition will never achieve the expected margin expansion due to structural service delivery costs.
The persistence of high implementation costs suggests that Guidewire may be subsidizing its cloud growth through professional services, which could lead to margin compression if the company fails to successfully offload these tasks to third-party integrators. This scenario warrants further investigation into the long-term scalability of the cloud model.
Quick answers to the most common questions about buying GWRE stock.
For fiscal year 2025, Guidewire Software, Inc. (GWRE) reported total revenue of $1.20B. This represents a 1318.9% increase compared to $84.7M in 2009.
Guidewire Software, Inc. (GWRE) is profitable, generating $69.8M in net income for the fiscal year ending 2025 with a net profit margin of 5.8%.
Guidewire Software, Inc. (GWRE) reported an operating income of $41.1M, resulting in an operating profit margin of 3.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Guidewire Software, Inc. (GWRE) generated $752.1M in gross profit for the year, representing a gross profit margin of 62.5%. This demonstrates the company's core pricing power and production efficiency.