|GWRE Overview
GWRE

Guidewire Software, Inc.

Technology • CIK: 0001528396

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Market Cap
$19.68B
P/E (TTM)
214.3x
Rev Growth (TTM)
+22.8%
Net Margin (TTM)
7.2%
FCF Yield (TTM)
1.5%
FCF Margin (TTM)
22.5%

LATEST EARNINGS

Q1 FY2026
3 months ago
View source
Revenue
$332.64M
+26.9%
Net Income
$31.31M
+242.5%
EPS
$0.36
+227.3%
Gross
63.0% +2.8%
Operating
5.6% +7.4%
Net
9.4% +5.9%
  • Total revenue increased 27% year-over-year to $332.6 million.
  • Annual Recurring Revenue (ARR) grew 22% year-over-year to $1,063 million.
  • GAAP income from operations turned positive at $18.5 million, compared to a loss of $4.7 million in the prior year.
  • Non-GAAP income from operations increased 83% year-over-year to $63.4 million.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$286M
Q1 '26
$-72M-130%
Q4 '25
$241M+663%
FCF Margin
TTM22.5%
Q1 '26-21.7%-132%
Sector: 10.0%Top 25%
OCF Margin23.2%
OCF/NI3.22x
CapEx Coverage30.3x
FCF Yield1.5%
FCF Growth (2Y)
Cash Conversion Cycle
14 days
DSO: 36+DIO: 0DPO: 22

Capital Allocation & Returns

Total Shareholder Yield
TTM0.0%
Div Yield0.0%

Insufficient data

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$286.0M
Stock Repurchases ()$0
Capital Return / FCF0.0%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
4.1%
Stable
+10.1%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
6.5%
8Q: 2.3%
Asset Turnover
0.49x
8Q: 0.48x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 3.2%4.1% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
22.10x
8Q:21.15x
+539.0%
Invested Cap Turn
0.88x
8Q:0.88x
-2.1%
CapEx Intensity
0.7%
8Q:0.5%
CapEx/Depreciation
0.40x
Depreciation Rate Trend
⚠ Declining -5.2%
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Revenue
$1.3B
$332.6M6.7%
$356.6M21.5%
$293.5M1.4%
$289.5M10.1%
$262.9M9.8%
$291.5M21.1%
$240.7M0.1%
$240.9M
Operating Income
$64.3M
$18.5M37.6%
$29.6M562.4%
$4.5M61.9%
$11.7M348.4%
$-4.7M145.8%
$10.3M161.8%
$-16.7M34.5%
$-12.4M
Net Income
$92.0M
$31.3M39.7%
$52.0M13.0%
$46.0M223.4%
$-37.3M507.9%
$9.1M45.5%
$16.8M405.9%
$-5.5M156.6%
$9.7M
Operating Cash Flow
$295.8M
$-67.4M127.5%
$244.8M656.8%
$32.4M62.4%
$86.0M238.0%
$-62.3M132.2%
$193.8M3934.5%
$4.8M93.1%
$69.3M
Free Cash Flow
$286.0M
$-72.3M129.9%
$241.4M662.9%
$31.6M62.9%
$85.2M234.9%
$-63.1M132.9%
$192.1M4556.6%
$4.1M93.8%
$66.3M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
214.3x
Volatile
8Q: 501.9x+36883%
Valuation Lenses
Earnings
214.3x
vs sector
Cash Flow
15.2x
EV/FCF vs
Growth-Adj
1.2xPEG
Fair for growth
Quality-Adj
52.6P/E per %ROIC
ROIC: 4.1%
Shareholder Returns
Dividend
Buyback
Total Yield
Market Cap$19.68B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
64/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
6.7%
8Q:
Return on Invested Capital (ROIC)Top 25%
4.1%
8Q:
+10.1%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 6.5%
Asset Turnover: 0.49x

Earnings Quality

Cash Conversion

3.22x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin63.1%

Capital Efficiency

Invested Capital Turnover0.88x

Working Capital

Cash Conversion Cycle14 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
70/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
22.8%
OpInc Growth YoY
491.5%
EPS Growth YoY
183.8%
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
63.1%
Operating
5.1%
Below Avg in sector
Net
7.2%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+15.3 pts
FCF: 22.5% | Net: 7.2%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $1.01B
Interest Coverage
+Net cash position: $1.01B
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis