Guidewire (GWRE) Shares Fall 19.9% After Fiscal 2027 Guidance

Key Facts

Guidewire Software (GWRE) closed September 4, 2026 at $162.42, a decline of 19.93% from the previous session's $202.86 close. The move came in the first session after the company reported fourth-quarter and fiscal-year results for the period ended July 31, 2026.

Guidewire forecast fiscal 2027 first-quarter revenue of $372 million to $378 million, compared with a $378.1 million consensus cited by StreetInsider. It also projected quarter-end ARR of $1.253 billion to $1.259 billion.

For the fourth quarter, revenue was $411.1 million versus MarketBeat's $402.61 million consensus, while adjusted earnings were $0.99 per share versus a $0.93 estimate.

For fiscal 2027, the company expects revenue of $1.707 billion to $1.727 billion and ending ARR of $1.450 billion to $1.460 billion. It also projects non-GAAP operating income of $403 million to $423 million and operating cash flow of $445 million to $465 million.

Fiscal 2026 ending ARR was $1.242 billion, with 19% constant-currency growth, and was revalued to $1.237 billion using July 31, 2026 exchange rates. Cloud ARR grew 35% and represented 84% of the total.

Fourth-quarter non-GAAP operating income was $111.3 million versus $73.5 million a year earlier. Full-year operating cash flow was $389.7 million versus $300.9 million a year earlier.

ARR measures the annualized recurring value of active contracts at period-end, but it does not necessarily equal accounting revenue for the period. Revenue-recognition timing can differ from contract timing, so ARR indicates the scale of recurring business while revenue measures amounts recognized under accounting rules.

First-quarter revenue of $372 million to $378 million and ARR of $1.253 billion to $1.259 billion will be the initial execution benchmarks. Performance will then be measured against full-year revenue of $1.707 billion to $1.727 billion and ending ARR of $1.450 billion to $1.460 billion.