EL7.AI
StocksMediumUpdated×3•Originally published 4 September 2026•Updated 4 September 2026•
1 min read

Guidewire Falls 15% as Quarterly Revenue Outlook Misses Estimates

Key Facts

1GWRE fell 15.11% after hours to $172.20 from $202.86.
2Adjusted EPS was $0.99 versus a $0.93 estimate, while revenue was $411.1 million versus $402.7 million.
3The company expects first-quarter revenue of $372 million to $378 million, below the $387.1 million consensus.
4ARR reached about $1.242 billion, up 19% in constant currency, while cloud ARR represented 84% of the total after growing 35%.

Guidewire Software (GWRE) shares tumbled 15.11% in after-hours trading to $172.20 after the company issued first-quarter fiscal 2027 revenue guidance that missed analyst consensus. Despite the soft outlook, the company reported adjusted earnings of $0.99 per share on revenue of $411.1 million for the period ended July 31, 2026, representing a 15% year-over-year revenue increase alongside robust margin expansion.

Per market data, the sharp price drop is underscored by the stock's high valuation, currently trading at 41.5x non-GAAP 2027 P/E, which heightened investor sensitivity to the guidance miss. Management attributed the 19% growth in Annual Recurring Revenue (ARR) to robust demand for its artificial intelligence products, which helped drive non-GAAP operating income to $111.3 million from $73.5 million a year earlier.

Investors are now watching whether Guidewire can meet its Q1 revenue target of $372 million to $378 million amid a continued cloud transition that now accounts for 84% of total ARR. Following the close on September 3, 2026, the stock faces immediate technical pressure after losing the $200 level, with the market focusing on whether AI-driven demand can justify current valuation multiples and mitigate the projected growth slowdown.