Guidewire Software

GWRE · NYSE

$183.58+$12.14 (+7.08%)TodayMarket closed · Oct 20, 7:43 PM ET

Prev close $171.44

GWRE analyst rating

BuyConsensus of 15 analysts over the last 12 months. 87% rate it a buy.

Strong buy0
Buy13
Hold2
Underperform0
Sell0

12-month price target · 16 analysts

Average $214.31 (+16.7% upside)

Low: $175.13
Now: $183.58
High: $246.75

Upgrades and downgrades

The latest rating actions, newest first

GWRE analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
DA Davidson	Oct 2, 2026	Maintains	Buy	$222.00	57%
DA Davidson	Sep 9, 2026	Maintains	Buy	$222.00	57%
Citigroup	Sep 4, 2026	Maintains	Neutral	$137.00 → $181.00	56%
Oppenheimer	Sep 4, 2026	Maintains	Outperform	$200.00 → $210.00	57%
DA Davidson	Sep 4, 2026	Maintains	Buy	$222.00	57%
Wells Fargo	Sep 4, 2026	Maintains	Overweight	$190.00 → $195.00	49%
RBC Capital	Sep 4, 2026	Maintains	Outperform	$215.00	51%
Citizens	Sep 4, 2026	Maintains	Market Outperform	$220.00	45%
BTIG	Sep 4, 2026	Maintains	Buy	$230.00 → $220.00	70%
Needham	Sep 4, 2026	Maintains	Hold	—	45%

The case for and against

Updated Oct 14, 2026

Bull case

Guidewire Software is well positioned because its cloud and subscription transition is driving both durable recurring revenue and operating leverage, with fiscal 4Q revenue up 15% Y/Y to $411M, subscription revenue up 36% Y/Y to $253M, and non-GAAP operating margin expanding to 27.1%. Its competitive strength is reinforced by major Tier 1&2 carrier wins, including a top 10 U.S. carrier and Nationwide, while fully ramped ARR rose 22% Y/Y to $1,578M and ARR reached $1,242M, showing robust demand for InsuranceSuite and related cloud migrations. Management’s fiscal 2027 outlook for 16%-17% revenue growth and 19%-25% non-GAAP operating income growth, plus a strong net cash position, supports the view that the company can keep scaling, repurchasing shares, and pursuing accretive acquisitions.

Bear case

Guidewire Software is exposed to a narrow P&C insurance end market, so any downturn in carrier spending, underwriting weakness, regulation, or consolidation can directly pressure renewals and new sales. Its fiscal 2025 customer base is concentrated, with the ten largest customers representing 20% of total revenue and ARR, while the cloud transition has already weighed on revenue growth and margins for several years and may still be slowing monetization. Competition from established vendors and emerging InsureTech players, plus reliance on third-party integrators and potential integration risk from acquisitions, makes the growth and margin outlook fragile; even after the recent rebound, the stock still trades at 24-25 times calendarized 2027 adjusted EBITDA of $496M.

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