Guidewire Reports Strong Q4 Earnings with Cloud Growth and Record-Low Attrition
Guidewire Software (GWRE) reported strong financial results for fiscal year 2026, driven by robust cloud platform adoption and low attrition rates. The company achieved $1.242 billion in ARR at the end of FY2026, reflecting a 19% increase from the previous year. Subscription revenue grew 37%, reaching $916 million, while non-GAAP operating income surged by 63% to $340 million due to improved gross margins and cost control. Guidewire also highlighted its cloud migration progress with Cloud ARR contributing 84% of total ARR and growing at a 35% year-over-year rate. The company closed multiple core cloud deals, including a significant agreement with Nationwide for U.S. Tier 1 services using PricingCenter technology. Management provided FY2027 guidance projecting continued growth in ARR and subscription revenue. Despite these positives, the CFO noted near-term challenges from AI investments impacting service margins and potential normalization of attrition rates.
Tickers: $GWRE
Topics: ARR growth attrition rates cloud contribution non-GAAP operating income revenue share repurchases subscription revenue