# Guidewire Software (GWRE.US)

Canonical: https://gigainvestors.com/s/GWRE

Analysis as of: 2026-10-16T07:28:55.510Z. Financial observations: FY2008–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $175.77 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 6

- Operating margin variation: 2.23×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.05×

- FY2018: -0.01×

- FY2019: 0.00×

- FY2020: -0.03×

- FY2021: -0.14×

- FY2022: -0.25×

- FY2023: -0.17×

- FY2024: -0.05×

- FY2025: 0.03×

- FY2026: 0.10×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -2.1%

- ROIC, second-lowest year: -24.8%

- Typical minus recent gross margin: -7.9 pp

- Typical gross margin (annual median): 54.7%

- Recent gross margin (lower of latest and 3-year median): 62.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.9%

- ROIC including acquisitions, ten-year median: 0.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 7.8%

- FY2018: -1.3%

- FY2019: 0.3%

- FY2020: -2.9%

- FY2021: -15.0%

- FY2022: -27.2%

- FY2023: -24.8%

- FY2024: -10.1%

- FY2025: 6.5%

- FY2026: 17.7%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$24M

- Net income, five-year total: -$89M

- Return on incremental invested capital: 91.6%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 6.5 pp

- Working capital / revenue, final three-year average: 22.5%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: -$169M

- FY2023: -$104M

- FY2024: -$2.3M

- FY2025: $88M

- FY2026: $164M

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.3% vs 6.5%

- Per-share earnings: 0.20 to 0.81 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.5%

- Ordinary dilution, 5-year annual growth: 0.4%

- Market cap gain: $7.0B

- Cumulative retained earnings: -$1.1B

- Diluted shares, 10-year annual growth: 1.5%

- Diluted shares, 5-year annual growth: 0.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 18.9%

- Per-share value change: $0.61

- Per-share value, starting three-year median: $0.20

- Per-share value, ending three-year median: $0.81

- Buybacks concentrated in cheaper years (correlation): 0.80

- Average buyback yield: 2.7%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Acquisition spending: $484M

- Cumulative net income, 10 years: -$161M

- ROIC, first three-year median: 0.3%

- ROIC, last three-year median: 6.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.28

- FY2018: -$0.25

- FY2019: $0.25

- FY2020: -$0.33

- FY2021: -$0.80

- FY2022: -$2.16

- FY2023: -$1.36

- FY2024: -$0.07

- FY2025: $0.81

- FY2026: $1.63

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -9.7%

- Receivables to sales index (DSRI): 0.91×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 46.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.80×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.37×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -10.7%

- FY2018: -8.1%

- FY2019: -4.4%

- FY2020: -5.9%

- FY2021: -7.7%

- FY2022: -6.3%

- FY2023: -7.4%

- FY2024: -9.1%

- FY2025: -8.5%

- FY2026: -9.7%

## Holders

- [Bryan Lawrence](https://gigainvestors.com/OCL): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 25% since Jun 2025 · "Guidewire shares tumble on weak first quarter guidance" (finance.yahoo.com, Sep 2026) · sales +22.7%

Story as of 2026-10-16T09:58:51.233Z; price observation 2026-10-15.

- 2025-06-04: GWRE Q1 Earnings Call: Cloud Platform Drives Growth, Misses Revenue Expectations, Raises Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/gwre-q1-earnings-call-cloud-141056373.html))

- 2025-09-05: Guidewire surges as ARR surpasses $1B during Q4; analysts expect similar growth in FY26 ([seekingalpha.com](https://seekingalpha.com/news/4492722-guidewire-surges-as-arr-surpasses-1b-during-q4-analysts-expect-similar-growth-in-fy26?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-03-10: A Look At Guidewire Software’s (GWRE) Valuation After Earnings Beat And Upgraded Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/look-guidewire-software-gwre-valuation-121021773.html))

- 2026-06-05: Guidewire Stock Falls Sharply on Earnings. Blame Full-Year Guidance. ([finance.yahoo.com](https://finance.yahoo.com/m/756f93c6-4199-36b7-8c6e-319c0c248f8d/guidewire-stock-falls-sharply.html))

- 2026-07-03: GWRE Stock Outlook Built on Cloud Growth, Margin Gains and AI Risks ([finance.yahoo.com](https://finance.yahoo.com/technology/articles/gwre-stock-outlook-built-cloud-132400098.html))

- 2026-09-03: Guidewire shares tumble on weak first quarter guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/guidewire-shares-tumble-weak-first-211305242.html))

### Sales · FY2025–2026

sales +22.7%; source https://www.sec.gov/Archives/edgar/data/1528396/000152839626000046/gwre-20260731.htm; observed 2026-09-11.

- FY2017: $514M 

- FY2018: $661M 

- FY2019: $720M 

- FY2020: $742M 

- FY2021: $743M 

- FY2022: $813M 

- FY2023: $905M 

- FY2024: $980M 

- FY2025: $1.2B 

- FY2026: $1.5B 

### Gross margin · FY2026

gross margin 64.2%; source https://www.sec.gov/Archives/edgar/data/1528396/000152839626000046/gwre-20260731.htm; observed 2026-09-11.

- FY2017: 61.8% 

- FY2018: 53.9% 

- FY2019: 54.9% 

- FY2020: 54.5% 

- FY2021: 52.4% 

- FY2022: 46.4% 

- FY2023: 50.6% 

- FY2024: 59.5% 

- FY2025: 62.5% 

- FY2026: 64.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 1.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1528396/000152839626000046/gwre-20260731.htm (filed 2026-09-11); FY2026: revenue 1475363000; grossProfit 947368000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 59.5% to 64.2% during 2024–26; it lost 2.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-11); FY2024: grossProfit / revenue = 59.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-11); FY2025: grossProfit / revenue = 62.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1528396/000152839626000046/gwre-20260731.htm (filed 2026-09-11); FY2026: grossProfit / revenue = 64.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-11); 10-year return on capital observations [[2017,0.07779256874049956],[2018,-0.012848170730063021],[2019,0.002943330385334171],[2020,-0.029349137642760603],[2021,-0.15017898392727574],[2022,-0.2721889910412283],[2023,-0.2475088181111323],[2024,-0.10133157179489057],[2025,0.06523887136180663],[2026,0.1770276051065072]]; median -0.02109865418641181. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 606.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-11); FY2017: growth capex 0; upkeep 6670000; owner earnings 33279000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-11); FY2018: growth capex 0; upkeep 12011000; owner earnings 3935000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-11); FY2019: growth capex 2455034.7063894346; upkeep 46401965.293610565; owner earnings 14283034.706389435. Growth capex / owner earnings = 0.17188466994981036.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-11); FY2025: growth capex 0; upkeep 5741000; owner earnings 87821000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1528396/000152839626000046/gwre-20260731.htm (filed 2026-09-11); FY2026: growth capex 0; upkeep 12056000; owner earnings 163682000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-11); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1528396/000152839626000046/gwre-20260731.htm (filed 2026-09-11); FY2026: cash repurchases 606309000 USD.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GWRE.US SharesStats.PercentInsiders = 0.635 percentage points; cache date 2026-10-16.

### What the price says

The price is 10.2 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-11); Closing price 175.77 USD; reporting-to-trading FX 1; FY2026 annual sales per share 17.274866136042316; price multiple 10.174897948023638. FY2026 cash earnings/share 1.9165348723532298. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $57.45 per share

- 2016-11: $55.71 per share

- 2016-12: $49.33 per share

- 2017-01: $52.33 per share

- 2017-02: $54.64 per share

- 2017-03: $56.33 per share

- 2017-04: $61.49 per share

- 2017-05: $66.42 per share

- 2017-06: $68.71 per share

- 2017-07: $72.16 per share

- 2017-08: $75.71 per share

- 2017-09: $77.86 per share

- 2017-10: $79.98 per share

- 2017-11: $74.39 per share

- 2017-12: $74.26 per share

- 2018-01: $79.45 per share

- 2018-02: $80.32 per share

- 2018-03: $80.83 per share

- 2018-04: $84.62 per share

- 2018-05: $92.84 per share

- 2018-06: $88.78 per share

- 2018-07: $86.20 per share

- 2018-08: $100.57 per share

- 2018-09: $101.01 per share

- 2018-10: $88.97 per share

- 2018-11: $92.96 per share

- 2018-12: $80.23 per share

- 2019-01: $86.68 per share

- 2019-02: $91.74 per share

- 2019-03: $97.16 per share

- 2019-04: $106.50 per share

- 2019-05: $100.52 per share

- 2019-06: $101.38 per share

- 2019-07: $102.08 per share

- 2019-08: $96.18 per share

- 2019-09: $105.38 per share

- 2019-10: $112.74 per share

- 2019-11: $121.83 per share

- 2019-12: $109.77 per share

- 2020-01: $112.50 per share

- 2020-02: $109.61 per share

- 2020-03: $79.31 per share

- 2020-04: $90.84 per share

- 2020-05: $102.58 per share

- 2020-06: $110.85 per share

- 2020-07: $117.66 per share

- 2020-08: $112.31 per share

- 2020-09: $104.27 per share

- 2020-10: $96.11 per share

- 2020-11: $122.48 per share

- 2020-12: $128.73 per share

- 2021-01: $114.74 per share

- 2021-02: $110.99 per share

- 2021-03: $101.63 per share

- 2021-04: $105.51 per share

- 2021-05: $97.74 per share

- 2021-06: $112.72 per share

- 2021-07: $115.20 per share

- 2021-08: $118.46 per share

- 2021-09: $118.87 per share

- 2021-10: $125.73 per share

- 2021-11: $116.34 per share

- 2021-12: $113.53 per share

- 2022-01: $100.84 per share

- 2022-02: $88.15 per share

- 2022-03: $94.62 per share

- 2022-04: $86.94 per share

- 2022-05: $79.94 per share

- 2022-06: $70.99 per share

- 2022-07: $77.72 per share

- 2022-08: $71.71 per share

- 2022-09: $61.58 per share

- 2022-10: $59.41 per share

- 2022-11: $59.31 per share

- 2022-12: $62.56 per share

- 2023-01: $73.24 per share

- 2023-02: $70.21 per share

- 2023-03: $82.05 per share

- 2023-04: $76.19 per share

- 2023-05: $82.98 per share

- 2023-06: $76.08 per share

- 2023-07: $84.82 per share

- 2023-08: $86.43 per share

- 2023-09: $90.00 per share

- 2023-10: $90.13 per share

- 2023-11: $99.94 per share

- 2023-12: $109.04 per share

- 2024-01: $111.68 per share

- 2024-02: $119.34 per share

- 2024-03: $116.71 per share

- 2024-04: $110.40 per share

- 2024-05: $113.92 per share

- 2024-06: $137.89 per share

- 2024-07: $150.07 per share

- 2024-08: $148.77 per share

- 2024-09: $182.94 per share

- 2024-10: $186.26 per share

- 2024-11: $202.89 per share

- 2024-12: $168.58 per share

- 2025-01: $211.27 per share

- 2025-02: $201.32 per share

- 2025-03: $187.36 per share

- 2025-04: $204.77 per share

- 2025-05: $215.02 per share

- 2025-06: $235.45 per share

- 2025-07: $226.22 per share

- 2025-08: $217.02 per share

- 2025-09: $229.86 per share

- 2025-10: $233.64 per share

- 2025-11: $215.98 per share

- 2025-12: $201.01 per share

- 2026-01: $140.76 per share

- 2026-02: $145.32 per share

- 2026-03: $149.56 per share

- 2026-04: $138.39 per share

- 2026-05: $152.67 per share

- 2026-06: $123.05 per share

- 2026-07: $151.94 per share

- 2026-08: $204.75 per share

- 2026-09: $142.58 per share

- 2026-10: $175.77 per share

## Annual estimated value (USD per share)

- FY2017: low $10.75 per share, central $11.20 per share, high $11.80 per share

- FY2018: low $18.11 per share, central $20.07 per share, high $21.20 per share

- FY2019: low $16.86 per share, central $18.34 per share, high $19.20 per share

- FY2020: low $15.45 per share, central $15.71 per share, high $16.07 per share

- FY2021: low $13.93 per share, central $14.23 per share, high $14.41 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1528396/000152839626000046/gwre-20260731.htm); period 2026-07-31, filed 2026-09-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.