Guidewire stock price target raised at Citizens JMP after strong results

Published 04/06/2025, 10:16
Guidewire stock price target raised at Citizens JMP after strong results

On Wednesday, Citizens JMP analysts raised the price target for Guidewire Software (ETR:SOWGn) stock to $281 from $250, while maintaining a Market Outperform rating. The decision follows the company’s strong fiscal third-quarter results. According to InvestingPro data, the stock is trading near its 52-week high of $219.59, having delivered an impressive 101.93% return over the past year. Currently trading at $218.18, the stock appears overvalued based on InvestingPro’s Fair Value analysis.

Guidewire reported an annual recurring revenue (ARR) of $960 million, surpassing the consensus estimate of $945.1 million. This marks a 16% increase compared to the previous year, up from 15% in the prior quarter. InvestingPro analysis reveals 10 analysts have revised their earnings upward for the upcoming period, with additional insights available in the comprehensive Pro Research Report covering 1,400+ top stocks.

The company’s revenue reached $293.5 million, exceeding the consensus forecast of $286.3 million. This represents a 22% year-over-year increase, compared to 20% in the previous quarter.

Subscription and support revenue amounted to $181.8 million, slightly above the consensus of $178.1 million. This reflects a 32% increase from last year, though slightly down from a 35% increase in the previous quarter.

Guidewire also reported a non-GAAP gross margin of 65.4%, higher than the consensus of 63.7%, and a non-GAAP operating margin of 15.7%, above the expected 13.9%.

In other recent news, Guidewire Software Inc (NYSE:GWRE). reported impressive financial results for the second quarter of 2025. The company’s earnings per share (EPS) reached $0.88, significantly surpassing the Wall Street forecast of $0.41. Guidewire’s revenue also exceeded expectations, totaling $294 million compared to the anticipated $286.33 million. This performance was driven by a 22% year-over-year revenue increase, largely attributed to growth in subscription and support services. The company closed 17 new cloud deals, expanding its global presence in regions such as Canada, APAC, and EMEA. Additionally, Guidewire raised its annual recurring revenue (ARR) outlook to between $1,012 million and $1,022 million, reflecting a growth of 17-18%. In strategic moves, Guidewire announced a $60 million investment in the Japanese market over the next five years, signaling its commitment to global expansion. Analyst firms have noted the company’s strong operational execution and strategic investments in cloud technology as key factors in its recent success.

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