Guidewire stock jumps 4% on top-line beat in Q2, raised outlook

Published 06/03/2025, 22:34
Guidewire stock jumps 4% on top-line beat in Q2, raised outlook

SAN MATEO, Calif. - Guidewire Software (NYSE:GWRE) shares jumped 4.2% in after-hours trading Thursday after the insurance software provider reported better-than-expected second-quarter revenue and raised its full-year outlook.

The company posted revenue of $289.5 million for the quarter ended January 31, 2025, surpassing analyst estimates of $285.54 million. This represents a 20% increase from the same quarter last year. However, adjusted earnings per share came in at $0.51, slightly below the $0.52 consensus estimate.

Guidewire’s annual recurring revenue (ARR) grew to $918.1 million, up from $864 million at the end of July 2024. The company secured 12 cloud deals in the quarter, with a focus on larger insurers.

"We delivered another excellent quarter driven by 12 cloud deals, with the majority at larger insurers who demand a platform that can handle their complexity and scale," said CEO Mike Rosenbaum.

For fiscal year 2025, Guidewire raised its revenue guidance to a range of $1.164 billion to $1.174 billion, up from its previous forecast. The company also increased its outlook for non-GAAP operating income to between $175 million and $185 million.

Chief Financial Officer Jeff Cooper cited the quarter’s outperformance and visibility into future ARR as reasons for the improved outlook. "This outperformance, combined with visibility into ARR from ramps in the second half of the year and a healthy pipeline, gives us the confidence to raise our full-year 2025 outlook," Cooper stated.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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