How did Guidewire Software (NYSE:GWRE) perform in Q3 FY2026?

Guidewire reported revenue of $372.5 million, up 27% year-over-year, driven by strong growth in its cloud subscription business and AI-enhanced insurance solutions.

Which revenue segments drove Guidewire’s growth?

The subscription and support segment rose 35% to $244.7 million, services revenue climbed 32% to $71.8 million, while license revenue declined slightly by 2%.

How did Guidewire’s ARR change this quarter?

Annual recurring revenue (ARR) increased to $1.147 billion, up from $1.041 billion at the start of the fiscal year, reflecting steady customer retention and subscription expansion.

Is Guidewire profitable now?

On a GAAP basis, net income was reduced by a $20.1 million foreign currency loss, but operationally GAAP income from operations rose to $30.6 million. On a non-GAAP basis, net income reached $69.6 million, or $0.82 per diluted share.

What drove the improvement in profitability?

Non-GAAP operating income surged to $77.8 million from $46.1 million last year, reflecting improved operational efficiency despite foreign exchange headwinds.

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Guidewire surpasses Q3 expectations as cloud and AI adoption accelerate

Written by Liezl GambePublished Jun. 4 2026Last Updated Jun. 4 2026

Guidewire Software (NYSE:GWRE) reported strong financial results for its fiscal third quarter ended April 30, 2026, delivering a 27% year-over-year revenue increase to $372.5 million.

The performance, which exceeded market expectations, was bolstered by sustained momentum in the company’s cloud subscription business and increasing adoption of its AI-enhanced insurance applications.

The company’s growth was driven largely by its subscription and support segment, which rose 35% to $244.7 million.

Services revenue also contributed significantly, climbing 32% to $71.8 million, while license revenue saw a slight decline of 2%.

As of April 30, Guidewire’s annual recurring revenue (ARR) reached $1.147 billion, up from $1.041 billion at the start of the fiscal year.

Profitability metrics reflected improved operational efficiency despite foreign exchange headwinds.

GAAP income from operations climbed to $30.6 million from $4.5 million in the same quarter last year.

On a non-GAAP basis, income from operations surged to $77.8 million compared to $46.1 million in the prior-year period.

While GAAP net income was tempered by a $20.1 million foreign currency loss, the company’s non-GAAP net income rose to $69.6 million, resulting in non-GAAP diluted net income per share of $0.82.

Meanwhile, Guidewire’s liquidity remains solid, with $1.147 billion in cash, cash equivalents, and investments.

The company continues to execute on its share repurchase program authorized by the board in January 2026.

During the third quarter, the company repurchased approximately 1.7 million shares at an average price of $147.07, leaving $240.5 million available for future repurchases under the current authorization.