Q1 EPS Forecast for Guidewire Software Lowered by Analyst

Key Points

• Zacks Research cut its Q1 2027 EPS estimate for Guidewire Software to $0.37 from $0.56, while keeping a Hold rating on the stock.
• Despite the lower outlook, Guidewire’s most recent quarterly results beat expectations, reporting $0.82 EPS versus $0.74 estimated and revenue of $372.54 million, up 26.9% year over year.
• Other brokerages remain mostly constructive, with consensus coverage at “Moderate Buy”, though several firms have recently reduced their price targets on the shares.

Guidewire Software, Inc. (NYSE:GWRE - Free Report) - Research analysts at Zacks Research dropped their Q1 2027 earnings per share estimates for shares of Guidewire Software in a research note issued on Thursday, June 25th. Zacks Research analyst Team now forecasts that the technology company will post earnings of $0.37 per share for the quarter, down from their previous estimate of $0.56. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Guidewire Software's current full-year earnings is $1.83 per share. Zacks Research also issued estimates for Guidewire Software's Q2 2027 earnings at $0.55 EPS, Q3 2027 earnings at $0.45 EPS, FY2027 earnings at $2.06 EPS, Q1 2028 earnings at $0.61 EPS, Q2 2028 earnings at $0.64 EPS, Q3 2028 earnings at $0.65 EPS and FY2028 earnings at $2.64 EPS.

Guidewire Software (NYSE:GWRE - Get Free Report) last posted its quarterly earnings data on Thursday, June 4th. The technology company reported $0.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.74 by $0.08. Guidewire Software had a net margin of 11.25% and a return on equity of 12.62%. The company had revenue of $372.54 million for the quarter, compared to analyst estimates of $355.92 million. During the same quarter last year, the firm posted $0.88 earnings per share. The business's quarterly revenue was up 26.9% on a year-over-year basis.

A number of other brokerages also recently commented on GWRE. DA Davidson reduced their price target on Guidewire Software from $246.00 to $222.00 and set a "buy" rating for the company in a report on Monday, June 8th. Wells Fargo & Company cut their target price on Guidewire Software from $210.00 to $190.00 and set an "overweight" rating on the stock in a research report on Friday, June 5th. Stifel Nicolaus cut their target price on Guidewire Software from $225.00 to $200.00 and set a "buy" rating on the stock in a research report on Friday, June 5th. Royal Bank Of Canada dropped their price target on shares of Guidewire Software from $250.00 to $215.00 and set an "outperform" rating for the company in a research note on Friday, June 5th. Finally, Oppenheimer cut their price target on shares of Guidewire Software from $250.00 to $180.00 and set an "outperform" rating on the stock in a report on Monday, May 18th. Ten investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $221.36.

Guidewire Software Price Performance

Shares of GWRE stock opened at $120.69 on Tuesday. The company has a current ratio of 2.44, a quick ratio of 2.44 and a debt-to-equity ratio of 0.51. The firm has a fifty day simple moving average of $132.25 and a 200-day simple moving average of $149.71. The company has a market capitalization of $10.05 billion, a PE ratio of 65.24 and a beta of 0.93. Guidewire Software has a twelve month low of $102.30 and a twelve month high of $272.60.

Hedge Funds Weigh In On Guidewire Software

A number of hedge funds have recently added to or reduced their stakes in the business. Advisors Asset Management Inc. acquired a new stake in shares of Guidewire Software during the first quarter worth $25,000. Measured Wealth Private Client Group LLC acquired a new position in shares of Guidewire Software in the 3rd quarter valued at about $29,000. Flagship Harbor Advisors LLC bought a new stake in shares of Guidewire Software during the 4th quarter valued at about $36,000. Leonteq Securities AG bought a new stake in shares of Guidewire Software during the 1st quarter valued at about $36,000. Finally, Bogart Wealth LLC raised its stake in Guidewire Software by 127.8% during the first quarter. Bogart Wealth LLC now owns 246 shares of the technology company's stock worth $37,000 after acquiring an additional 138 shares during the period.

Insider Buying and Selling

In other news, CFO Jeffrey Elliott Cooper sold 2,594 shares of Guidewire Software stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $118.74, for a total value of $308,011.56. Following the completion of the transaction, the chief financial officer owned 63,467 shares in the company, valued at approximately $7,536,071.58. This trade represents a 3.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael George Rosenbaum sold 5,830 shares of the business's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $118.74, for a total value of $692,254.20. Following the completion of the sale, the chief executive officer owned 199,776 shares of the company's stock, valued at $23,721,402.24. This trade represents a 2.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 29,709 shares of company stock worth $3,740,332. Corporate insiders own 0.46% of the company's stock.

Guidewire Software News Summary

Here are the key news stories impacting Guidewire Software this week:

• Positive Sentiment: Guidewire is still seen favorably by some brokers, with consensus brokerage coverage noted as a “Moderate Buy,” suggesting the long-term thesis remains intact. Guidewire Software, Inc. NYSE: GWRE Given Consensus Recommendation of "Moderate Buy" by Brokerages
• Positive Sentiment: A recent commentary argued that AI could be a tailwind rather than a threat for Guidewire, which may support optimism about the company’s product positioning. Guidewire: AI Is A Tailwind, Not A Threat
• Neutral Sentiment: Zacks Research reiterated a “Hold” rating while making positive estimate commentary for one quarter, but the rating itself does not imply a strong near-term catalyst. Zacks Research Has Positive Estimate for GWRE Q4 Earnings
• Negative Sentiment: Zacks Research lowered earnings estimates for multiple upcoming periods, including Q1 2027, Q2 2027, Q3 2027, FY2027, Q1 2028, Q2 2028, Q3 2028, and FY2028, signaling expectations for slower profit growth ahead.
• Negative Sentiment: The most notable cuts were for FY2028 EPS to $2.64 from $3.29 and FY2027 EPS to $2.06 from $2.45, which likely pressured the stock as investors recalibrate valuation assumptions.

Guidewire Software Company Profile

Guidewire Software, Inc develops software products and cloud services for property and casualty (P&C) insurance carriers. Headquartered in San Mateo, California, the company's offerings are designed to help insurers manage the core functions of their business—policy administration, billing and claims—while supporting digital engagement, analytics and operational modernization.

Guidewire's core product portfolio is commonly known as the InsuranceSuite, which includes PolicyCenter for policy administration, BillingCenter for billing and receivables, and ClaimCenter for claims management.

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