Zacks Research Issues Pessimistic Estimate for GWRE Earnings

Key Points

• Zacks Research trimmed its Q3 2026 EPS estimate for Guidewire Software to $0.31 from $0.32 and kept a Hold rating on the stock.
• Despite the lower forecast, Guidewire’s most recent quarterly results were strong: it reported $1.17 EPS versus $0.77 expected, with revenue up 24% year over year to $359.1 million.
• Analyst sentiment is still generally positive, with 11 Buy ratings and an average price target of $244.46, even as several firms have recently lowered their targets.

Guidewire Software, Inc. (NYSE:GWRE - Free Report) - Investment analysts at Zacks Research cut their Q3 2026 earnings per share (EPS) estimates for shares of Guidewire Software in a research note issued on Tuesday, May 26th. Zacks Research analyst Team now forecasts that the technology company will post earnings per share of $0.31 for the quarter, down from their previous forecast of $0.32. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Guidewire Software's current full-year earnings is $1.84 per share. Zacks Research also issued estimates for Guidewire Software's FY2026 earnings at $1.81 EPS, Q4 2027 earnings at $0.69 EPS, FY2027 earnings at $2.45 EPS and Q1 2028 earnings at $0.81 EPS.

A number of other equities research analysts have also weighed in on the company. Royal Bank Of Canada decreased their target price on Guidewire Software from $300.00 to $250.00 and set an "outperform" rating for the company in a research report on Friday, March 6th. DA Davidson reaffirmed a "buy" rating and set a $246.00 target price on shares of Guidewire Software in a research report on Tuesday, March 10th. Oppenheimer cut their price target on Guidewire Software from $250.00 to $180.00 and set an "outperform" rating on the stock in a report on Monday, May 18th. BTIG Research lifted their price target on Guidewire Software from $175.00 to $200.00 and gave the company a "buy" rating in a report on Friday, March 6th. Finally, Wells Fargo & Company cut their price target on Guidewire Software from $250.00 to $210.00 and set an "overweight" rating on the stock in a report on Wednesday, February 4th. Eleven research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $244.46.

Guidewire Software Stock Performance

NYSE GWRE opened at $133.18 on Thursday. Guidewire Software has a 1-year low of $115.57 and a 1-year high of $272.60. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.93 and a quick ratio of 2.93. The stock has a market capitalization of $11.28 billion, a PE ratio of 60.54 and a beta of 0.91. The business has a 50 day simple moving average of $140.43 and a two-hundred day simple moving average of $163.76.

Guidewire Software (NYSE:GWRE - Get Free Report) last released its quarterly earnings results on Thursday, March 5th. The technology company reported $1.17 earnings per share for the quarter, beating the consensus estimate of $0.77 by $0.40. The business had revenue of $359.10 million during the quarter, compared to analysts' expectations of $342.88 million. Guidewire Software had a return on equity of 13.44% and a net margin of 14.11%.The firm's revenue for the quarter was up 24.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.51 EPS.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Measured Wealth Private Client Group LLC purchased a new position in Guidewire Software during the 3rd quarter worth $29,000. Root Financial Partners LLC purchased a new position in Guidewire Software during the 3rd quarter worth $29,000. Advisors Asset Management Inc. purchased a new position in Guidewire Software during the 1st quarter worth $25,000. Cornerstone Planning Group LLC grew its stake in Guidewire Software by 620.0% during the 3rd quarter. Cornerstone Planning Group LLC now owns 144 shares of the technology company's stock worth $34,000 after buying an additional 124 shares during the last quarter. Finally, Hazlett Burt & Watson Inc. purchased a new position in Guidewire Software during the 3rd quarter worth $35,000.

Insider Activity

In related news, CEO Michael George Rosenbaum sold 4,737 shares of the business's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $163.86, for a total transaction of $776,204.82. Following the transaction, the chief executive officer directly owned 221,206 shares in the company, valued at $36,246,815.16. The trade was a 2.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, President John P. Mullen sold 6,576 shares of the business's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $163.86, for a total value of $1,077,543.36. Following the transaction, the president owned 135,407 shares in the company, valued at approximately $22,187,791.02. This trade represents a 4.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 32,479 shares of company stock worth $5,024,174. 0.46% of the stock is currently owned by company insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.