Guidewire Software's stock surged 5.01% in after-hours trading, following the release of its second quarter fiscal year 2026 financial results that significantly exceeded analyst expectations.

The insurance software firm reported quarterly adjusted earnings of $1.17 per share, beating the consensus estimate of $0.77 by 51.36%. Revenue for the quarter reached $359.1 million, surpassing the $341.7 million estimate, while adjusted net income came in at $100.7 million compared to the expected $66.8 million.

Company executives cited a 33% year-over-year increase in subscription and support revenue, AI-driven core system modernization, and durable demand for multi-year deals as key growth drivers. Guidewire also raised its full-year revenue outlook to between $1.438 billion and $1.448 billion, up from its previous forecast and above analyst consensus estimates.