Guidewire Software Spikes After Earnings. The Stock Is on Pace for a Record High. -- Barrons.com

Dow Jones
06-05

By Nate Wolf

Guidewire Software stock was climbing sharply after the insurance technology company reported fiscal third-quarter earnings that soared past Wall Street estimates.

The company posted adjusted earnings of 88 cents a share, almost double the 46 cents that analysts had forecast. Revenue came in at $294 million, above the consensus call for $286 million and up 22% from the prior year.

The stock was up 19% to $258.90 Wednesday, putting it on track for a new all-time high and its largest daily percentage increase on record.

Wall Street was especially pleased by management's guidance for annual recurring revenue. The company projected year-end ARR of between $1.01 billion and $1.02 billion, up $12 million from the prior quarter.

"Guidewire continues to execute on all cylinders," analysts at Raymond James wrote in a research note Wednesday, arguing that there are signs of insurers moving on from older software systems in favor of cloud offerings. Guidewire struck 17 deals for its InsuranceSuite or InsuranceNow cloud-based software last quarter.

Raymond James reiterated an Outperform rating for the stock and lifted its price target to $255 from $225.

Analysts at Oppenheimer had a similar take on Guidewire's growth potential, citing the number of cloud deals reached last quarter and the momentum of InsuranceNow. The group boosted their price target to $275 from $230 and reiterated an Outperform rating.

Write to Nate Wolf at nate.wolf@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

(END) Dow Jones Newswires

June 04, 2025 12:21 ET (16:21 GMT)

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