Guidewire Software (GWRE) posted solid fiscal Q3 results but a mixed 2026 guidance, with fiscal 2026 annual recurring revenue coming in behind consensus, RBC said in a Thursday note.

The report said the miss sent the stock down sharply, but pointed to continued Cloud momentum and traction with newer products like PricingCenter and ProNavigator.

"We continue to view GWRE as one of the more defensive assets in software and maintain our Outperform rating," the note said.

Still, Oppenheimer cut its price target to $215 from $250, on peer multiple compression, following the results.

Shares were down more than 8% in Friday trading.

Price: 138.32, Change: -12.86, Percent Change: -8.50