Shares of Guidewire (NYSE: GWRE) surged 15.21% in after-hours trading on Thursday following the release of its fourth-quarter fiscal year 2025 financial results, which exceeded analyst expectations across key metrics.
The insurance software provider reported quarterly earnings of $0.84 per share, significantly beating the analyst consensus estimate of $0.64 by 32.28%. This represents a 35.48% increase from earnings of $0.62 per share in the same period last year. Guidewire's quarterly revenue also impressed, coming in at $356.570 million, surpassing the analyst consensus estimate of $337.858 million by 5.54%. The reported revenue marks a 22.32% year-over-year increase from $291.515 million.
Guidewire's strong performance was driven by robust cloud adoption, with the company executing 19 cloud deals in the fourth quarter. Notably, Guidewire secured a significant 10-year agreement with a major Tier-1 insurer, contributing to the company surpassing $1 billion in Annual Recurring Revenue (ARR). The positive results and outlook have bolstered investor confidence, as reflected in the stock's after-hours surge.