Guidewire Software, Inc. (NYSE:GWRE) on Thursday reported better-than-expected second-quarter results and raised its fiscal 2026 sales outlook.

Revenue rose 24% year over year (Y/Y) to $359.1 million, exceeding the consensus of $341.7 million. Adjusted EPS of $1.17 beat the consensus of 77 cents.

Guidewire expects the third-quarter fiscal 2026 ending ARR of $1.14 billion to $1.15 billion, subscription and support revenue of $239 million to $243 million, and adjusted operating income of $59 million to $65 million. The company projects quarterly revenue of $352 million to $358 million, above the analyst consensus estimate of $339.78 million.

For fiscal 2026, Guidewire raised its revenue outlook to $1.438 billion to $1.448 billion from its prior forecast of $1.403 billion to $1.419 billion. Analysts expect $1.414 billion. The company expects fiscal-year ending ARR of $1.229 billion to $1.237 billion, subscription and support revenue of $962 million to $966 million, and adjusted operating income of $293 million to $303 million.

Guidewire Software shares gained 4.7% to trade at $168.40 on Friday.

These analysts made changes to their price targets on Guidewire Software following earnings announcement.

• BTIG analyst Allan Verkhovski maintained the stock with a Buy and raised the price target from $175 to $200.
• Stifel analyst Parker Lane maintained Guidewire with a Buy and lowered the price target from $300 to $250.
• RBC Capital analyst Rishi Jaluria maintained the stock with an Outperform rating and lowered the price target from $300 to $250.

Considering buying GWRE stock? Here’s what analysts think:

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