Guidewire Software Inc

In early September 2026, Guidewire Software reported fourth-quarter revenue of US$411.09 million and full-year revenue of US$1.48 billion, with annual net income rising to US$139.28 million even as quarterly profit eased versus the prior year. The company paired this with fiscal 2027 guidance that points to more moderate growth in revenue and ending ARR, tempering earlier enthusiasm about its cloud and AI-driven momentum. The guidance calls for total revenue of US$1.707 billion to US$1.727 billion and ending ARR of US$1.45 billion to US$1.46 billion, signaling slower growth than in fiscal 2026. This softer near-term outlook has led to a 21.1% drop in the stock, despite solid ARR trends, as investors reassess the premium valuation tied to cloud and AI adoption.

Shares of insurance software provider Guidewire Software fell 20.6% in afternoon trading after the company issued soft near-term revenue guidance that overshadowed its second-quarter results. Guidewire reported second-quarter revenue of $411.1 million, up 15.3% year over year, and non-GAAP earnings of $0.99 per share, with annual recurring revenue rising 20.3% to $1.24 billion, both beating Wall Street estimates. However, the company projected third-quarter revenue of $375 million at the midpoint, which came in 3.3% below analyst expectations of $387.6 million, raising concerns about slowing demand. The stock is down 14.5% since the beginning of the year and trades at $160.47 per share, 38.7% below its 52-week high of $261.88 from September 2025.

In midday trading, several stocks made notable moves. Guidewire Software plummeted 21% after issuing weaker-than-expected current-quarter revenue guidance of $372 million to $378 million, below the LSEG consensus of $387 million. Tesla dropped 6% following a National Highway Traffic Safety Administration investigation into whether its Cybercab meets federal safety standards, after the company launched robotaxis in Austin. Sandisk and KLA rallied more than 8% and 7% respectively, as the semiconductor sector gained ahead of the long weekend, with the VanEck Semiconductor ETF (SMH) up over 2% and the Roundhill Memory ETF (DRAM) up 5%. Quanex Building Products surged 19% after beating third-quarter estimates with adjusted earnings of 79 cents per share on revenue of $501.8 million, versus the FactSet consensus of 66 cents and $497.5 million. AMC Entertainment rose 6.5% after CEO Adam Aron criticized Robinhood's stock tokens as "contemptible, outrageous, disgusting," while Robinhood slipped nearly 1%. Credit monitoring firms Equifax, TransUnion, and Fair Isaac fell after Federal Housing Finance Agency Director Bill Pulte said they have been "overcharging Americans for too long," with Fair Isaac down over 15%, Equifax down 6.8%, and TransUnion down over 7%. Smith & Wesson gained 6% on an earnings beat, reporting 6 cents per share versus an expected loss of 6 cents, on revenue of $112.6 million versus the $98.7 million consensus. Lululemon Athletica tumbled 17% after forecasting current-quarter earnings of 93 to 98 cents per share on revenue of $2.29 billion to $2.32 billion, below analyst expectations of $2.40 per share and $2.53 billion. Zscaler slipped 5% despite beating earnings estimates, while Adobe fell 6% after announcing Anil Chakravarthy as its next CEO. Asana dropped 14% on weak guidance, Samsara advanced 4% on strong full-year outlook, UiPath lost 16% despite in-line guidance, and Oxford Industries sank 17% after cutting its full-year guidance.

In premarket trading, AMC Entertainment gained 5.5% after its CEO criticized Robinhood for offering stock tokens, calling the practice contemptible, while rare earth stocks rose following reports that some Chinese firms halted U.S. shipments. Smith & Wesson jumped 11.7% on an earnings beat, but Lululemon tumbled 20% on weak guidance, and Adobe slipped nearly 3% after naming Anil Chakravarthy as its next CEO. Planet Labs advanced 13% on strong results, while Guidewire Software fell 14.5% on disappointing revenue guidance, and Oxford Industries sank 17% after cutting its full-year outlook.

U.S. stocks pulled back on Friday as mounting U.S.-Iran conflict near the Strait of Hormuz drove up oil prices and long-term Treasury yields. Among the biggest gainers, Samsara jumped 13% after reporting second-quarter results and lifting full-year guidance, with adjusted earnings of $0.20 per share on revenue of $508.4 million, beating analyst expectations. DocuSign rose 2.3% after raising its full-year revenue outlook following its fiscal 2027 second-quarter results. On the downside, DSS fell 35% after a 53% surge tied to a public offering of common stock, while Lululemon dropped 18% after cutting its full-year sales guidance again, now expecting a 5% to 7% contraction to $10.35B-$10.50B. Guidewire declined 15% despite beating quarterly estimates, as its guidance embedded attrition normalization risks.

Guidewire Software reported first-quarter revenues of $372.5 million, a 26.9% year-on-year increase that exceeded analysts' expectations by 4.7%. The company, which provides a technology platform for property and casualty insurers, also posted an impressive beat on billings estimates and issued full-year revenue guidance slightly above consensus. Among four tracked vertical software stocks, Guidewire achieved the fastest revenue growth and the highest full-year guidance raise. However, the stock fell 11% since the report to $134.50, as investor expectations may have been even higher than published projections. The broader group saw revenues beat estimates by 3.7% on average, with next-quarter guidance 0.9% above consensus, and share prices up 1.9% on average since earnings.

Guidewire Software reported strong cloud deal activity and expanding AI adoption in its fiscal third quarter of 2026, closing 11 cloud deals including a seven-year expansion with Auto Club of Southern California and a strategic net-new cloud win with Bradesco Seguros in Brazil. The company also completed five ProNavigator deals, embedding AI-driven workflow automation into core insurance operations, and secured three PricingCenter wins, including its first U.S. deal at Oklahoma Farm Bureau. However, services revenue surged 32% year over year to $71.8 million, carrying a non-GAAP gross margin of just 14.3% compared with 74.1% for subscription and support, which dilutes the benefits of subscription-led growth. For fiscal 2026, Guidewire expects services revenues of about $270 million and a services gross margin of about 14%, while the stock currently carries a Zacks Rank #3 (Hold) with a Growth Score of B but weaker Value and Momentum scores.

Shares of nCino, JFrog, and Guidewire Software fell sharply in afternoon trading as a broader selloff hit the software sector, driven by fears that AI agents will erode traditional subscription models. nCino dropped 2.4%, JFrog fell 3.3%, and Guidewire Software declined 4.2%. The declines followed a nearly 6% drop in Alphabet and a slip in Microsoft, with the market extending concerns from Accenture's near-20% single-day plunge last week after it cut its growth outlook and cited AI compressing demand for IT services. Guidewire Software, which is down 45.4% year-to-date and trading 60.9% below its 52-week high, was also pressured by the release of new Anthropic AI models and geopolitical tensions after a US Apache helicopter went down near Oman.

Alarm.com posted the biggest analyst estimate beat and highest full-year guidance raise among four tracked vertical software stocks in Q1. The company reported revenues of $265.2 million, up 11% year on year, exceeding analysts' expectations by 5.6%, with strong beats on billings and EBITDA. Manhattan Associates delivered revenues of $282.2 million, up 7.4% year on year and beating estimates by 3.3%, while Bentley Systems grew revenues 14.5% to $424.2 million but missed billings estimates significantly. Guidewire Software achieved the fastest revenue growth at 26.9% to $372.5 million, beating estimates by 4.7%, yet provided the weakest full-year guidance update and saw its stock fall 22.4%. As a group, the four companies beat revenue consensus by 3.7% and guided in line for the next quarter, but their average share price has declined 6.7% since reporting.