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Oct 31
Guidewire Q1 2026 Earnings Report
Guidewire reported strong first quarter fiscal year 2026 financial results, exceeding outlook on all metrics and raising its full fiscal year outlook.
Key Takeaways
Guidewire announced robust first quarter fiscal year 2026 results, with total revenue increasing by 27% year-over-year to $332.6 million and GAAP net income reaching $31.3 million. The company's ARR grew by 22% year-over-year, reflecting strong sales momentum, and it raised its full fiscal year 2026 outlook.
Total revenue for Q1 FY26 was $332.6 million, a 27% increase compared to Q1 FY25.
GAAP net income for Q1 FY26 was $31.3 million, with GAAP diluted EPS of $0.36.
Non-GAAP net income for Q1 FY26 was $57.0 million, with non-GAAP diluted EPS of $0.66.
Annual Recurring Revenue (ARR) reached $1,063 million as of October 31, 2025, demonstrating 22% year-over-year growth.
Guidewire
Guidewire
Guidewire Revenue by Segment
Revenue by Segment
Subscription and support Revenue
CapyFin.comLicense Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
Guidewire has updated its full fiscal year 2026 outlook, projecting higher ARR, total revenue, and non-GAAP operating income, while also providing guidance for the second quarter of fiscal year 2026.
Positive Outlook
- Full fiscal year 2026 ending ARR is projected between $1,220 million and $1,230 million.
- Full fiscal year 2026 total revenue is projected between $1,403 million and $1,419 million.
- Full fiscal year 2026 non-GAAP operating income is projected between $266 million and $282 million.
- Full fiscal year 2026 operating cash flow is projected between $355 million and $375 million.
- Second quarter fiscal year 2026 ending ARR is projected between $1,107 million and $1,113 million.
Challenges Ahead
- Second quarter fiscal year 2026 GAAP operating income is projected between $19 million and $25 million, which is lower than the non-GAAP projection.
- The GAAP operating income for the full fiscal year 2026 is projected between $72 million and $88 million, significantly lower than the non-GAAP projection.
- No specific negative factors were highlighted in the forward guidance, but the difference between GAAP and non-GAAP figures suggests ongoing adjustments.
- The guidance does not provide specific details on potential market challenges or competitive pressures.
- The guidance does not include any specific warnings or risks related to achieving the projected figures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income