Guidewire Software (GWRE) Q4 earnings: Taking a look at key metrics versus estimates

Guidewire Software (GWRE) reported $356.57 million in revenue for the quarter ended July 2025, representing a year-over-year increase of 22.3%. EPS of $0.84 for the same period compares to $0.62 a year ago.

The reported revenue represents a surprise of +5.76% over the Zacks Consensus Estimate of $337.15 million. With the consensus EPS estimate being $0.62, the EPS surprise was +35.48%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Guidewire Software performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Annual recurring revenue: $1.03 billion versus the four-analyst average estimate of $1.02 billion.

Revenue- Subscription and support: $201.89 million versus $194.68 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +33% change.

Revenues- License: $93.64 million versus the five-analyst average estimate of $86.17 million. The reported number represents a year-over-year change of +5.4%.

Revenues- Services: $61.04 million versus the five-analyst average estimate of $56.81 million. The reported number represents a year-over-year change of +20.1%.

Gross profit- Subscription and support: $137.32 million versus the four-analyst average estimate of $131.32 million.

Gross profit- Services: $1.76 million versus $4.72 million estimated by four analysts on average.

Gross profit- License: $92.73 million versus $84.37 million estimated by four analysts on average.

Shares of Guidewire Software have returned -2.8% over the past month versus the Zacks S&P 500 composite's +3.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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