Guidewire Software Revenue Jumps 25% to $691.7M in H1 FY2026

Guidewire Software, Inc. (NYSE: GWRE), a provider of software platforms for property and casualty insurers, reported revenue of $691.7 million for the six months ending January 31, 2026, a 25% increase from $552.4 million in the same period a year earlier. Read more earnings reports.

The company swung to an operating profit of $56.9 million for the first half of fiscal 2026, compared to operating income of $7.0 million in the prior-year period. Net income for the six-month period was not explicitly reported, but diluted earnings per share reached $1.06, compared to a loss of $0.34 per share a year earlier.

For the three months ending January 31, 2026, Guidewire reported revenue of $359.1 million, up 24% from $289.5 million in the second quarter of fiscal 2025. Operating income for the quarter was $38.4 million, compared to $11.7 million in the year-ago quarter. Diluted earnings per share for the quarter were $0.70, compared to a loss of $0.45 per share a year earlier.

Gross profit for the six-month period was $441.0 million, up from $337.5 million in the prior-year period. The company's gross margin expanded to 63.8% from 61.1% a year earlier.

Operating expenses for the first half of fiscal 2026 totaled $384.1 million, compared to $330.5 million in the same period last year. Research and development spending rose to $161.6 million from $139.1 million year-over-year.

Cash from operations for the six months ending January 31, 2026 was $44.6 million, compared to $23.7 million in the prior-year period. The company spent $204.6 million on investing activities, primarily driven by investments in short-term securities and property acquisitions.

Cash and cash equivalents stood at $407.9 million as of January 31, 2026, down from $697.9 million at the end of fiscal 2025 on July 31, 2025. The decline reflects cash used in financing activities of $134.3 million during the six-month period.

Total assets were $2.69 billion as of January 31, 2026, compared to $2.72 billion six months earlier. Goodwill increased to $422.1 million from $393.9 million, reflecting a $26.1 million acquisition completed during the period.

Long-term debt remained relatively stable at $676.3 million as of January 31, 2026, compared to $674.6 million at the end of fiscal 2025. Total liabilities decreased to $1.18 billion from $1.26 billion over the six-month period.

Stockholders' equity rose to $1.51 billion as of January 31, 2026, from $1.46 billion six months earlier. The company reported 84.7 million shares outstanding as of January 31, 2026.