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Guidewire Software GWRE

Guidewire Software scores good on business quality (6.3 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$167.32Oct 9, 2026
Business qualityGood
Next earningsDec 1, 2026
Insiders, 90 daysSelling

Why it matters

  1. What Guidewire Software does

    Guidewire Software builds core cloud software systems for property and casualty insurers. Insurance carriers pay subscription and support fees to run their entire underwriting, billing, and claims workflows on this platform. The business is accelerating its cloud migration, pushing more policy administration workloads onto its managed infrastructure to capture recurring SaaS revenue.

  2. What it does best

    Guidewire dominates property and casualty insurance core systems with 22.7% revenue growth, outpacing peers like Trimble. This scale creates deep operational integration that makes replacing the software an expensive multi-year IT overhaul for carriers.

  3. The main risk

    Trading at $152.15 against an intrinsic value of $110.23, the market prices in perfection. Any growth stutter from enterprise clients delaying cloud migrations will compress the lofty 89.5 P/E multiple.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin sits at 10.2% with a net margin of 9.4%, showing improving conversion as revenue scales past $1.4B. Free cash flow margin reaches 63%, ranking in the top decile of its sector.

MoatWeak

The software creates high switching costs by embedding itself into core insurer underwriting workflows. Its gross margin sits in the middle of the pack at 64.2%, trailing elite software peers like FICO at 85%.

GrowthFast

Revenue reached $1.4B, up from $1.2B in 2025, driven by accelerating software subscriptions. Growth sits in the top quartile of its sector at the 74th percentile.

Financial healthFair

Guidewire holds $753 million in cash with an interest coverage ratio of 11.2x, keeping debt service manageable. Free cash flow reached $359 million, marking a steady climb from $177 million in 2024.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $5.7M outside pre-planned sales.

Our sealed record on GWRE

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is GWRE a good business?

Guidewire Software scores good on the Cluenex quality check (6.3 of 10), measured against its own industry. Profitability is weak, moat weak, growth fast and financial health fair.

Are insiders buying GWRE?

In the last 90 days of SEC Form 4 filings: 1 sold $5.7M outside pre-planned sales.

When does GWRE report earnings?

Dec 1, 2026.

For members

See GWRE today

  • Today's verdict on GWRE, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Guidewire Software (GWRE)”, https://cluenex.com/stocks/gwre/, data as of Oct 10, 2026.