Guidewire's stock surged 5.21% intraday following the release of its fiscal Q1 2026 results, which surpassed analyst expectations. The company reported robust revenue growth and raised its full-year revenue guidance, signaling confidence in its cloud platform and AI-driven products.
Q1 revenue rose 27% year-over-year to $332.6 million, beating estimates of $316.6 million, while adjusted EPS of $0.66 exceeded the $0.61 consensus. Guidewire also lifted its FY2026 revenue outlook to a range of $1.403 billion to $1.419 billion, above the FactSet estimate of $1.4 billion.
Key growth drivers included a 22% increase in Annual Recurring Revenue (ARR) and the launch of AI-powered underwriting tools. Analysts remain bullish, with a median 12-month price target of $278, reflecting 29.5% upside potential.
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