Guidewire Software (GWRE) posted "solid" Q1 results, driven by continued margin expansion and cloud momentum, RBC Capital Markets said in a Wednesday note.
The company reported fiscal Q1 adjusted earnings late Wednesday of $0.66 per diluted share, up from $0.43 a year earlier, as revenue increased to $332.6 million from $262.9 million. Guidewire raised its fiscal 2026 revenue outlook to between $1.40 billion and $1.42 billion, from $1.39 billion to $1.41 billion previously.
RBC noted that Guidewire closed eight cloud deal during the quarter, including five "significant deals" in North America, while gross margins for both subscriptions and services improved sequentially and year-over-year.
The company's fiscal Q2 and updated fiscal 2026 revenue projections are also above market expectations, the investment firm added.
RBC reiterated its outperform rating on Guidewire Software, with a $300 price target.
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