Guidewire Software Inc. Common Stock (GWRE)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business bought at a sensible price. Guidewire serves property and casualty insurers with policy, claims, and billing software. That specialized position may create stickiness, but the figures show uneven execution. In fiscal 2026 (period ended 2026-07-31), revenue was about $1.5B and net income $139.3M, or diluted EPS $1.63. In fiscal 2025, revenue was about $1.2B and net income $69.8M, or $0.81. Fiscal 2024 lost $6.1M, so FairStock labels it a TURNAROUND because it returned to profit after a loss within the last three years. The latest filed quarter, fiscal Q3 2026 (quarter ended 2026-04-30), showed revenue of $372.5M but net income of only $16.5M and diluted EPS $0.19, down from $46.0M and $0.54 in fiscal Q3 2025. Financial health is decent: Piotroski 8/9 and Altman 5.82, but ROCE 3.54% and ROE 10.51% are modest for the multiple. At the close on 2026-10-13, FairStock calculates P/E 101.71, P/B 11.39, EV/EBITDA 67.85, FCF yield 2.6%, and Graham Number $23.11. The margin of safety is -617.35%, meaning the price is far above asset-and-earnings based value. FairStock Score is 35/100. Growth is real, but profit quality is uneven. I would need more consistent earnings and a lower price before calling it a bargain.

In plain English: Guidewire Software makes software for property and casualty insurance companies. It has grown sales and returned to profit, and its balance sheet looks sound, but earnings have been uneven and the stock price is very high compared with what the company earns and owns. At $165.78, the price looks expensive relative to the numbers shown.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-04-30) · fiscal Q2 2026 10-Q (period ended 2026-01-31) · fiscal Q1 2026 10-Q (period ended 2025-10-31) · fiscal Q3 2025 10-Q (period ended 2025-04-30) · FY2026 10-K (period ended 2026-07-31) · FY2025 10-K (period ended 2025-07-31) · FY2024 10-K (period ended 2024-07-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer