Compared to Estimates, Guidewire Software (GWRE) Q1 Earnings: A Look at Key Metrics

For the quarter ended October 2025, Guidewire Software (GWRE) reported revenue of $332.64 million, up 26.5% over the same period last year. EPS came in at $0.66, compared to $0.43 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $317.24 million, representing a surprise of +4.86%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.66.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.Here is how Guidewire Software performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:Annual recurring revenue: $1.06 billion versus the four-analyst average estimate of $1.05 billion.Revenue- Services: $68.47 million compared to the $59.81 million average estimate based on five analysts. The reported number represents a change of +22.7% year over year.Revenue- License: $41.97 million versus the five-analyst average estimate of $39.53 million. The reported number represents a year-over-year change of +12.3%.Revenue- Subscription and support: $222.2 million versus $217.95 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +30.9% change.Revenue- Subscription and support- Subscription: $207.46 million versus the four-analyst average estimate of $202.41 million. The reported number represents a year-over-year change of +35.7%.Revenue- License- Term license: $41.97 million versus the three-analyst average estimate of $38.44 million. The reported number represents a year-over-year change of +12.3%.Revenue- Subscription and support- Support: $14.74 million versus the three-analyst average estimate of $15.74 million. The reported number represents a year-over-year change of -12.7%.Gross profit- Subscription and support: $158.28 million versus the four-analyst average estimate of $153.69 million.Gross profit- Services: $9.92 million versus $8.99 million estimated by four analysts on average.Gross profit- License: $41.32 million versus $39.93 million estimated by four analysts on average.View all Key Company Metrics for Guidewire Software here>>>Shares of Guidewire Software have returned -2% over the past month versus the Zacks S&P 500 composite's +0.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Guidewire Software, Inc. (GWRE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks