Guidewire Falls as Fiscal 2027 Outlook Overshadows Strong Q4 Results

Guidewire Software (GWRE) is down 21.9% today. Here is some analysis on what might have caused this price movement.

Analysis: The selloff appears tied mainly to Guidewire’s forward outlook rather than its reported quarter. While fourth-quarter results were strong, management guided first-quarter fiscal 2027 total revenue to $372 million to $378 million, and investors seem to be reacting to slower near-term growth, lower expected license revenue, and a more cautious setup for ARR growth.

Details:

Guidewire reported fourth-quarter fiscal 2026 revenue of $411.1 million, up 15% year over year, and non-GAAP earnings per share of $0.99, capping a fiscal year in which total revenue rose 23%.

Management’s first-quarter fiscal 2027 outlook called for total revenue of $372 million to $378 million and ending ARR of $1.253 billion to $1.259 billion, which appears to have landed below market expectations for the quarter.

For fiscal 2027, the company projected total revenue of $1.707 billion to $1.727 billion and said ARR growth should be about 18% at the midpoint, compared with 19% growth delivered in fiscal 2026.

Management also said fiscal 2026 benefited from record-low attrition that added roughly one percentage point to ARR growth, while fiscal 2027 assumes attrition normalizes and license revenue declines further as customers continue shifting to the cloud.

Sources:

Guidewire, SEC, MarketBeat

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$GWRE Insider Trading Activity

$GWRE insiders have traded $GWRE stock on the open market 40 times in the past 6 months. Of those trades, 0 have been purchases and 40 have been sales.

Here’s a breakdown of recent trading of $GWRE stock by insiders over the last 6 months:

MICHAEL GEORGE ROSENBAUM (Chief Executive Officer) has made 0 purchases and 27 sales selling 40,567 shares for an estimated $5,887,754.
JOHN P MULLEN (President) has made 0 purchases and 3 sales selling 25,268 shares for an estimated $4,251,174.
JEFFREY ELLIOTT COOPER (Chief Financial Officer) has made 0 purchases and 4 sales selling 10,634 shares for an estimated $1,522,558.
DAVID FRANKLIN PETERSON (Chief Accounting Officer) has made 0 purchases and 3 sales selling 3,019 shares for an estimated $573,943.
JAMES WINSTON KING (Chief Admin Officer, Gen Couns) has made 0 purchases and 3 sales selling 3,684 shares for an estimated $502,643.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

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$GWRE Hedge Fund Activity

We have seen 249 institutional investors add shares of $GWRE stock to their portfolio, and 481 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

BAMCO INC /NY/ added 2,397,003 shares (+36.3%) to their portfolio in Q2 2026, for an estimated $294,951,219
JPMORGAN CHASE & CO added 2,249,339 shares (+inf%) to their portfolio in Q2 2026, for an estimated $276,781,163
ROYAL BANK OF CANADA removed 1,844,455 shares (-90.6%) from their portfolio in Q2 2026, for an estimated $226,960,187
VAN ECK ASSOCIATES CORP added 1,215,855 shares (+inf%) to their portfolio in Q2 2026, for an estimated $149,610,957
T. ROWE PRICE INVESTMENT MANAGEMENT, INC. added 1,198,824 shares (+inf%) to their portfolio in Q2 2026, for an estimated $147,515,293
CURATED WEALTH PARTNERS LLC added 1,120,357 shares (+inf%) to their portfolio in Q2 2026, for an estimated $137,859,928
CAPITAL WORLD INVESTORS removed 1,006,940 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $150,597,946

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$GWRE Price Targets

Multiple analysts have issued price targets for $GWRE recently. We have seen 8 analysts offer price targets for $GWRE in the last 6 months, with a median target of $207.5.

Here are some recent targets:

Allan Verkhovski from BTIG set a target price of $175.0 on 07/02/2026
Peter Heckmann from DA Davidson set a target price of $222.0 on 06/08/2026
Rishi Jaluria from RBC Capital set a target price of $215.0 on 06/05/2026
Michael Turrin from Wells Fargo set a target price of $190.0 on 06/05/2026
Aaron Kimson from Citizens set a target price of $220.0 on 06/05/2026
Parker Lane from Stifel set a target price of $200.0 on 06/05/2026
Adam Hotchkiss from Goldman Sachs set a target price of $225.0 on 06/05/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.