The quarter was slightly below the market’s revenue bar but above its EPS bar. Published estimates available before the release put Q4 revenue near $418.5 million and adjusted EPS near $0.93; Guidewire delivered $411.1 million and $0.99, respectively. The result is a modest top-line miss offset by better-than-expected earnings, rather than a clean beat. Q4 revenue still rose 15% year over year.
| Metric | Q4 FY26 | Q4 FY25 | Versus expectation |
|---|---|---|---|
| Total revenue | $411.1M (Financial Highlights) | $356.6M (Income Statement) | ~$418.5M consensus |
| Subscription and support revenue | $266.7M (Financial Highlights) | $201.9M (Income Statement) | — |
| Non-GAAP diluted EPS | $0.99 (EPS reconciliation) | $0.81 (EPS reconciliation) | ~$0.93 consensus |
| GAAP diluted EPS | $0.38 (Income Statement) | $0.60 (Income Statement) | — |
| Operating cash flow | $283.9M (Cash Flow statement) | $244.8M (Cash Flow statement) | — |
| Free cash flow | $276.7M (Free cash flow reconciliation) | $237.7M (Free cash flow reconciliation) | — |
The recurring-revenue engine remained the strongest part of the filing. ARR reached $1.242 billion on a constant-currency basis, up 19%, while fully ramped ARR increased 22% to $1.578 billion. 〔0〕 That supports the company’s longer-term cloud transition story even though license revenue fell 18% in the quarter and total revenue undershot consensus.
Profitability and cash generation improved materially, but the quality of the EPS beat needs context. Full-year non-GAAP EPS increased to $3.43 from $2.51, operating cash flow rose to $389.7 million from $300.9 million, and free cash flow reached $358.7 million from $280.4 million. However, Q4 GAAP earnings were pressured by a $24.0 million foreign-currency loss, while the adjusted result excludes $23.975 million of unrealized foreign-exchange losses and $46.8 million of stock-based compensation.
The new FY27 operating-income outlook is constructive, but not enough to erase the revenue miss. Guidewire targets $403 million to $423 million of non-GAAP operating income and $197 million to $217 million of GAAP operating income for FY27. That implies roughly 19% to 24% growth from FY26 non-GAAP operating income of $339.9 million, while the filing provides no FY27 revenue or ARR outlook to establish whether growth is accelerating or merely continuing. The net read is therefore broadly in line: recurring growth and margins are healthy, but the quarter did not clear the market’s revenue hurdle.
Capital returns were substantial but largely already visible in the year’s results. Guidewire repurchased 4.1 million shares for $606.3 million during FY26, leaving $31.9 million authorized. The buyback supported per-share results, but it does not change the mixed operating signal from this release.
Read the original 8-K on SEC EDGAR ↗