SAN MATEO, Calif. – reported second quarter results that exceeded analyst expectations, driving shares up 7% as the company raised its full-year outlook on strong demand for its cloud-based insurance software.
The company posted adjusted earnings per share of $1.17 for the second quarter of fiscal 2026, beating the analyst consensus of $0.77 by $0.40. Revenue reached $359.1 million, up 24% YoY from $289.5 million in the same quarter last year, and surpassing the consensus estimate of $342.76 million. Annual recurring revenue grew 22% YoY to $1,121 million as of January 31, 2026.
“We delivered another outstanding quarter highlighted by consistent execution, strong growth, and durable demand for large, multi-year deals,” said Mike Rosenbaum, chief executive officer. “Our momentum continues to build as AI drives core system modernization activity, product development velocity, and customer and partner engagement.”
Subscription and support revenue climbed 33% to $237.2 million, while services revenue increased 30% to $62.4 million. License revenue declined 7% to $59.5 million compared to the prior year period.
For the third quarter, Guidewire expects revenue between $352 million and $358 million, with a midpoint of $355 million above the analyst consensus of $339.9 million. The company raised its fiscal 2026 revenue guidance to $1.438 billion to $1.448 billion, though the midpoint of $1.443 billion falls below the consensus estimate of $1.634 billion.
“We are raising our fiscal year outlook across the board and this is informed by our better than expected Q2 results and the continued strength of our pipeline,” said Jeff Cooper, chief financial officer.
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