Guidewire Software

GWRE

Software - Application · Technology

Also trades as: 0J1G.L

Price

$189.19

+7.40 (+4.07%)

Market Cap

$15.75B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Apr 30, 2026

How the score breaks down

Quality

Mixed

Growth

Exceptional

Cash Flow

Exceptional

Stability

Strong

Valuation

Good

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Share count rising — dilution

+2.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 83.6M (2021) → 85.9M (2025)

Winston Score History

The full picture

Guidewire Software makes software specifically for property and casualty (P&C) insurance companies. Its core products help insurers manage policies, process claims, and handle billing — basically the back-office systems that keep an insurance company running. Guidewire serves hundreds of P&C insurers around the world, from large national carriers to regional companies, and is one of the leading software platforms in this niche.

Guidewire earns most of its revenue through subscriptions, as it has been shifting customers from older on-premise software licenses to its cloud-based platform called Guidewire Cloud. The company operates globally, with customers across North America, Europe, and Asia-Pacific, and generates roughly $1 billion in annual revenue. Its main competitive advantage is how deeply its software gets embedded into a customer's operations, making it costly and disruptive to switch. The key growth driver is continued migration of existing customers to the cloud, though slowing insurance industry IT budgets or a prolonged migration timeline could weigh on results.

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1 Congressional buy and 4 sells on GWRE in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+26.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-65.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$296M/ year

↑ Rising (+10% vs prior year)

24.6% of revenue

1.6x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

9.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

5+ years

Quarterly Free Cash Flow

→ Burn rate stable

$1.1B cash & investments at current burn rate

Revenue accelerating

Guidewire Software grew revenue 27% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

63.5%

Premium pricing power — 63.5% gross margin

Profit after running costs

Operating Margin

8.2%

Modest — 8.2% operating margin

Return on the money invested

ROCE

5.9%

Weak — 5.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+24.9%

Fast-growing sales (+24.9% YoY)

Profit growth

EPS YoY

+361.0%

Earnings growing fast (+361.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

171%

Turns 171% of profit into real cash

Spare cash per sale

FCF Margin

17.9%

Converts sales into free cash efficiently (17.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.51

Conservative — low debt load (0.51)

Covers its interest

Interest Cover

8.87x

Comfortably covers interest (8.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

100.1x

Expensive — P/E 100.1

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+55.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (100.1 → 44.2)

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Dividends

Not applicable for this business.

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