Earnings To Watch: Guidewire Software (GWRE) Reports Q4 Results Tomorrow

Insurance software provider Guidewire Software (NYSE:GWRE) will be reporting earnings this Thursday after market close. Here’s what you need to know.

Guidewire Software beat analysts’ revenue expectations last quarter, reporting revenues of $332.6 million, up 26.5% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.

This quarter, the market is expecting Guidewire Software’s revenue to grow 18.4% year on year, slowing from the 20.2% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Guidewire Software rarely misses Wall Street’s revenue estimates.

Looking at Guidewire Software’s peers in the vertical software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Bentley Systems delivered year-on-year revenue growth of 11.9%, beating analysts’ expectations by 2.7%, and Alarm.com reported revenues up 8%, topping estimates by 4.3%. Bentley Systems traded up 12.5% following the results while Alarm.com’s stock price was unchanged.

The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the vertical software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.9% on average over the last month. Guidewire Software is up 9.1% during the same time and is heading into earnings with an average analyst price target of $249.64 (compared to the current share price of $151.57).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares.