
Guidewire Software (GWRE) Stock Forecast & Price Target
Guidewire Software (GWRE) Analyst Ratings
Bulls say
Guidewire Software is projecting a total revenue increase to $1.164B-$1.174B for FY25, reflecting a 19% year-over-year growth at the midpoint, driven primarily by a robust 42.9% growth in subscription revenue and a 25.6% rise in services revenue. The company's most recent quarterly revenue of $289.5M also exceeded consensus forecasts, marking a 20% year-over-year increase, which instills confidence in its growth trajectory. Furthermore, the annual recurring revenue (ARR) has been solid, finishing at $918.1M—up 15% year-over-year—while expected ARR for FY25 indicates a further growth target of $1.000B-$1.010B, reinforcing a sustained positive outlook for the company’s financial health.
Bears say
The financial outlook for Guidewire Software is negatively impacted by a decline in license revenue and stagnation in subscription revenue growth, particularly as competitors increase their market presence. Additionally, external factors such as economic downturns or pressures in the insurance underwriting cycle may constrict spending by property and casualty insurance carriers, directly affecting Guidewire’s revenue streams. The transition from term licensing to subscription pricing, coupled with the reliance on Systems Integrators for maintenance, poses risks of client churn, potentially further destabilizing future revenue.
This aggregate rating is based on analysts' research of Guidewire Software and is not a guaranteed prediction by Public.com or investment advice.
Guidewire Software (GWRE) Analyst Forecast & Price Prediction
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