CWAN Stock Forecast & Price Target

Clearwater Analytics Holdings has demonstrated strong financial performance, with a total revenue of $126.5 million representing a 28% year-over-year increase, surpassing consensus estimates by 5.1%. The company achieved impressive non-GAAP gross margins of 78.8%, increasing both sequentially and year-over-year, which supports expectations for future margin expansion. Furthermore, the recent acquisitions have diversified Clearwater's service offerings, positioning the firm for continued growth within the expanding markets it serves.

Clearwater Analytics Holdings faces significant headwinds, including unexpected interest rate increases and risks associated with its recent acquisitions, such as Enfusion, which may strain integration and disrupt performance in a volatile hedge fund environment. The company is anticipated to experience decelerating revenue growth through CY26, along with challenges in maintaining competitive margins against larger incumbents and emerging start-ups in the vertical software market. Additionally, Clearwater's multi-class share structure raises corporate governance concerns, while market, regulatory, and international risks further complicate its financial outlook, particularly as 10% of its revenue comes from international operations.