
Guidewire Software (GWRE) Stock Forecast & Price Target
Guidewire Software (GWRE) Analyst Ratings
Bulls say
Guidewire Software has provided a positive financial outlook, projecting total revenue for FY25 to be in the range of $1.164 billion to $1.174 billion, representing a year-over-year increase of 19% at the midpoint, supported by strong subscription revenue growth of 42.9%. The company's reported total revenue of $289.5 million for the current quarter, which is a 20% increase year-over-year, exceeded both consensus estimates and the company's own projections. Additionally, the Annual Recurring Revenue (ARR) reached $918.1 million, a 15% increase year-over-year, with expectations for ARR to surpass $1 billion, indicating solid performance and growth potential in the subscription segment.
Bears say
Guidewire Software's outlook is negatively impacted by a continued decline in license revenue and stagnant subscription revenue growth, exacerbated by potential market share losses to competitors like Duck Creek and SPNS. The possibility of an economic downturn or unfavorable shifts in the insurance underwriting cycle may lead to reduced spending on technology by property and casualty insurers, further straining the company's sales. Additionally, while operating and free cash flows surpassed consensus estimates, concerns about client disruption due to the transition to subscription pricing and reliance on Systems Integrators for support could heighten churn rates among existing customers.
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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