Guidewire has compiled four quarters of substantial earnings outperformance and converts cash at nearly twice its reported net income, supporting a high-quality growth profile; however, a confirmed price downtrend with a hard technical block keeps the setup on hold until the trend heals, at which point analysts project 50% upside from current levels.
Thesis pillars
- Consistent Earnings Outperformance↑Improving
- Superior Free Cash Conversion→Stable
- Confirmed Downtrend Blocks Entry→Stable
- +1 more pillar — see the Why tab for full reasoning
Guidewire Software, Inc. (GWRE) Stock Analysis
Recovery setup · Catalyst-Driven edge
Technology · Software - Application
Sell if holding. Analyst target reached at $189.19 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Expensive valuation.
Guidewire Software provides a cloud-based core systems platform—InsuranceSuite, InsuranceNow, and analytics tools—for property and casualty insurers worldwide, hosted on AWS. Subscription revenue is priced on Direct Written Premium managed, with five-year initial contract terms;... Read more
Sell if holding. Analyst target reached at $189.19 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Expensive valuation. Chart setup: Death cross but MACD improving, RSI 76. Score 5.1/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-08-22Recent Developments — Guidewire Software, Inc.
Latest news
- NEWS Comerica Bank Acquires 26,912 Shares of Guidewire Software, Inc. $GWRE - MarketBeat — MarketBeat positive
- NEWS 3 Reasons We’re Fans of Guidewire Software (GWRE) - Yahoo Finance — Yahoo Finance positive
- NEWS Guidewire Software (GWRE) Pulls Back 2.98%: Navigating Key Support Levels - AAII Bearish - thelegaladvocate.com — thelegaladvocate.com negative
- NEWS Is Guidewire Software, Inc. (NYSE:GWRE) Potentially Undervalued? - Moomoo — Moomoo positive
- NEWS Guidewire Software (NYSE:GWRE) Stock Rating Lowered by Zacks Research - MarketBeat — MarketBeat negative
Generated 2026-08-23T00:58:06Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerten largest customers20%10-K Item 1A: 'Our ten largest customers accounted for 20% and 22% of our revenue in fiscal years 2025 and 2024, respectively'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $189.19 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Expensive valuation. Chart setup: Death cross but MACD improving, RSI 76. Prior stop was $175.95. Score 5.1/10, moderate confidence.
Take-profit target: $217.57 (-6.9% upside). Prior stop was $175.95. Stop-loss: $175.95.
Analyst target reached - limited upside remaining; Expensive valuation; Overbought (RSI 76).
Guidewire Software, Inc. trades at a P/E of 98.0 (forward 46.2). TrendMatrix value score: 3.3/10. Verdict: Sell.
21 analysts cover GWRE with a consensus score of 4.2/5. Average price target: $202.
What does Guidewire Software, Inc. do?Guidewire Software provides a cloud-based core systems platform—InsuranceSuite, InsuranceNow, and analytics tools—for...
Guidewire Software provides a cloud-based core systems platform—InsuranceSuite, InsuranceNow, and analytics tools—for property and casualty insurers worldwide, hosted on AWS. Subscription revenue is priced on Direct Written Premium managed, with five-year initial contract terms; the top ten customers represented 20% of fiscal 2025 revenue. The company had 3,772 employees at July 31, 2025, with 2,058 located internationally.