Filing Flows › Guidewire Software (GWRE) › Q2 FY26
Guidewire Software (GWRE) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Mar 6, 2026
Guidewire Software (GWRE) reported revenue of $359M for the second quarter fiscal 2026 (Q2 FY26), +24% from a year earlier and +8% from the quarter before. Operating margin was 10.7%, net earnings $60.1M (16.7% of revenue).
Guidewire Software, Q2 FY26: revenue $359M (+24% year over year), operating margin 10.7%, net earnings $60.1M, operating cash flow $112M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $359M | +8% | +24% |
| Gross profit | $232M | +10% | +29% |
| Operating profit | $38.4M | +108% | +228% |
| Net earnings | $60.1M | +92% | — |
| Operating cash flow | $112M | — | +30% |
| Free cash flow | $109M | — | +28% |
What changed
Revenue was $359.1M in Q2 FY26, up 24% year over year and up 8% from the previous quarter. Subscription was the largest line at 62% of revenue. Subscription added $61.1M year over year (up 38%), 88% of the total change. Support declined 10%.
Gross margin was 64.5%, up 2.6 points from Q2 FY25. Operating profit was $38.4M, a 10.7% margin (up 6.7 points year over year). Of the extra revenue versus Q2 FY25, 38% reached operating profit, above the 4% margin then. Operating expenses grew 15% against revenue growth of 24%. The fastest-growing cost line was Research & development (+19%). Net earnings were $60.1M. The effective tax rate was 19.4%. Non-operating items added $36.1M, 48% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $112.0M (up 30% year over year), 186% of net earnings. Non-cash charges added back $7.0M of depreciation and amortization and $46.8M of share-based compensation. Capital expenditures of $3.3M left free cash flow of $108.8M.
Questions
What was Guidewire Software's revenue in the second quarter fiscal 2026?
Guidewire Software (GWRE) reported revenue of $359M for the second quarter fiscal 2026 (Q2 FY26), +24% from a year earlier and +8% from the quarter before.
Was Guidewire Software profitable in the second quarter fiscal 2026?
Operating profit was $38.4M (10.7% of revenue) and net earnings $60.1M.
Source: Guidewire Software 10-Q on SEC EDGAR.