Filing Flows › Guidewire Software (GWRE) › Q3 FY26 › vs Q2 FY26
Guidewire Software (GWRE) Q3 FY26 vs Q2 FY26 (quarter over quarter)
Guidewire Software's revenue rose $13.4M (+4%) from $359M in Q2 FY26 to $373M in Q3 FY26. The biggest changes: Services +$9.4M (+15%); Subscription and support +$7.5M (+3%); License −$3.5M (-6%). Gross margin 63.5% against 64.5% (-1.0 pts).
Guidewire Software, Q3 FY26: revenue $373M (+27% year over year), operating margin 8.2%, net earnings $16.5M, operating cash flow $61.2M. The chart draws each line against Q2 FY26, the increases inside each band.
Margins
| Q3 FY26 | Q2 FY26 | Change | |
|---|---|---|---|
| Gross margin | 63.5% | 64.5% | -1.0 pts |
| Operating margin | 8.2% | 10.7% | -2.5 pts |
| Net margin | 4.4% | 16.7% | -12.3 pts |
| Free cash flow margin | 15.9% | 30.3% | -14.3 pts |
Every line
| Line | Q3 FY26 | Q2 FY26 | Change | % |
|---|---|---|---|---|
| Subscription | $232M | $223M | $9.4M | +4% |
| Support | $12.6M | $14.5M | −$1.9M | -13% |
| Subscription and support | $245M | $237M | $7.5M | +3% |
| Services | $71.8M | $62.4M | $9.4M | +15% |
| License | $56.0M | $59.5M | −$3.5M | -6% |
| Revenue | $373M | $359M | $13.4M | +4% |
| Gross profit | $237M | $232M | $5.1M | +2% |
| Cost of revenue | $136M | $128M | $8.3M | +7% |
| Operating profit | $30.6M | $38.4M | −$7.8M | -20% |
| Operating expenses | $206M | $193M | $12.9M | +7% |
| Pre-tax earnings | $19.8M | $74.6M | −$54.8M | -73% |
| Other expense, net | $10.9M | −$36.1M | $47.0M | — |
| Research & development | $87.9M | $83.3M | $4.5M | +5% |
| Sales & marketing | $68.2M | $61.5M | $6.7M | +11% |
| General & admin | $49.9M | $48.3M | $1.7M | +3% |
| Net earnings | $16.5M | $60.1M | −$43.6M | -73% |
| Income tax | $3.3M | $14.4M | −$11.2M | -77% |
| Depreciation & amortization | $7.2M | $7.0M | $190K | +3% |
| Share-based compensation | $44.9M | $46.8M | −$1.8M | -4% |
| Working capital & other | $7.5M | $1.9M | $5.6M | +301% |
| Operating cash flow | $61.2M | $112M | −$50.9M | -45% |
| Free cash flow (OCF − capex) | $59.4M | $109M | −$49.4M | -45% |
| Capital expenditures | $1.8M | $3.3M | −$1.5M | -46% |
Questions
How much did Guidewire Software's revenue grow quarter over quarter in Q3 FY26?
Guidewire Software's revenue rose $13.4M (+4%) from $359M in Q2 FY26 to $373M in Q3 FY26.
What drove Guidewire Software's revenue change in Q3 FY26?
Services +$9.4M (+15%); Subscription and support +$7.5M (+3%); License −$3.5M (-6%).