Filing Flows › Guidewire Software (GWRE) › Q3 FY26 › vs Q3 FY25
Guidewire Software (GWRE) Q3 FY26 vs Q3 FY25 (year over year)
Guidewire Software's revenue rose $79.0M (+27%) from $294M in Q3 FY25 to $373M in Q3 FY26. The biggest changes: Subscription and support +$62.9M (+35%); Services +$17.4M (+32%); License −$1.2M (-2%). Gross margin 63.5% against 62.2% (+1.3 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 Q3 FY25, the increases inside each band.
Margins
| Q3 FY26 | Q3 FY25 | Change | |
|---|---|---|---|
| Gross margin | 63.5% | 62.2% | +1.3 pts |
| Operating margin | 8.2% | 1.5% | +6.7 pts |
| Net margin | 4.4% | 15.7% | -11.2 pts |
| Free cash flow margin | 15.9% | 10.8% | +5.2 pts |
Every line
| Line | Q3 FY26 | Q3 FY25 | Change | % |
|---|---|---|---|---|
| Subscription | $232M | $166M | $65.7M | +39% |
| Support | $12.6M | $15.4M | −$2.8M | -18% |
| Subscription and support | $245M | $182M | $62.9M | +35% |
| Services | $71.8M | $54.5M | $17.4M | +32% |
| License | $56.0M | $57.2M | −$1.2M | -2% |
| Revenue | $373M | $294M | $79.0M | +27% |
| Gross profit | $237M | $183M | $53.9M | +30% |
| Cost of revenue | $136M | $111M | $25.1M | +23% |
| Operating profit | $30.6M | $4.5M | $26.2M | +586% |
| Operating expenses | $206M | $178M | $27.8M | +16% |
| Pre-tax earnings | $19.8M | $48.7M | −$28.9M | -59% |
| Other expense, net | $10.9M | −$44.2M | $55.1M | — |
| Research & development | $87.9M | $72.9M | $15.0M | +21% |
| Sales & marketing | $68.2M | $57.8M | $10.4M | +18% |
| General & admin | $49.9M | $47.5M | $2.4M | +5% |
| Net earnings | $16.5M | $46.0M | −$29.5M | -64% |
| Income tax | $3.3M | $2.7M | $612K | +23% |
| Depreciation & amortization | $7.2M | $6.0M | $1.3M | +21% |
| Share-based compensation | $44.9M | $40.4M | $4.6M | +11% |
| Working capital & other | $7.5M | $60.0M | −$52.5M | -88% |
| Operating cash flow | $61.2M | $32.4M | $28.8M | +89% |
| Free cash flow (OCF − capex) | $59.4M | $31.6M | $27.8M | +88% |
| Capital expenditures | $1.8M | $703K | $1.1M | +152% |
Questions
How much did Guidewire Software's revenue grow year over year in Q3 FY26?
Guidewire Software's revenue rose $79.0M (+27%) from $294M in Q3 FY25 to $373M in Q3 FY26.
What drove Guidewire Software's revenue change in Q3 FY26?
Subscription and support +$62.9M (+35%); Services +$17.4M (+32%); License −$1.2M (-2%).