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Guidewire Software (GWRE) Q3 FY26 earnings results (third quarter fiscal 2026)

10-Q filed Jun 5, 2026

Guidewire Software (GWRE) reported revenue of $373M for the third quarter fiscal 2026 (Q3 FY26), +27% from a year earlier and +4% from the quarter before. Operating margin was 8.2%, net earnings $16.5M (4.4% of revenue).

Revenue$373M
Year over year+27%
Quarter over quarter+4%
Operating margin8.2%
Net earnings$16.5M

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 follows the revenue to costs, profit and cash.

Q3 FY26AmountQ/QY/Y
Revenue$373M+4%+27%
Gross profit$237M+2%+30%
Operating profit$30.6M-20%+586%
Net earnings$16.5M-73%-64%
Operating cash flow$61.2M-45%+89%
Free cash flow$59.4M-45%+88%

What changed

Revenue was $372.5M in Q3 FY26, up 27% year over year and up 4% from the previous quarter. Subscription was the largest line at 62% of revenue. Subscription added $65.7M year over year (up 39%), 83% of the total change. Support declined 18%.

Gross margin was 63.5%, up 1.3 points from Q3 FY25. Operating profit was $30.6M, a 8.2% margin (up 6.7 points year over year). Of the extra revenue versus Q3 FY25, 33% reached operating profit, above the 2% margin then. Operating expenses grew 16% against revenue growth of 27%. The fastest-growing cost line was Research & development (+21%). Net earnings were $16.5M, down 64% year over year. The effective tax rate was 16.6%.

Operating cash flow was $61.2M (up 89% year over year), 371% of net earnings. Non-cash charges added back $7.2M of depreciation and amortization and $44.9M of share-based compensation. Working capital and other items used $7.5M. Capital expenditures of $1.8M left free cash flow of $59.4M.

Questions

What was Guidewire Software's revenue in the third quarter fiscal 2026?

Guidewire Software (GWRE) reported revenue of $373M for the third quarter fiscal 2026 (Q3 FY26), +27% from a year earlier and +4% from the quarter before.

Was Guidewire Software profitable in the third quarter fiscal 2026?

Operating profit was $30.6M (8.2% of revenue) and net earnings $16.5M.

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Source: Guidewire Software 10-Q on SEC EDGAR.