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Guidewire Software GWRE Services — Gross Profit

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Other financials

Income statement

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Revenue$372.5M+26.9%
Gross profit$236.6M+29.5%
Operating income$30.6M+586%
Net income$16.5M-64.2%
EPS (diluted)$0.19-64.8%

Balance sheet

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Cash & equivalents$294.6M-42.4%
Total debt$27.0M-18.1%
Total equity$1.3B-3.3%
Total assets$2.5B+1.9%

Cash flow

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Operating cash flow$61.2M+89.1%
CapEx$1.8M+152%
Free cash flow$59.4M+87.7%

Valuation

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Market cap$13.35B-29.7%
Enterprise value$13.08B-28.7%
P/E83.5×-189×
P/S9.4×-6.4×

Profitability

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Gross margin64%+1.9pp
Operating margin8.2%
Net margin11.2%
FCF margin23.7%+2.1pp

Returns & leverage

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Return on equity11.9%
Debt / equity0.0×
Current ratio2.4×-0.8×

Where this comes from

Reported directly by Guidewire Software in its filing.

Tagged under the XBRL concept us-gaap:GrossProfit.

The source filing: Guidewire Software’s 10-Q, filed June 5, 2026.

Filed
Jun 4, 2026, 8:00 PM EDT
Fiscal quarter
Q3 FY2026
Calendar quarter
Q2 2026
Accession
0001528396-26-000027
Line itemThree Months Ended / April 30, 2026Three Months Ended / April 30, 2025Nine Months Ended / April 30, 2026Nine Months Ended / April 30, 2025
Gross profit:
Subscription and support176,856124,412508,413358,872
License55,62256,341156,031155,582
Services4,1671,94513,2445,788
Total gross profit236,645182,698677,689520,242
Operating expenses:
Research and development87,86872,915249,510212,063
Sales and marketing68,20157,768193,934164,698

ITEM 1.Financial Statements (unaudited)

FAQ

What is Guidewire Software's services — gross profit?
Guidewire Software (GWRE) reported services — gross profit of $4.17M in Q1 2026.
How has Guidewire Software's services — gross profit changed year-over-year?
Guidewire Software's services — gross profit increased by 114.2% year-over-year, from $1.95M to $4.17M.
What is the long-term trend for Guidewire Software's services — gross profit?
Over 3 years (2021 to 2025), Guidewire Software's services — gross profit has grown at a 72.7% compound annual growth rate (CAGR), from $1.47M to $7.55M.
What does services — gross profit mean?
This metric is the difference between total services revenue and the direct costs associated with delivering those services. It measures the profitability of the services segment independent of general corporate overhead or R&D expenses. A positive gross profit indicates that the services organization is self-sustaining or profitable, whereas a negative value suggests the services are being provided at a loss to facilitate software adoption.

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