Guidewire Software, Inc. (GWRE): one to watch?

Interesting but not a screaming bargain — a beat-and-raise-turned-guide-down on slowing growth, not a broken business, yet still pricey.

👀 WATCH Fundamentals57/100

Fell 21% in 6 trading day(s) — now $162.42

Why GWRE dropped

Guidewire beat Q4 FY2026 earnings and revenue estimates, but the stock cratered because fiscal 2027 guidance implies growth decelerating meaningfully (ARR growth slowing to ~18% from ~19-20%, revenue growth slowing from the low-20s% to roughly 16%), disappointing investors who had priced in continued acceleration.

Fwd P/E 30.4Op margin 15.2%Rev growth 15.3%Debt/equity 58.9%Analyst upside 31.3%

How this scored 57/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 9.4%

✅ Generates cash Free cash flow $331M

✅ Not drowning in debt Debt/equity 58.9% (limit 200%)

✅ Can pay its bills Current ratio 1.8 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 11/25

Operating margin 15.2% 5/9

Net profit margin 9.4% 4/8

Return on equity 10.5% 2/8

Growth Is it getting bigger, or dying? 14/25

Revenue growth 15.3% 6/9

Earnings growth -36.7% 0/8

Expected profit change 185.5% 8/8

Value Is it cheap right now? 13/25

Forward P/E 30.4 3/10

PEG ratio 0.9 7/8

Analyst target upside 31.3% 4/7

Balance sheet Will it survive? 19/25

Debt / equity 58.9% 8/10

Current ratio 1.8 4/8

Free cash flow $331M 7/7

🔒 Read the full AI analysis

Create a free account to unlock the bull case and the risks for GWRE — plus today's other picks.

Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-07. Research only — not financial advice.