Guidewire Software's Fiscal 2027 Outlook Disappoints After Strong Fiscal Q4, RBC Says

12:05 PM EDT, 09/04/2026 (MT Newswires) -- Guidewire Software's (GWRE) fiscal 2027 outlook disappointed amid elevated expectations after its strong fiscal Q4 results, RBC Capital Markets said in a Friday note. The company reported fiscal Q4 non-GAAP diluted earnings of $0.99 per diluted share, up from $0.81 a year earlier, as revenue rose to $411.1 million from $356.6 million. Guidewire said it expects revenue of $372 million to $378 million in fiscal Q1 and $1.71 billion to $1.73 billion in fiscal 2027. The fiscal Q1 outlook was below the Street view and while the fiscal 2027 guidance was slightly above consensus. RBC said the company's full-year projections did not reflect upside from its 22% fully ramped annual recurring revenue trajectory. Guidewire management attributed the soft outlook to normalizing attrition from record-low levels in fiscal 2026 and lower conversion of backlog into annual recurring revenue, according to the note. RBC has an outperform rating on Guidewire Software with a $215 price target. Price: 160.63, Change: -42.23, Percent Change: -20.82