Guidewire Software's Backlog Supports Durable Growth, Oppenheimer Says

11:26 AM EDT, 10/20/2026 (MT Newswires) -- Guidewire Software's (GWRE) backlog supports durable growth, but moderating contributions from older cohorts and steeper ramps in recent cohorts could create fiscal 2027 noise before more robust outer-year contributions, Oppenheimer said in a Tuesday research report. The company sees maintenance and regulatory complexity limiting de-compiler risk, while a recent major deal was already factored into guidance and is expected to contribute little annual recurring revenue initially, analysts wrote. The company believes maintenance, operations, and regulatory upkeep are roadblocks for insurers decompiling or rebuilding core systems internally to save 20 basis points to 30 bps of direct written premiums, according to the note. The brokerage said it expects the company to address progress toward fiscal 2028 targets following outperformance instead of a formal refresh or the introduction of fiscal 2029 targets. Oppenheimer said it reiterated its outperform rating on the stock and price target of $210 per share. Price: 181.10, Change: +9.66, Percent Change: +5.63