Guidewire Software, Inc. (NYSE:GWRE) shares are trading higher premarket on Friday after the company reported better-than-expected second-quarter results.

The company also issued third-quarter sales guidance above estimates and raised its fiscal 2026 sales outlook beyond analyst expectations.

Earnings Snapshot

Revenue rose 24% year over year (Y/Y) to $359.1 million, exceeding the consensus of $341.7 million.

By segment, subscription and support revenue rose 33% Y/Y to $237.2 million, and services revenue increased 30% Y/Y to $62.4 million; however, license revenue fell 7% Y/Y to $59.5 million.

As of January 31, 2026, annual recurring revenue (ARR) stood at $1.12 billion.

Adjusted operating income increased to $87.4 million from $53.9 million ...