📊 AI Stock Rating — Summary

Guidewire Software (GWRE) reported quarterly revenue of approximately $332.6 million and a net income of $31.3 million, resulting in an EPS of $0.37 for the period ending October 31, 2025. The free cash flow was negative at $72.3 million, indicating some cash flow challenges. Year-over-year growth remains moderate. On the balance sheet, total assets were reported at $2.64 billion against liabilities of $1.11 billion, sustaining a healthy equity position at $1.53 billion and a manageable net debt of $212.5 million. GWRE's cash flow from operations was negative, but liquidity seems adequate with $493.2 million in cash. The company has not engaged in dividends or share buybacks. Analyst price targets as of the valuation date suggest a possible stock valuation between $246 and $300, indicating potential upside. The absence of dividends and buybacks suggests a strategy focused on reinvestment for growth rather than immediate shareholder returns. Overall, GWRE's stable balance sheet and modest profitability signal resilience, but challenges remain in improving cash flow and unwavering revenue growth.

AI Score Breakdown

Revenue Growth — Score: 5/10

Revenue growth is stable but unremarkable at $332.6 million for the quarter. The company's growth appears moderate without significant acceleration or deceleration, relying largely on its software solutions to drive sales.

Profitability — Score: 6/10

With a net income of $31.3 million and EPS of $0.37, profitability is modest. Margins show room for improvement, and consistency in earnings should be a focus.

Cash Flow Quality — Score: 4/10

Negative free cash flow of $72.3 million highlights some challenges in cash generation. No dividends or buybacks have been executed, but liquidity remains sufficient with $493.2 million in cash holdings.

Leverage & Balance Sheet — Score: 7/10

The balance sheet is robust with equity of $1.53 billion against net debt of $212.5 million. Financial health is supported by significant asset backing and manageable liabilities.

Shareholder Returns — Score: 5/10

GWRE has not distributed dividends or repurchased shares. With no given data on price performance, presumed neutral shareholder value creation at this snapshot.

Analyst Sentiment & Valuation — Score: 7/10

Analyst targets up to $300 suggest a positive future valuation. Current metrics indicate a potential for upside growth, contingent on future performance alignment with forecasts.

⚠ AI-generated — informational only, not financial advice.