Zacks Investment Research
Guidewire's Cash Flow and Buybacks: Can Both Keep Scaling?
Guidewire Software (GWRE) reported a 30% year-over-year increase in operating cash flow to $390 million for fiscal 2026, driven by improved profitability and operating leverage. The company repurchased $606 million in shares and projects fiscal 2027 operating cash flow of $445-$465 million. However, GWRE's forward P/S multiple of 6.86X exceeds the Internet Software industry average of 4.43X, and the stock gained only 18% over three months versus the industry's 26.2% growth.
