DA Davidson keeps USD 222.00 target for Guidewire Software stock

Published on 10/06/2026 at 16:38 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Guidewire posted USD 1.48 billion revenue in fiscal 2026, up 23 percent. Guidewire Software stock gets a Buy rating as ARR targets USD 1.45-1.46 billion.

GWRE, US40171V1008, Illustration mit AI erstellt.

Guidewire Software (ISIN US40171V1008) posted USD 1.48 billion in revenue for fiscal 2026, up 23 percent from fiscal 2025, according to Simply Wall St on October 5, 2026. On October 2, 2026, Investing.com reported that DA Davidson maintained a Buy rating and a USD 222.00 price target.

DA Davidson keeps its USD 222 target

DA Davidson linked its view to a major new customer relationship that is expected to become one of Guidewire's 10 largest customers by fully ramped annual recurring revenue. The deployment may take 12 to 18 months, so the relationship is not expected to materially affect fiscal 2027 guidance, according to Investing.com.

The same report points to October 27, 2026, when Guidewire is scheduled to hold an Investor Day during its user conference in Las Vegas. That date gives the market a defined checkpoint for further detail on the customer relationship and the fiscal 2027 growth path.

Cloud ARR rises faster than revenue

Guidewire exited fiscal 2026 with ARR of USD 1.24 billion, an increase of 19 percent year over year, while total cloud ARR advanced 35 percent and represented 84 percent of overall ARR, according to The Globe and Mail on September 22, 2026.

Subscription revenue increased 37 percent to USD 916 million in fiscal 2026. Guidewire expects fiscal 2027 ARR of USD 1.45 billion to USD 1.46 billion, implying 18 percent constant-currency growth at the midpoint, while more than half of projected net new ARR was already under contract, The Globe and Mail reported.

Market value reaches USD 13.7 billion

Guidewire was trading at USD 164.91 on the NYSE at 10:36 a.m. ET on October 6, 2026. Its market capitalization stood at USD 13.7 billion on the same date, putting the analyst target and the company's recurring-revenue expansion at the center of the current valuation debate.