Guidewire Software, Inc. (NYSE:GWRE) shares are trading higher Wednesday after the company reported better-than-expected third-quarter earnings on Tuesday after the market closed.

What To Know: Guidewire reported adjusted earnings per share of 88 cents, beating the consensus estimate of 47 cents. In addition, the company posted sales of $293.51 million, beating the consensus estimate of $286.39 million, and representing a 22% year-over-year growth.

Guidewire broke down sales further, reporting subscription and support revenue was $181.8 million, up 32% year-over-year, license revenue was $57.2 million, an increase of 2% year-over-year, and services revenue was $54.5 million, representing a 17% year-over-year rise.

The company posted annual reoccurring revenue of $960 million.

“We delivered exceptional third-quarter results, highlighted by record Q3sales activity and 17 cloud deals,” said Mike Rosenbaum, CEO, Guidewire.

“With Guidewire established as the clear worldwide leader in P&C core systems, we’re increasing our market engagement activity, hosting our largest ever industry events in Paris, Tokyo, and Sydney, and our second annual Developer Summit in Bangalore, where we activated the industry’s largest developer ecosystem.”

Outlook: Guidewire sees fourth-quarter sales between $332 million and $340 million, versus the consensus estimate of $299.63 million.

The company now sees fiscal-year 2025 sales from $1.18 billion to $1.19 billion, versus the consensus estimate of $1.17 billion. Guidewire previously anticipated sales from $1.16 billion to $1.17 billion.

Analyst Changes: Following the earnings report, multiple analysts announced price target adjustments.

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GWRE Price Action: At the time of writing, Guidewire stock is trading 15.6% higher at $252.05, according to data from Benzinga Pro.

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