Guidewire Software posted total revenue of $1.475 billion for its fiscal year ended July 31, up 23% year on year. The number itself is not the story. What matters is what is driving it: P&C insurers are committing to cloud and AI at a scale that will change how they underwrite, price, and operate.
The San Mateo, California-based company provides the core policy, billing, and claims software that more than 570 insurers in 44 countries run on. Subscription and support revenue, the cloud platform business, grew 33% to $970.9 million in fiscal 2026. Annual recurring revenue reached $1.242 billion, up 19% on a constant currency basis. Those figures reflect carriers making long-term commitments to a platform embedded in their most fundamental operating functions.
License revenue declined 7% for the full year, but that is by design - carriers are migrating from perpetual licenses to cloud subscriptions, rather than stepping back from the platform.
"Customers are deepening their commitments to Guidewire's core offerings and expanding with new pricing and AI focused products," said Mike Rosenbaum, Guidewire's chief executive officer. "AI is driving our momentum, as more of our insurance customers choose to align their AI transformation with Guidewire."
Guidewire launched Qusar in August, adding an Agentic Framework - tools that let insurers deploy AI agents directly within their core systems. The release included a claims summarization agent for adjusters and a policy change agent for underwriters and service teams. It also added an AI-powered first notice of loss tool that captures claim details through conversational voice without manual data entry. The goal is to remove administrative work from underwriting and claims so those functions can handle greater volume with faster cycle times.
Independent evidence points to why carriers are moving in this direction. A 2026 P&C Insurance Advanced Analytics and AI Survey by WTW found that carriers using more advanced analytics achieved combined ratios six percentage points lower and premium growth three percentage points higher than slower adopters between 2022 and 2024. Guidewire's subscription growth is one measure of how many carriers are now building toward that kind of operating advantage.
The connection to brokers runs through how carriers will process submissions, assess risk, and resolve claims as these systems take hold. Faster quote turnaround and claims resolution improve the client experience brokers are accountable for. Carriers that can triage submissions more precisely may also become more selective. Risks that arrive poorly packaged into an automated intake process may be declined faster than before.
There is also a placement dynamic at work. Guidewire's own London Market research, published in February, found that 78% of London Market brokers said insurer technology plays a decisive or highly significant role in where they place risk. That figure applies to London specifically, but the pattern it describes is not unique to London. Brokers routing business toward carriers whose technology makes placement more efficient is a competitive reality wherever multiple carriers compete for the same risk.
These results are a vendor's earnings report and should be read as such. They are also a window into where the P&C industry's technology investment is concentrated, at a scale that points to carrier commitment rather than experimentation. Brokers do not need to understand the platform to feel its effects. Those effects will arrive through how the carriers they work with respond to submissions, price risks, and handle claims in the years ahead.
"Strong execution in fiscal year 2026 was visible in record sales activity and in the lowest ARR gross attrition rate since we started measuring ARR," said Jeff Cooper, Guidewire's chief financial officer. The lowest attrition rate in the company's history means insurers are not merely buying into the platform. They are staying and expanding within it.
