On September 4, Guidewire fell 18.03% in regular trading, trading around $163.00 per share, with turnover of approximately $30.25 million. The sharp decline was triggered by disappointing first-quarter revenue guidance despite a strong fourth-quarter earnings beat.

Guidewire reported fiscal Q4 revenue of $411.1 million, up 15.3% year-over-year, exceeding the consensus estimate of $402.6 million. Adjusted EPS came in at $0.99, beating the Street estimate of $0.93 by roughly 6%. However, the company issued fiscal Q1 revenue guidance of $372 million to $378 million, significantly below analysts' expectation of $387.1 million, becoming the primary catalyst for the selloff. Full-year FY2027 revenue guidance of $1.707 billion to $1.727 billion came in slightly above the $1.70 billion consensus but failed to offset near-term concerns. Notably, a similar pattern occurred following the Q3 earnings release, when strong results were overshadowed by cautious forward guidance, sending shares down over 14% after hours.

Meanwhile, Citigroup raised its price target to $181 from $137 while maintaining a Neutral rating. The average analyst target stands at $201.08 with a consensus Buy rating.

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