Guidewire's Q3 2025 Results Show Accelerating Momentum for Cloud-Based Insurance Platform
In its latest quarterly earnings call, Guidewire demonstrated impressive growth and momentum in the insurance technology sector. The company reported a record quarter for sales, with a significant number of cloud deals closed, including several high-end core system agreements with Tier 1 insurers.
Guidewire's Chief Executive Officer, Mike Rosenbaum, highlighted the strong sales activity, citing the third-best quarter in the company's history. A total of 17 cloud deals were closed, with 14 of them being for at least one of the company's InsuranceSuite applications and three for InsuranceNow.
The success was particularly pronounced at the high end of the market, where seven core system deals were signed with Tier 1 insurers and three with Tier 2 insurers. This achievement demonstrates the maturity and robustness of Guidewire's platform and validates its strategy to focus on the unique demands of this segment of the market.
As a result of this sales success, Guidewire's Annual Recurring Revenue (ARR) reached $960 million, allowing it to raise its full-year outlook. The company is now solidly on track to exceed $1 billion in ARR this year, a collective ambition established several years ago.
The growth was broad-based and multidimensional, with nine cloud migrations, five net new deals, and three expansions. Guidewire's success with InsuranceNow was also highlighted, with the closing of three net new wins, including two of the largest ever on this product.
Moreover, the company's international momentum continues to build, with a significant cloud expansion in Canada and cloud wins in APAC and EMEA. These results demonstrate Guidewire's ability to effectively serve insurers across all segments and tiers.
The deals closed in the quarter showed encouraging themes, with insurers seeking to replace rigid systems with more agile platforms that allow them to deploy new products and lines of business faster. Advanced product designer, along with pre-integrated solutions from Guidewire's marketplace, were key factors in winning multiple deals this quarter, including several large insurers in the United States and a notable win in Latin America.
