On June 5, Guidewire Software declined 12.02% overnight, trading at $133.0/share, with trading volume of $18,100.

On the news front, the company released its fiscal Q3 earnings after market close, reporting adjusted EPS of $0.82, beating the consensus estimate of $0.74. Revenue came in at $372.5 million, surpassing the $355.9 million expected and representing a 27% year-over-year increase. Annual recurring revenue grew 19% to $1.147 billion. The company also raised full-year revenue guidance to $1.46–$1.47 billion from a prior range of $1.44–$1.45 billion, above the FactSet consensus of $1.45 billion.

Despite the double beat, the stock fell sharply as the full-year guidance failed to satisfy elevated expectations built into the stock price. Notably, shares had surged over 22% in the week preceding the earnings release, amplifying profit-taking pressure. The sell-off reflects a classic buy-the-rumor, sell-the-news dynamic where prior gains had already priced in strong results.

Guidewire Software is a core platform provider for the property and casualty insurance industry, with products spanning the full insurance lifecycle including underwriting, billing, and claims management.

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