Guidewire repurchased 4.1M shares for $606.3M in fiscal 2026
Software company executed $606.3M in buybacks during fiscal year ended July 31, 2026, with $31.9M remaining under authorization.
What the filing says
Guidewire Software announced the execution of a $606.3 million share repurchase program during its fiscal year ended July 31, 2026. The company repurchased 4,085,350 shares of common stock at an average price of $148.41 per share. As of the fiscal year-end date, $31.9 million remained available for future purchases under the program.
The buyback was executed during a period of strong financial performance for the insurance software provider. The company reported fiscal 2026 total revenue of $1,475.4 million (up 23% year-over-year) and generated $389.7 million in operating cash flow. The repurchase reflects management confidence in the company's cash generation and valuation. The buyback reduced diluted weighted average shares outstanding from 85.9 million in fiscal 2025 to 85.4 million in fiscal 2026.
The filing does not specify whether the buyback was executed through Rule 10b-18 open-market purchases, an Accelerated Share Repurchase agreement, or another mechanism. The execution mechanism and the original authorization details are not disclosed in this earnings release.
Guidewire repurchased 4,085,350 shares of common stock at an average price of $148.41 during the fiscal year ended July 31, 2026, for an aggregate purchase price of $606.3 million. As of July 31, 2026, $31.9 million remained available for purchases under the share repurchase program. — Guidewire Software, Inc. 8-K filing · View on SEC EDGAR →
What this means
Guidewire's $606.3 million buyback reduced its share count by approximately 4.1 million shares (4.6% of shares outstanding at the end of fiscal 2025) and represents a significant capital allocation to shareholders. The $31.9 million remaining authorization is approximately 2% of the amount just executed, suggesting the program is nearly fully deployed. With $1.2 billion in liquidity and strong operating cash flow generation, the company appears positioned to support both growth investments and shareholder returns. The buyback contributed to a modest decline in diluted share count despite the company issuing shares through employee equity compensation programs.
Frequently asked questions
- How many shares did Guidewire repurchase, and at what price?
- Guidewire repurchased 4,085,350 shares during fiscal year 2026 (ended July 31, 2026) at an average price of $148.41 per share, totaling $606.3 million in aggregate repurchase value. This reduced the company's diluted weighted average shares outstanding from 85.9 million in fiscal 2025 to 85.4 million in fiscal 2026.
- How much authorization remains under Guidewire's buyback program?
- As of July 31, 2026, $31.9 million remained available for future share repurchases, representing approximately 2% of the $606.3 million just deployed. The filing does not disclose the original total authorization amount or the date it was approved.
- Why did Guidewire repurchase shares during fiscal 2026?
- The filing does not explicitly state management's rationale for the buyback. However, the company achieved strong results in fiscal 2026—including 23% total revenue growth, 19% ARR growth, and $389.7 million in operating cash flow—suggesting the repurchase reflects confidence in valuation and cash generation. The company also maintained substantial liquidity of $1.2 billion.
- What was the average price Guidewire paid per share, and how does it compare to the stock price at filing?
- Guidewire paid an average of $148.41 per share during fiscal 2026. The filing was published on September 3, 2026, but does not disclose the stock price on that date, so a direct comparison to contemporaneous market pricing is not available from this document.
- How does Guidewire's buyback activity compare to its cash flow generation?
- Guidewire's $606.3 million in buybacks represented 155% of the $389.7 million in operating cash flow generated during fiscal 2026, indicating the company funded buybacks partially from its cash and investment balances. The company's cash, cash equivalents, and investments declined from $1.48 billion to $1.22 billion year-over-year.
- What does this buyback mean for future shareholder dilution?
- The buyback offset dilution from employee stock compensation programs, enabling Guidewire to modestly reduce its diluted share count year-over-year despite ongoing equity-based compensation. With only $31.9 million remaining under authorization, future dilution management may depend on the approval and execution of a new buyback program.