Shares of Guidewire Software, Inc. (GWRE) were losing around 14 percent in the overnight trading after the company reported lower profit for the third quarter, mainly attributable to a foreign currency loss, compared to prior year's gains. However, adjusted net income increased with higher revenues. Further, the firm issued fourth- quarter outlook and raised fiscal 2026 forecast.
In the third quarter, net income for the period went down to $16.47 million from $46 million in the same quarter a year ago. Net income per share dropped to $0.19 from $0.54 in the prior year.
The significant decrease in the income reflected the foreign currency loss of $20.1 million, compared to the profit of $34.2 million in the previous year due to fluctuating foreign exchange rates.
Adjusted net income, on the other hand, rose to $69.65 million from $47.41 million last year. Adjusted net income per share went up to $0.82 from $0.55 in 2025.
Total revenue for the third quarter increased to $372.54 million from $293.51 million in the previous year.
Looking ahead for the fourth quarter, the company expects operating income between $36 million and $46 million, adjusted operating income between $86 million and $96 million, on total revenue of $396 million to $406 million.
Further, for fiscal 2026, the company now expects operating income to be in the range of $124 million and $134 million, higher than previous range of $100 million and $110 million.
Adjusted operating income is now projected to be between $314 million and $324 million, up from $293 million and $303 million expected earlier.
The company raised total revenue outlook to a range of $1.460 billion and $1.470 billion from previous range of $1.438 billion and $1.448 billion.
In the overnight trading on the NYSE, the shares were down 14 percent at $129.99, after closing Thursday's regular trading 2.48 percent lower.
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