Guidewire Software Inc (GWRE)
Gross profit margin
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 752,053 | 583,361 | 458,211 | 377,176 | 389,560 |
| Revenue | US$ in thousands | 1,202,460 | 980,497 | 905,341 | 812,614 | 743,267 |
| Gross profit margin | 62.54% | 59.50% | 50.61% | 46.42% | 52.41% |
July 31, 2025 calculation
Gross profit margin = Gross profit ÷ Revenue
= $752,053K ÷ $1,202,460K
= 62.54%
The gross profit margin of Guidewire Software Inc. has exhibited notable fluctuations over the observed period from July 31, 2021, to July 31, 2025. Starting at 52.41% in 2021, it decreased to 46.42% by 2022, indicating a decline in the percentage of revenue remaining after deducting the cost of goods sold. This downturn may suggest increased costs or pricing pressures impacting gross profitability during that year.
Following this dip, the gross profit margin demonstrated a recovery trend, rising to 50.61% in 2023. The subsequent years saw a continued upward trajectory as the margin expanded significantly to 59.50% in 2024 and further to 62.54% in 2025. This increase signifies an improvement in gross profitability margins, which could be attributable to factors such as improved operational efficiencies, successful pricing strategies, or a favorable shift in product mix.
Overall, the progression from a peak of 52.41% in 2021 to a low of 46.42% in 2022, followed by a sustained and substantial increase to over 62% in 2025, reflects a period of volatility followed by robust recovery and growth in gross profit margin. This pattern underscores a potential strengthening in core profitability metrics for Guidewire Software Inc. in the latter years.