Guidewire Software Inc (GWRE)
Gross profit margin
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 752,053 | 706,678 | 666,207 | 629,461 | 583,361 | 560,603 | 517,294 | 498,351 | 458,211 | 410,389 | 395,395 | 374,123 | 370,365 | 383,824 | 371,803 | 357,772 | 368,213 | 394,761 | 405,271 | 406,973 |
| Revenue (ttm) | US$ in thousands | 1,202,459 | 1,137,404 | 1,084,574 | 1,035,991 | 980,497 | 958,940 | 925,752 | 917,466 | 905,341 | 879,982 | 869,940 | 841,962 | 812,614 | 797,450 | 763,970 | 739,399 | 743,267 | 757,506 | 761,703 | 755,099 |
| Gross profit margin | 62.54% | 62.13% | 61.43% | 60.76% | 59.50% | 58.46% | 55.88% | 54.32% | 50.61% | 46.64% | 45.45% | 44.43% | 45.58% | 48.13% | 48.67% | 48.39% | 49.54% | 52.11% | 53.21% | 53.90% |
July 31, 2025 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $752,053K ÷ $1,202,459K
= 62.54%
The gross profit margin of Guidewire Software Inc. has exhibited notable fluctuations over the analyzed period, reflecting evolving operational efficiencies and market dynamics. Starting at approximately 53.90% as of October 31, 2020, the margin experienced a gradual decline, reaching a low of around 44.43% by October 31, 2022. This downward trend suggests periods of increased cost of goods sold relative to revenue, or shifts in product mix or pricing strategies.
Subsequently, the gross profit margin demonstrated a consistent upward trajectory beginning in late 2022 and continuing into 2025. Notably, the margin increased from 45.45% as of January 31, 2023, to reach approximately 60.76% by October 31, 2024. This significant improvement indicates enhanced profitability, potentially attributable to cost control measures, pricing power, product mix optimizations, or operational efficiencies gained over time.
The overall trend from the start of the period to the end shows an initial decline followed by a sustained recovery and growth, culminating in a gross profit margin exceeding 60%. This pattern suggests that the company successfully managed to improve its gross profitability in recent periods, which could be indicative of strategic shifts towards higher-margin offerings or better management of production costs.