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Guidewire SoftwareMEX:GWRE 76 Gross Margin % is 63.52% as of Apr. 2026, which is 16% above its 10-year median of 54.73. GuruFocus rates MEX:GWRE with a GF Score™ of 76/100 and a GF Value™ of MXN2,718.35 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,685 Software companies, Guidewire Software ranks better than 73.97% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Guidewire Software had a gross margin of 63.52% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Guidewire Software Gross Margin % Related Terms
Guidewire Software Gross Margin % Historical Data
* Premium members only.
The historical data trend for Guidewire Software's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:GWRE vs FIG, FROG, HUBS: Gross Margin % Comparison
For the Software - Application subindustry, Guidewire Software's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Guidewire Software Gross Margin % vs Software Industry
For the Software industry and Technology sector, Guidewire Software's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Guidewire Software's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Guidewire Software (MEX:GWRE) has a Gross Margin % of 63.52% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Guidewire Software and its competitors. This is 16% above median its historical median of 54.73. Over the past decade, Guidewire Software's Gross Margin % has ranged from 46.42 to 64.23. According to the industry distribution chart, Guidewire Software ranks #699 out of 2685 companies in the Software industry, placing it in the top 26%.
Is Guidewire Software's Gross Margin % too high?
Guidewire Software's current Gross Margin % of 63.52% is 16% above median its 10-year median of 54.73. Over the past 10 years, this metric has ranged from a low of 46.42 to a high of 64.23. The Software industry median Gross Margin % is 40.49. Guidewire Software's value of 63.52% is 56.9% above this industry median. Based on the distribution chart, Guidewire Software ranks #699 out of 2685 companies in the Software industry, which is above the industry midpoint. Overall, Guidewire Software has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guidewire Software's Gross Margin % compare to FIG and FROG?
According to the Software industry distribution chart, Guidewire Software ranks #699 out of 2685 companies for Gross Margin %. This puts Guidewire Software in the upper half of its industry. The industry median Gross Margin % is 40.49. Guidewire Software's value of 63.52% is 56.9% above this benchmark. Historically, Guidewire Software's own Gross Margin % has ranged from 46.42 to 64.23 over the past decade. While the company's 10-year median is 54.73 vs. the industry median of 40.49, Guidewire Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.49, based on 2,685 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Guidewire Software's current Gross Margin % of 63.52% is 56.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Guidewire Software and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guidewire Software's current Gross Margin % is 63.52%, which is 16% above median its own 10-year median of 54.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guidewire Software stock overvalued right now?
Based on GuruFocus' analysis, Guidewire Software (MEX:GWRE) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN2,718.35, compared to a current price of MXN1,865.00 — trading 31.4% below its estimated fair value. The current Gross Margin % is 63.52%, which is 16% above median its 10-year median of 54.73 and 56.9% above the Software industry median of 40.49. Guidewire Software's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Guidewire Software (MEX:GWRE), the current Gross Margin % is 63.52% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Guidewire Software (MEX:GWRE) Overvalued in 2026?
Based on GuruFocus' analysis, Guidewire Software stock appears to be undervalued.
The current stock price of MXN1,865.00 is trading 31.4% below its estimated GF Value™ of MXN2,718.35.
GuruFocus considers Guidewire Software to be Significantly Undervalued.
Key valuation signals for MEX:GWRE:
Gross Margin %: 63.52% (16% above median its 10-year median of 54.73)
GF Value™: MXN2,718.35 vs. price of MXN1,865.00 (31.4% below fair value)
Industry Position: 56.9% above the Software median (#699 of 2685)
No single metric tells the full story. See the MEX:GWRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guidewire Software provides cloud-based software solutions for property and casualty insurers. The flagship product, InsuranceSuite is a system of record and comprises ClaimCenter, a claims management system; PolicyCenter, a policy management system including policy definitions, quotas, issuance, maintenance, and renewal; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a midmarket offering, as well as a variety of other add-on applications and services.
76GF Score
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