Shares in insurance industry software maker Guidewire popped Wednesday while Asana plunged. Software stocks generally turned in mixed financial results for the March-April earnings period.
Guidewire reported fiscal third-quarter adjusted earnings of 88 cents per share, up 238% from a year earlier, while revenue climbed 22% to $293.5 million.
Guidewire raised its fiscal-year revenue outlook to about $1.18 billion to $1.19 billion, up from its prior forecast of about $1.16 billion to $1.17 billion.
"The company added a quarterly record of 17 cloud deals with strong ongoing momentum across tier-1 and tier-2 (insurance) carriers and international markets," said William Blair analyst Dylan Becker in a report. "On the margin front, subscription and support gross margins of 71% and operating margin of 16% continue to highlight the business model inflection."
Guidewire Stock Outperforms in 2025
Asana reported fiscal first-quarter earnings per share of 5 cents, swinging to a profit from a 6-cent loss a year earlier. Revenue rose 9% to $187.3 million.
But guidance underwhelmed. The company forecast Q2 revenue of $193 million at the midpoint of guidance, just above estimates of $192 million. Asana also lowered its fiscal full-year guidance slightly.
On the stock market today, Guidewire stock surged more than 18% to 258.79. Asana stock plunged more than 16% to 15.82.
Most Guidewire customers are in the property and casualty insurance field. Guidewire's software handles insurance processing — underwriting, billings, claims management and risk management.
"Given the strong quarter with robust cloud execution, raised guidance, and improving profitability, we continue to believe that Guidewire warrants a premium multiple given its leadership in P&C core systems and path toward meaningful cash flow generation," said RBC Capital analyst Rishi Jaluria in a report.
Asana's work management platform helps users orchestrate work, from daily tasks to cross-functional strategic initiatives. Smartsheet is a competitor.
With Wednesday's gain, Guidewire stock has advanced 54% in 2025. Asana stock has retreated 21%.
Meanwhile, the iShares Expanded Tech Software exchange traded fund — composed of many of the major enterprise software players — is up 5% in 2025.
"Q1 earnings saw the degree of revenue upside moderate," said TD Cowen analyst Derrick Wood in a report. " We think macro (economic) volatility and government spending uncertainty remain key governors on (software stock) growth outlooks."
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity, quantum computing and cloud computing.
