Question · Q4 2025
Alex Hughes asked about the building blocks for the FY2026 ARR outlook, specifically if the 50-50 mix of ramp versus net new ARR is still a good rule of thumb, how it looked in FY2025, and any changes in assumptions for Guidewire pricing or churn.
Answer
CFO Jeff Cooper noted that ARR growth is now slightly more weighted towards backlog, providing better visibility. He modeled more conservatism for true-up activity and assumed attrition rates more aligned with historical averages, following a record low year. He also mentioned consistent efforts to improve discounting and the platform's maturity aiding commercial conversations.