Dolby vs Guidewire Software
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KIRA’s take AI analyst
I put Dolby and Guidewire Software side by side, using each one’s latest annual report. Here is what stands out:
- Guidewire Software is the larger business, with $1.5B of revenue in fiscal 2026 against $1.3B for Dolby.
- Guidewire Software grew revenue faster (22.7%, against 5.9%).
- Dolby kept more of each dollar of sales as operating profit (19.6% operating margin, against 10.2%).
- Dolby turned more of its sales into free cash flow (32.3% FCF margin, against 25.6%).
- Guidewire Software earned a higher return on the capital invested in it (12.1%, against 11.4%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Dolby
DLB
5/11
Gross marginOperating marginNet marginFCF marginNet debt / EBITDA
Guidewire Software
GWRE
6/11
Revenue growth5-year growthReturn on capitalReturn on equityPiotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | DLB FY25 | GWRE FY26 |
|---|---|---|
| Size | ||
| Market cap | $5.9B | $16.1B |
| Revenue | $1.3B | $1.5B |
| Free cash flow | $436M | $378M |
| Net income | $255M | $139M |
| Growth | ||
| Revenue growth | 5.9% | 22.7% |
| 5-year growth | 3.0% | 14.7% |
| Share count change | 0.2% | −0.6% |
| Profitability | ||
| Gross margin | 88.1% | 64.2% |
| Operating margin | 19.6% | 10.2% |
| Net margin | 18.9% | 9.4% |
| FCF margin | 32.3% | 25.6% |
| Return on capital | 11.4% | 12.1% |
| Return on equity | 10.0% | 10.5% |
| Balance sheet | ||
| Net debt | −$703M | −$75.0M |
| Net debt / EBITDA | −2.0x | −0.4x |
| Dividends and buybacks | $252M | $606M |
| Valuation & quality | ||
| P/E | 26.7x | — |
| Piotroski F-score | 5 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.