Will Clearwater Analytics (CWAN) Overcome Integration Hurdles as M&A Ambitions Grow?

• Earlier in August 2025, Artisan Partners announced it had returned Clearwater Analytics Holdings (CWAN) to its “Garden from the Crop” portfolio after Clearwater expanded the size and scope of its M&A strategy.
• This shift has drawn focus to Clearwater’s challenge of integrating larger acquisitions, as it has yet to prove its capabilities in that area since becoming a public company.
• We’ll examine how Clearwater’s bolder M&A plans may impact its growth outlook, operational risks, and future narrative for investors.

Find companies with promising cash flow potential yet trading below their fair value.

Clearwater Analytics Holdings Investment Narrative Recap

For Clearwater Analytics Holdings, the investment case hinges on belief in the company’s ability to deliver consistent revenue growth through international expansion and cross-sell of its SaaS platform, while successfully integrating larger acquisitions. The move by Artisan Partners to return Clearwater to its “Garden from the Crop” portfolio puts renewed attention on integration risk, which remains the most important near-term challenge; for now, this news does not fundamentally shift the revenue growth catalyst, but it reinforces the operational uncertainty.

Among the recent company announcements, the appointment of two independent board members with international and platform expertise on August 5, 2025, directly supports Clearwater’s ambitions for global expansion and larger-scale M&A, and aligns with short-term focus areas for mitigating integration and execution risks. This board refresh brings added oversight and experience as Clearwater pursues a more complex growth trajectory.

However, in contrast to optimism around strategic ambitions, investors should be aware of the ongoing integration challenges with recent acquisitions such as Enfusion and Beacon…

Read the full narrative on Clearwater Analytics Holdings (it's free!)

Clearwater Analytics Holdings is projected to generate $1.2 billion in revenue and $106.6 million in earnings by 2028. This implies a 30.4% annual revenue growth rate but a $299.8 million decrease in earnings from the current $406.4 million.

Uncover how Clearwater Analytics Holdings' forecasts yield a $30.55 fair value, a 47% upside to its current price.

Exploring Other Perspectives

Seven private investors in the Simply Wall St Community estimate Clearwater's fair value from US$12.73 to US$35.63 per share. While revenue is forecast to grow above 20 percent yearly, integration risk around recent and future acquisitions could impact future performance, so consider the range of opinions as you shape your own view.

Explore 7 other fair value estimates on Clearwater Analytics Holdings - why the stock might be worth 39% less than the current price!

Build Your Own Clearwater Analytics Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Clearwater Analytics Holdings research is our analysis highlighting 5 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Clearwater Analytics Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Clearwater Analytics Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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