Open Text Corporation Earnings Recaps
Q4 2026
Aug 9, 2026
Open Text’s shares declined 2.8% following earnings, reflecting investor caution despite modest top-line growth, as concerns linger around margin pressure and a cautious outlook. The market appears unimpressed by the company’s incremental execution steps amid a transition year.
Key takeaways
- Revenue grew 1% year-over-year in constant currency, with core portfolio up 3% and cloud revenue within core increasing 9%.
- Adjusted EBITDA margin stood at 37.1%, suggesting some margin pressure despite growth efforts.
- CEO emphasized a foundational fiscal 2027 focused on prioritization and disciplined execution rather than near-term acceleration.
- Management is investing significantly in sales capacity (+300 new quota-carrying roles) and ecosystem partnerships to enhance go-to-market efforts.
- An ongoing enterprise-wide assessment aims to guide future growth, but no material upside was apparent in current results or near-term guidance.
Q2 2026
Feb 6, 2026
OpenText's Q2 fiscal 2026 results surpassed expectations, highlighted by a strong cloud growth trajectory and a strategic divestiture that positions the company for focused future growth.
Key takeaways
- Total revenues reached approximately $1.33 billion, with cloud revenue growing 3.4% year over year.
- Enterprise cloud bookings increased 18%, totaling $295 million, reflecting robust demand for core offerings.
- The recently announced divestiture of Vertica for $150 million is aimed at sharpening focus on OpenText's primary growth areas.
- Core content business, accounting for 43% of total revenues, grew 4.5% year over year with cloud content revenues up 18%.
- The company reaffirms its FY 2026 revenue growth target of 1% to 2% year over year, indicating confidence in ongoing strategic initiatives.