📈 Price History

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About

Open Text Corporation provides data management solutions for enterprise AI in North, Central and South America, Europe, the Middle East, Africa, Australia, Japan, Singapore, India, and China.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q4 2025

Confident Specific

Management repeatedly framed fiscal 2026 as a 'completely different year' led by growth, provided explicit numeric guidance (total revenue +1-2%, cloud +3-4%, new cloud bookings +12-16%), and introduced new cloud segment disclosures. CEO openly acknowledged disappointment with FY2025 negative growth but stressed forward momentum and improved visibility from RPO.

Q1 2026

Confident Specific

Management repeatedly stated Q1 results exceeded expectations across all key metrics (revenue, ARR, EBITDA margin, EPS). They provided detailed numerical breakdowns (e.g., Content Cloud 21% YoY growth, cloud CRPO +6%) and reaffirmed full-year guidance. Language such as 'above street expectations' and 'great start' underscores their assurance.

Q2 2026

Confident Specific

Management repeatedly stated they beat internal expectations on revenue, EBITDA margin, and EPS ('solid performance beating our own expectations'), and highlighted specific growth metrics (content cloud up 18%, enterprise cloud bookings up 18%). Tom Jenkins also emphasized 'we are very fortunate' regarding AI positioning and 'we're doing what we said we would do.' The tone was assured and data-driven.

Q3 2026 latest

Confident Specific

Management used strong language like 'excited', 'confident', 'solid performance', 'increasing our cloud revenue growth range' and provided specific numbers for cloud growth, EPS, and free cash flow. At the same time, they were cautious on divestitures, citing macro uncertainty and refusing to do 'fire sales'.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears stronger after this call, primarily due to accelerating cloud growth in the Content Cloud (22% YoY) and raised guidance for cloud revenue and FCF. New CEO Ayman Antoun's early emphasis on listening, disciplined execution, and client focus is reassuring, but his strategic plan is still pending. The key risk remains the uncertain divestiture timeline and macro headwinds, particularly in the U.S. government vertical. Next quarter, investors should watch for progress on the CEO's organic growth plan, further details on AI monetization attach rates, and any improvement in cybersecurity/ITOM growth. Overall, the core cloud narrative is positive, but non-core divestitures and margin sustainability need continued monitoring.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED OpenText reports Q3 FY2026 revenue $1.28B, cloud growth 6.6%, content cloud up 22%.

Revenue & Profitability

Total revenues were $1.28 billion in Q3 FY2026. Cloud revenue rose 6.6% year-over-year to $493 million. GAAP net income was $173 million (up 86%), and non-GAAP net income was $250 million (up 15.9%). Adjusted EBITDA was $438 million (34.1% margin, up 260 bps). Free cash flow was $305 million (down 18.4% QoQ), but year-to-date free cash flow reached a record $686 million, up from $563 million in the prior year.

Outlook

Management sees strong demand for cloud and AI, with clients accelerating migrations to prepare data for AI. They maintained FY2026 revenue growth guidance of 1%-2% (adjusted for $30M divestiture impact) and raised cloud revenue growth to 4%-5% and enterprise cloud bookings growth to 16%-20%. Free cash flow growth outlook was increased to 22%-25%. Headwinds include geopolitical uncertainty, US government shutdown lingering effects, and a selective buyer environment for M&A.

Growth Drivers

Key growth drivers are the Content Cloud business (cloud revenue up 22% YoY), enterprise cloud bookings (Q3 saw 41 deals >$1 million, up 28% YoY), and AI-related deals (e.g., a seven-figure Aviator deal). Geographically, Europe delivered double-digit growth, while the Americas faced lingering government slowdown. Product wins include Michelin (business network), Hargassner (content), HPE Aruba (cybersecurity), and Aydem Energy (ITOM).

Balance Sheet & CapEx

Not discussed in this earnings call.

Margins

Adjusted EBITDA margin improved 260 bps year-over-year to 34.1%, driven by cost management and the business optimization plan. GAAP gross margin was 73.1% (up 150 bps) and non-GAAP gross margin was 76.7% (up 100 bps), supported by higher cloud, support, and license margins. The company expects to realize approximately one-third of total estimated savings of $490-$550 million from the optimization plan in fiscal 2026.

Key Risks

Management highlighted geopolitical and macroeconomic uncertainty, which has created a selective buyer environment for divestitures and prompted cautious capital allocation. The US government shutdown had a lingering impact on bookings in the Americas. Foreign exchange headwinds are noted, with core revenue on a constant currency basis expected to be flat to slightly down. Analysts inquired about potential macro spending slowdown, but management reported no material change in client decision-making.

Generated by AI · Q3 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q4 2026 Q4 2026 2026-08-06

Q4 and FY2026 saw steady revenue and margin growth, driven by strong cloud and core portfolio performance, with significant debt reduction and disciplined capital allocation. FY2027 guidance projects continued core and cloud growth, supported by major investments in sales and partner capacity.

Q3 2026 Q3 2026 2026-05-07

Q3 saw record cloud revenue and adjusted EPS, with strong growth in content and cloud bookings. FY 2026 guidance was raised for cloud revenue, bookings, and free cash flow, while the company continues disciplined capital allocation and portfolio reshaping amid macro uncertainty.

Q2 2026 Q2 2026 2026-02-05

Q2 saw revenue of $1.33B, led by 18% growth in enterprise cloud bookings and strong content cloud performance. Portfolio reshaping continued with Vertica and eDOCS divestitures, while FY26 guidance for 1%-2% revenue growth was reaffirmed.

Q1 2026 Q1 2026 2025-11-06

Q1 FY26 saw revenue of $1.3B (+1.5% YoY) and cloud revenue up 6%, led by 21% Content Cloud growth. Adjusted EBITDA margin rose to 36.3%, and the company is accelerating its pivot to core content and cloud, with divestitures of non-core units ongoing.

Q4 2025 Q4 2025 2025-08-08

Fiscal 2025 saw strong cloud bookings, margin expansion, and record capital returns, despite overall revenue decline. Fiscal 2026 guidance targets 1%-2% revenue growth, 3%-4% cloud growth, and 17%-20% free cash flow growth, with continued investment in AI, security, and cloud innovation.

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