OTEX
Open Text Corporation33.25
-0.12-0.36%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q2 '26
Q&A affirms divestitures, AI moat
Q&A doubled down on portfolio reshape confidence, with Jenkins affirming one divestiture per quarter at strong DCF valuations from eager financial buyers. Management dismissed AI disruption fears, stressing OpenText feeds curated content into agentic AI rather than building apps. Enterprise cloud bookings held at 18% YoY growth amid strong pipeline, though cybersecurity showed lumpiness from tough comps—expecting core segments like Business Network and ITOM to turn positive in Q4. Customers remain embryonic in AI adoption, focused on content prep for pilots. AI remains embryonic. Outlook stayed upbeat on cloud migrations to hyperscalers; investors will eye divestiture pace and AI traction.
Key Stats
Market Cap
8.49BP/E (TTM)
17.41Basic EPS (TTM)
1.91Dividend Yield
0.03%Recent Filings
8-K
Boosts buyback to US$500M
OpenText boosted its Fiscal 2026 share repurchase program by US$200 million to a US$500 million cap on February 10, 2026, signaling confidence in its cash flow engine. The NCIB, running August 12, 2025 to August 11, 2026, caps buys at 24,906,456 shares; repurchases hit US$190 million by January 31. Buybacks anchor capital strategy. Forward-looking plans carry execution risks.
8-K
Q2 revenues dip; cloud grows
Open Text posted Q2 revenues of $1.33B, down 0.6% Y/Y, yet cloud revenues rose 3.4% to $478M with 20 straight quarters of organic growth. Divested eDOCS for $163M, announced Vertica sale for $150M to streamline; named Ayman Antoun CEO effective April 20, 2026. Declared $0.275/share dividend. Cloud bookings surged 18%. Portfolio sharpens on AI.
10-Q
Q2 FY2026 results
OpenText's Q2 revenues dipped 0.6% y/y to $1.33B (derived), yet cloud services grew 3.4% y/y to $478M while recurring revenues held at 80% of total. Gross margin expanded to 74.0% from 73.3%, but operating income slipped 1.4% y/y to $292M (derived) on higher sales spend; diluted EPS fell to $0.66 from $0.87, reconciling to 254M shares. Operating cash flow for H1 soared 73% y/y to $466M, yielding $381M FCF after $86M capex, with cash at $1.27B versus $6.37B debt (3.35x net leverage). eDOCS divestiture closed Jan 2026 for $163M cash, prepaid on term loan. Competition pressures legacy products.
8-K
Sells Vertica for $150M cash
Open Text agreed to sell its non-core Vertica analytics unit to Rocket Software for US$150 million in cash on February 2, 2026, shedding a business that generated US$80 million in revenue last fiscal year. The divestiture sharpens focus on core cloud products for enterprise AI while proceeds cut debt. Deal closes in fiscal 2026, pending approvals. Risks hinge on regulatory nods.
8-K
Antoun named OpenText CEO
OpenText named Ayman Antoun CEO and board member, effective April 20, 2026, after a thorough search. The IBM Americas veteran, with 35 years' experience, brings cloud and AI expertise while interim CEO James McGourlay shifts to the leadership team. New deal offers CAD$1.2M base, 135% target bonus, and $11M in equity grants. Leadership stabilized.
IPO
Website
Employees
Sector
Industry
ADBE
Adobe Inc.
347.89-3.26
APPN
Appian Corporation
36.43-0.47
INLX
Intellinetics, Inc.
8.25+0.00
NOW
ServiceNow, Inc.
781.12+15.92
OCFT
OneConnect Financial Technology
7.89+0.00
ORCL
Oracle Corporation
188.65+3.73
ORKT
Orangekloud Technology Inc.
0.84-0.04
VRNT
Verint Systems Inc.
20.51+0.00
VTEX
VTEX
3.82+0.05
XTRAF
XTRACT ONE TECHNOLOGIES INC.
0.46-0.02