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Open Text ( (TSE:OTEX) ) has issued an update.
On February 5, 2026, OpenText reported second-quarter fiscal 2026 results for the period ended December 31, 2025, with total revenue essentially flat at $1.33 billion, down 0.6% year-on-year, but cloud revenue rising 3.4% to $478 million, marking 20 consecutive quarters of organic cloud growth. Annual recurring revenue edged up 0.7% to $1.06 billion, while adjusted EBITDA reached $491 million for a robust 37.0% margin, and GAAP net income was $168 million, contributing to GAAP diluted EPS of $0.66 and non-GAAP EPS of $1.13; operating cash flow came in at $319 million and free cash flow at $279 million, enabling $119 million of capital returned to shareholders through dividends and buybacks. The board declared a cash dividend of $0.275 per common share payable March 20, 2026, underscoring its capital-return stance, while management highlighted strong enterprise cloud bookings growth of 18%, a leadership transition to new CEO Ayman Antoun, and ongoing portfolio simplification via the completed eDOCS sale and planned Vertica divestiture as part of a push to build a leaner, higher-margin, AI- and cloud-focused business.
The most recent analyst rating on (TSE:OTEX) stock is a Hold with a C$33.00 price target. To see the full list of analyst forecasts on Open Text stock, see the TSE:OTEX Stock Forecast page.
Spark’s Take on TSE:OTEX Stock
According to Spark, TipRanks’ AI Analyst, TSE:OTEX is a Outperform.
Score is driven primarily by solid financial performance (strong margins and cash-flow growth) and supportive valuation (low P/E with a high dividend yield). This is tempered by clear technical weakness (price below major moving averages and negative MACD), while the latest earnings call was moderately positive on cloud momentum and margin expansion despite mix-transition and cybersecurity-cloud risks.
To see Spark’s full report on TSE:OTEX stock, click here.
More about Open Text
OpenText Corporation is a Canadian enterprise software company focused on Enterprise Information Management (EIM) and cloud-based information management solutions, increasingly positioning its offerings around AI-driven products such as its Aviator AI suite. The company targets large enterprises seeking secure, compliant management of content and data, and is pursuing a strategy of cloud modernization, divesting non-core assets like eDOCS and Vertica to concentrate on core EIM-for-AI capabilities under new CEO Ayman Antoun.
Average Trading Volume: 978,148
Technical Sentiment Signal: Sell
Current Market Cap: C$8.09B
See more insights into OTEX stock on TipRanks’ Stock Analysis page.