Open Text Corporation ( (OTEX) ) has released its Q1 earnings. Here is a breakdown of the information Open Text Corporation presented to its investors.
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Open Text Corporation is a leading cloud and AI company that specializes in providing comprehensive Business AI, Business Clouds, and Business Technology solutions to organizations globally, focusing on information management. In its latest earnings report for the first quarter of fiscal year 2026, OpenText announced total revenues of $1.29 billion, marking a 1.5% year-over-year increase, and highlighted its 19 consecutive quarters of cloud organic growth.
The company’s financial performance was robust, with a net income margin of 11% and an adjusted EBITDA margin of 36.3%. GAAP earnings per share (EPS) stood at $0.58, while non-GAAP EPS was $1.05. OpenText’s cloud revenues reached $485 million, reflecting a 6% year-over-year growth, and the company reported significant increases in net income and free cash flows, up by 73.8% and 186.4% year-over-year, respectively.
Strategically, OpenText is advancing its position in the Information Management for AI sector. The company announced a definitive agreement to divest its on-premise solution, eDOCS, as part of its portfolio-shaping strategy. Additionally, OpenText continues to enhance shareholder value through strategic investments and operational efficiencies driven by its Business Optimization Plan.
Looking ahead, OpenText remains committed to leading the Information Management for AI market, with plans to showcase its innovation roadmap at the upcoming OpenText World User Conference. The company’s management expresses confidence in its ability to drive growth and operational efficiencies, ensuring a strong position in the evolving market landscape.