Open Text Corp. (TSE:OTEX)
TSX:OTEX
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Earnings Data
Report Date
Jul 30, 2026After Close (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
1.43Last Year’s EPS
1.33Same Quarter Last Year
Based on 9 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed predominantly positive momentum driven by strong cloud and content performance, record cloud revenue and bookings, margin expansion, improved EPS, and raised cloud/bookings/free cash flow outlooks. Key challenges noted include a Q3 free cash flow dip, declines in professional services and modest support revenue pressure, some segment/regional softness (notably U.S. government-related delays), and timing/uncertainty around non-core asset divestitures. Management emphasized disciplined execution, AI/data platform positioning, and capital allocation prudence.Company Guidance
Total Revenue and Record Cloud Quarter
Total revenues of ~$1.28B in Q3 FY26; cloud revenue reached $493M, up 6.6% year-over-year and the highest quarterly cloud revenue in company history. Q3 marks the 21st consecutive quarter of organic cloud growth.
Content Business Strength
Content business (44% of total revenue) grew 6% year-over-year in Q3; Content cloud grew 22% year-over-year and is a primary driver of overall cloud momentum.
Core Cloud and Bookings Momentum
Q3 core cloud business up 12% year-over-year. Year-to-date enterprise cloud bookings $651M (highest Q3 YTD in company history). 41 cloud deals >$1M in Q3, up 28% year-over-year.
Profitability and Margin Expansion
Adjusted EBITDA of $438M (34.1% margin), up 10.8% year-over-year and +260bps margin expansion. GAAP gross margin 73.1% (+150bps YoY) and non-GAAP gross margin 76.7% (+100bps YoY).
Earnings and Net Income Improvement
Q3 non-GAAP diluted EPS $1.01, up 23.2% year-over-year and highest Q3 non-GAAP EPS in company history. GAAP diluted EPS $0.70, up 100% YoY. GAAP net income $173M, up 86% YoY; non-GAAP net income $250M, up 15.9% YoY.
ARR and Recurring Revenue Mix
ARR of $1.06B, up 2.7% year-over-year and representing 82% of total revenue, reinforcing a recurring revenue base.
Improved Guidance and Upside to Cloud Targets
Full-year FY26 revenue target unchanged (1%-2% growth after ~$30M divestiture impact), but cloud revenue growth outlook raised from 3%-4% to 4%-5% and enterprise cloud bookings growth raised from 12%-16% to 16%-20%. Free cash flow growth outlook increased to 22%-25% (from 17%-20%).
Cash Flow and Capital Returns
YTD free cash flow of $686M (highest Q3 YTD in company history), up from $563M last year (~+21.9% YTD). Share buyback program increased from $300M to $500M; repurchased and cancelled 9.7M shares in Q3, reducing share count by 6.7% YoY to 242.2M shares.
Product and Market Positioning for AI
Data & AI platform shipping this quarter with >1,500 connectors and support for major LLMs; select solutions available on AWS Sovereign Cloud (EU) to address regulated data residency, positioning OpenText for AI and regulated-cloud demand.
TSE:OTEX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TSE:OTEX Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | C$32.35 | C$33.81 | +4.51% |
Feb 05, 2026 | C$30.89 | C$33.90 | +9.74% |
Nov 05, 2025 | C$52.63 | C$49.85 | -5.28% |
Aug 07, 2025 | C$37.62 | C$41.38 | +10.01% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Open Text Corp. (TSE:OTEX) report earnings?
Open Text Corp. (TSE:OTEX) is schdueled to report earning on Jul 30, 2026, After Close (Confirmed).
What is Open Text Corp. (TSE:OTEX) earnings time?
Open Text Corp. (TSE:OTEX) earnings time is at Jul 30, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TSE:OTEX EPS forecast?
TSE:OTEX EPS forecast for the fiscal quarter 2026 (Q4) is 1.43.
