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Open Text Corp. (OTEX)
NASDAQ:OTEX
Earnings Data
Report Date
Apr 30, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.91Last Year’s EPS
0.83Same Quarter Last Year
Based on 8 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed constructive progress on OpenText's strategic pivot to a higher-growth content cloud and AI-focused company: cloud bookings, RPO, content cloud revenue, renewal rates, ARR and gross margins showed positive trends, portfolio reshaping is underway with divestitures and capital return actions, and year-to-date free cash flow improved materially. Offsetting these positives were notable GAAP earnings and EPS declines (driven by FX/derivatives), a modest decline in adjusted EBITDA and quarter free cash flow, softness in customer support and professional services, and the removal of revenue from divestitures that will require modeling adjustments. Management reaffirmed a conservative full-year revenue guide of 1%–2% growth while highlighting multi-quarter cloud momentum and product innovation (AI platform). Overall, the highlights modestly outweigh the lowlights given strong cloud bookings, content traction, margin improvement, cash generation YTD, and clear strategic actions.Company Guidance
Solid Total Revenue and Cloud Revenue
Q2 total revenues of approximately $1.33 billion; cloud revenue of $478 million, up 3.4% year-over-year.
Strong Enterprise Cloud Bookings and RPO
Enterprise cloud bookings of $295 million, up 18% year-over-year; total cloud RPO up 13.7% year-over-year; closed 53 cloud deals larger than $1 million.
Content Business Momentum
Content business (43% of total revenues) grew 4.5% year-over-year in Q2; content cloud revenue grew 18% year-over-year and is cited as the largest and fastest-growing business.
Recurring Revenue & Renewal Rates
ARR of $1.06 billion, up 0.7% year-over-year; ARR as a percentage of total revenues 80% (up 1 percentage point); cloud net renewal rate at 95% and customer support net renewal rate at 92%.
Gross Margin Expansion
GAAP gross margin improved to 74% (up ~70 basis points); non-GAAP gross margin improved to 77.6% (up ~40 basis points), driven by higher cloud and customer support gross margins.
Adjusted EBITDA and Non-GAAP EPS Stability
Adjusted EBITDA of $491 million representing a 37% margin (remains high despite a modest decline); non-GAAP diluted EPS of $1.13, up 1.8% year-over-year.
Improved Year-to-Date Cash Flow and Capital Actions
Free cash flow for the quarter was $279 million and year-to-date free cash flow was $381 million (up from $190 million prior year); active $300 million buyback program (about half repurchased YTD) and intent to increase buyback; using divestiture proceeds to reduce debt.
Portfolio Shaping and De-risking for Focus
Completed eDOCS divestiture (closed in January) and announced sale of Vertica for ~$150 million; company executing a planned cadence of divesting non-core assets to focus on core content & AI businesses.
AI Product Roadmap and Customer Wins
Introduced OpenText AI Data Platform (shipping next quarter) with ~1,500 connectors and LLM support; customer success stories and wins in the quarter (U.S. Bank migration, Salinas ECM with SAP, BNP Paribas cybersecurity) and positive feedback from OpenText World (IBM, Honda, United Airlines testimonials).
Operational Savings Plan Progress
Business optimization plan on track; expect to realize approximately one-third of total estimated savings of $490 million–$550 million this fiscal year.
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
OTEX Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 05, 2026 | $22.79 | $25.07 | +10.00% |
Nov 05, 2025 | $37.71 | $35.69 | -5.36% |
Aug 07, 2025 | $27.68 | $30.41 | +9.84% |
Apr 30, 2025 | $26.41 | $25.19 | -4.62% |
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. (OTEX) report earnings?
Open Text Corp. (OTEX) is schdueled to report earning on Apr 30, 2026, After Close (Confirmed).
What is Open Text Corp. (OTEX) earnings time?
Open Text Corp. (OTEX) earnings time is at Apr 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 OTEX EPS forecast?
OTEX EPS forecast for the fiscal quarter 2026 (Q3) is 0.91.
