Canada's OpenText Q2 revenue beats analyst expectations

Open Text

05/02/2026 21:09

Overview

Canada's OpenText Q2 revenue of $1.33 bln beat analyst expectations

Company's cloud revenue grew 3.4% yr/yr, marking 20 consecutive qtrs of organic growth

During the quarter, OpenText appointed Ayman Antoun as CEO, effective April 2026

Outlook

OpenText did not provide specific financial guidance for future quarters or fiscal year

Result Drivers

CONTENT MANAGEMENT CLOUD - 18% revenue growth in Content Management cloud business drove results, per Interim CEO James McGourlay

AI SOLUTIONS - OpenText's Aviator AI solutions enhanced security and compliance, contributing to results, per Interim CEO James McGourlay

DIVESTITURE STRATEGY - Divestiture of Vertica and eDOCS aligns with focus on core growth areas, per Executive Chair P. Thomas Jenkins

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.33 bln
$1.29 bln (5 Analysts)
Q2 EPS
$0.66
Q2 Net Income
$168 mln
Q2 Adjusted EBITDA
$491 mln
Q2 Annual Recurring Revenue
$1.06 bln
Q2 Cloud Revenue
$478 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Open Text Corp is C$54.00, about 68.2% above its February 4 closing price of C$32.11

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nCNWR5NJ2a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)