Canada's Open Text Q3 revenue rises 2.2% on cloud growth

Open Text

07/05/2026 21:34

Overview

Canada data management firm's fiscal Q3 revenue rose 2.2% yr/yr, driven by cloud growth

Adjusted EBITDA margin for fiscal Q3 was 34%, net income margin reached 13%

Company repurchased 9.7 mln shares in Q3, reducing shares outstanding by 6.7% yr/yr

Outlook

Company did not provide specific financial guidance for the current or future periods

Result Drivers

CLOUD GROWTH - Co said 6.6% yr/yr growth in cloud revenue was driven by enterprise clients managing and securing data for AI and regulatory needs

ENTERPRISE CLOUD BOOKINGS - Co reported 29.6% yr/yr increase in quarterly enterprise cloud bookings, reflecting demand for cloud services

Company press release: ID:nPn5sqrYla

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$0.70
Q3 Net Income
$173 mln
Q3 Adjusted EBITDA
$438 mln
Q3 Annual Recurring Revenue
$1.06 bln
Q3 Cloud Revenue
$493 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "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 71.9% above its May 6 closing price of C$31.41

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)