Canada's Open Text Q4 revenue beats estimates on license, cloud growth

Open Text

06/08/2026 12:31

Overview
Canada data management firm's Q4 revenue rose 2.9% yr/yr, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company renewed share repurchase plan, authorizing buybacks up to 10% of public float

Outlook
Company says fiscal 2027 focus is on expanding sales capacity and ecosystem partnerships
Open Text describes fiscal 2027 as a foundation year for core organic growth in constant currency
Company says priorities for fiscal 2027 include cash generation, debt reduction, and capital allocation

Result Drivers
CLOUD GROWTH - Cloud revenues rose 6% yr/yr, marking 22 consecutive quarters of organic cloud growth, per company
LICENSE REVENUE - License revenue increased 24.4% yr/yr in Q4, supporting overall revenue growth
COST MANAGEMENT - Co said financial and operational discipline, including cost management, contributed to improved margins and profitability, per CFO Steve Rai

Company press release: ID:nPn4Bkw1ha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.35 bln
$1.32 bln (6 Analysts)
Q4 Adjusted EPS
Beat
$1.23
$1.05 (7 Analysts)
Q4 EPS
 
$0.64
 
Q4 Net Income
 
$156 mln
 
Q4 Adjusted EBITDA
 
$507 mln
 
Q4 Annual Recurring Revenue
 
$1.06 bln
 
Q4 Cloud Revenue
 
$503 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 Corporation is C$54.00, about 50.2% above its August 5 closing price of C$35.96
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

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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.)