OpenText's Q1 revenue rises 1.5%, beats estimates

Open Text

05/11/2025 21:29

Overview

OpenText Q1 fiscal 2026 revenue beats analyst expectations, growing 1.5% yr/yr

Company to divest eDOCS solution for $163 mln as part of portfolio reshaping

Outlook

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

Result Drivers

CLOUD BUSINESS GROWTH - Growth in Content Management cloud business contributed to 19 consecutive quarters of cloud organic growth

BUSINESS OPTIMIZATION - Co's Business Optimization Plan underway to drive operational efficiencies and support margin targets

PORTFOLIO SHAPING - Co to divest non-core eDOCS solution as part of strategy to focus on Information Management for AI

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.29 bln
$1.27 bln (6 Analysts)
Q1 Annual Recurring Revenue
$1.07 bln


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$61.59, about 14.9% above its November 4 closing price of C$52.44

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nCNW5yCnga

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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.)