OpenText Q4 revenue beats expectations

Open Text

07/08/2025 21:38

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Overview

OpenText Q4 revenue of $1.311 bln beats analyst expectations, per LSEG data

Cloud revenue for Q4 grows 2.1% yr/yr, marking 18 consecutive qtrs of growth

Co announces 5% dividend increase and $300 mln share repurchase program

Outlook

OpenText expects 3% to 4% cloud revenue growth in fiscal 2026

Company anticipates 1% to 2% total revenue growth in fiscal 2026

OpenText sees growth opportunities in AI, cloud, and security

Result Drivers

AI PLATFORM - Demand for AI-driven Titanium X platform boosts cloud bookings by 32%, per CEO Mark J. Barrenechea

DIVESTITURE IMPACT - AMC divestiture affects total revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.31 bln
$1.29 bln (5 Analysts)
Q4 EPS
$0.11
Q4 Net Income
$29 mln
Q4 Adjusted EBITDA
$444 mln
Q4 Annual Recurring Revenue
$1.05 bln
Q4 Cloud Revenue
$475 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "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$55.09, about 27.8% above its August 6 closing price of C$39.78

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

Press Release: ID:nPn5Mlj2na

 (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.)