olivLaw · US equity research
Open Text Corporation OTEX
Services-Computer Integrated Systems Design · SIC 7373 · Vertical: Services-Computer Integrated Systems Design (SIC 7373)
OpenText is a Canadian enterprise data management company whose secure data layer underpins AI outcomes for large organizations. In fiscal 2026 total revenues reached 5.246 billion USD, while cloud revenues grew 5.5%, showing that the shift to subscriptions continues.
At the close of 04 Nov 2026, Open Text Corporation (OTEX) stock was 26.59 USD (+3.22% on the day), with market capitalisation 6.4 bn USD, P/E 10.3 on diluted EPS of 2.58 USD over the last 12 months, dividend yield 4.14%, beta 0.93, 52-week range 20.01–38.02 USD. Latest reported quarter (Q4 2026): revenue of 1.3 bn USD (+2.9% YoY), net income of 155.7 m USD (+439.9% YoY), diluted EPS 0.64 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 58.9
- strong (55–70)
- Bollinger (20, 2)
- 23.46 – 28.72
- in the upper half of the band · %B 0.60 · band width 20.2%
- SMA 50 / 200
- 24.41 / 23.82
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.75 / 0.87
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +18.2% | −1.1% | +19.3 pp | — |
| 3 months | +3.7% | −0.5% | +4.1 pp | — |
| 6 months | +15.5% | +4.4% | +11.1 pp | — |
| Year to date | −18.4% | +12.3% | −30.7 pp | — |
| 1 year | −28.5% | +13.5% | −42.0 pp | −34.8% |
| 3 years | −26.7% | +76.4% | −103.2 pp | −15.9% |
| 5 years | −48.5% | +63.7% | −112.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn |
| Cost of revenue | 358.6 m | 356.5 m | 356.1 m | 362.8 m | 350.6 m | 344.5 m | 345.2 m | 337.6 m |
| Gross profit | 910.4 m | 978.0 m | 898.3 m | 947.7 m | 937.5 m | 982.2 m | 937.3 m | 1.0 bn |
| Operating income | 206.2 m | 295.8 m | 209.1 m | 181.6 m | 269.9 m | 291.8 m | 201.2 m | 319.7 m |
| Pre-tax income | 86.3 m | 280.8 m | 103.7 m | 11.3 m | 185.9 m | 215.5 m | 207.0 m | 250.5 m |
| Income tax | 1.9 m | 50.9 m | 10.8 m | -17.6 m | 39.2 m | 47.3 m | 34.3 m | 94.8 m |
| Net income | 84.4 m | 229.9 m | 92.8 m | 28.8 m | 146.6 m | 168.1 m | 172.7 m | 155.7 m |
| Diluted EPS | 0.32 | 0.87 | 0.35 | 0.11 ≈ | 0.58 | 0.66 | 0.70 | 0.64 ≈ |
| Operating cash flow | -77.8 m | 348.0 m ≈ | 402.2 m ≈ | 158.2 m | 147.8 m | 318.7 m ≈ | 354.6 m ≈ | 185.8 m |
| Capex | 39.3 m | 41.3 m ≈ | 28.4 m ≈ | 34.2 m | 46.5 m | 39.2 m ≈ | 49.7 m ≈ | 63.8 m |
| Dividends paid | 69.1 m | 68.3 m | 67.9 m | 66.2 m | 68.2 m | 68.5 m | 66.3 m | 65.4 m |
| Share repurchases | 87.4 m | 66.0 m ≈ | 114.6 m ≈ | 145.3 m | 107.6 m | 50.0 m ≈ | 247.0 m ≈ | 11.8 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 10 percentile of its own 39-quarter history (min 6.8, median 34.1, max 134.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.9 bn | 3.1 bn | 3.4 bn | 3.5 bn | 4.5 bn | 5.8 bn | 5.2 bn | 5.2 bn |
| Revenue YoY | +1.9% | +8.4% | +8.9% | +3.2% | +28.4% | +28.6% | −10.4% | +1.5% |
| Net income | 285.5 m | 234.2 m | 310.7 m | 397.1 m | 150.4 m | 465.1 m | 435.9 m | 643.0 m |
| Net income YoY | +17.9% | −18.0% | +32.6% | +27.8% | −62.1% | +209.3% | −6.3% | +47.5% |
| Diluted EPS | 1.06 | 0.86 | 1.14 | 1.46 | 0.56 | 1.71 | 1.65 | 2.58 |
| Diluted EPS YoY | +16.5% | −18.9% | +32.6% | +28.1% | −61.6% | +205.4% | −3.5% | +56.4% |
| net % | 10.0% | 7.5% | 9.2% | 11.4% | 3.4% | 8.1% | 8.4% | 12.3% |
| Free cash flow | 812.4 m | 881.8 m | 812.4 m | 888.7 m | 655.4 m | 808.4 m | 687.4 m | 807.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- 956.0 m USD
- Financial debt
- 5.8 bn USD
- Net debt
- 4.8 bn USD
- Equity
- 4.0 bn USD
- Total assets
- 13.1 bn USD
- Debt / equity
- 1.44x
- Current ratio
- 0.81x
- ROE
- 16.2%
- ROA
- 4.8%
- FCF margin
- 15.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.4 bn | 3.5 bn | 4.5 bn | 5.8 bn | 5.2 bn | 5.2 bn | SEC (XBRL)· 06 Aug 2026verified |
| Cost of revenue | 1.0 bn | 1.1 bn | 1.3 bn | 1.6 bn | 1.4 bn | 1.4 bn | SEC (XBRL)· 06 Aug 2026verified |
| Gross profit | 2.4 bn | 2.4 bn | 3.2 bn | 4.2 bn | 3.7 bn | 3.9 bn | SEC (XBRL)· 06 Aug 2026verified |
| Operating income | 740.9 m | 644.8 m | 516.3 m | 887.1 m | 892.7 m | 1.1 bn | SEC (XBRL)· 06 Aug 2026verified |
| Pre-tax income | 650.8 m | 516.0 m | 221.3 m | 729.3 m | 482.1 m | 858.9 m | SEC (XBRL)· 06 Aug 2026verified |
| Income tax | 339.9 m | 118.8 m | 70.8 m | 264.0 m | 46.0 m | 215.6 m | SEC (XBRL)· 06 Aug 2026verified |
| Net income | 310.7 m | 397.1 m | 150.4 m | 465.1 m | 435.9 m | 643.0 m | SEC (XBRL)· 06 Aug 2026verified |
| Diluted EPS | 1.14 | 1.46 | 0.56 | 1.71 | 1.65 | 2.58 | SEC (XBRL)· 06 Aug 2026verified |
| Weighted average diluted shares | 273.5 m | 271.9 m | 270.5 m | 272.6 m | 263.7 m | 249.4 m | SEC (XBRL)· 06 Aug 2026verified |
| Dividend per share | 0.78 | 0.88 | 0.97 | 1.00 | 1.05 | 1.10 | SEC (XBRL)· 06 Aug 2026verified |
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.6 bn | 1.7 bn | 1.2 bn | 1.3 bn | 1.2 bn | 956.0 m | SEC (XBRL)· 06 Aug 2026verified |
| Receivables | 438.5 m | 426.7 m | 682.5 m | 626.2 m | 659.7 m | 751.0 m | SEC (XBRL)· 06 Aug 2026verified |
| Current assets | 2.2 bn | 2.3 bn | 2.3 bn | 2.3 bn | 2.2 bn | 2.1 bn | SEC (XBRL)· 06 Aug 2026verified |
| Property, plant & equipment, net | 233.6 m | 244.7 m | 356.9 m | 367.7 m | 375.3 m | 522.2 m | SEC (XBRL)· 06 Aug 2026verified |
| Goodwill | 4.7 bn | 5.2 bn | 8.7 bn | 7.5 bn | 7.5 bn | 7.3 bn | SEC (XBRL)· 06 Aug 2026verified |
| Intangibles (excl. goodwill) | 1.2 bn | 1.1 bn | 4.1 bn | 2.5 bn | 2.0 bn | 1.5 bn | SEC (XBRL)· 06 Aug 2026verified |
| Total assets | 9.6 bn | 10.2 bn | 17.1 bn | 14.2 bn | 13.8 bn | 13.1 bn | SEC (XBRL)· 06 Aug 2026verified |
| Accounts payable | 57.5 m | 114.0 m | 162.7 m | 151.2 m | 136.2 m | 127.5 m | SEC (XBRL)· 06 Aug 2026verified |
| Short-term debt | 10.0 m | 10.0 m | 320.9 m | 35.9 m | 35.9 m | 35.9 m | SEC (XBRL)· 06 Aug 2026verified |
| Long-term debt | 3.6 bn | 4.2 bn | 8.6 bn | 6.4 bn | 6.3 bn | 5.7 bn | SEC (XBRL)· 06 Aug 2026verified |
| Current liabilities | 1.4 bn | 1.5 bn | 3.2 bn | 2.8 bn | 2.7 bn | 2.6 bn | SEC (XBRL)· 06 Aug 2026verified |
| Equity | 4.1 bn | 4.0 bn | 4.0 bn | 4.2 bn | 3.9 bn | 4.0 bn | SEC (XBRL)· 06 Aug 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 876.1 m | 981.8 m | 779.2 m | 967.7 m | 830.6 m | 1.0 bn | SEC (XBRL)· 06 Aug 2026verified |
| Capex | 63.7 m | 93.1 m | 123.8 m | 159.3 m | 143.2 m | 199.3 m | SEC (XBRL)· 06 Aug 2026verified |
| Free cash flow | 812.4 m ≈ | 888.7 m ≈ | 655.4 m ≈ | 808.4 m ≈ | 687.4 m ≈ | 807.5 m ≈ | SEC (XBRL)· 06 Aug 2026derived |
| Investing cash flow | -68.8 m | -971.0 m | -5.7 bn | 2.1 bn | -153.5 m | 117.2 m | SEC (XBRL)· 06 Aug 2026verified |
| Financing cash flow | -924.5 m | 138.5 m | 4.4 bn | -3.0 bn | -834.7 m | -1.3 bn | SEC (XBRL)· 06 Aug 2026verified |
| Dividends paid | 210.7 m | 237.7 m | 259.5 m | 267.4 m | 271.5 m | 268.4 m | SEC (XBRL)· 06 Aug 2026verified |
| Share repurchases | 119.1 m | 177.0 m | 0 | 150.0 m | 413.3 m | 416.4 m | SEC (XBRL)· 06 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 56 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 6.4 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet0
- Valuation64
- Quality79
- Growth28
- Returns100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.00 – 11.69 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/Sales0.00 – 11.69 (Mid 1.17)10 companies used · median multiple 1.0x · quartiles 0.8x – 1.5xCACI, CREX, DAIC, FUSE, GDDY, KD, LDOS, PSN, RBBN, SAIC
- Peers: EV/EBITDAunavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 56/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 73.7% | 84 (on a fixed band) | 11% |
| EBIT margin · Quality | 20.6% | 88 (vs peers) | 9% |
| FCF margin · Quality | 15.4% | 62 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 5.4% | 21 (on a fixed band) | 18% |
| Revenue growth (YoY) · Growth | 1.5% | 41 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 0.8x | 0 (on a fixed band) | 7% |
| EV/Sales · Valuation | 2.1x | 38 (vs peers) | 18% |
| FCF yield · Valuation | 12.5% | 100 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 10.6% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial0/100 · 1/2 factors with a value
- Growth28/100 · 2/2 factors with a value
- Quality79/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation64/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
OPEN TEXT CORP (OTEX). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 5.2 bn USD in 2026; YoY growth 1.5%; net margin 12.3%; ROE 16.2%.
The estimated value range is 0.00–11.69 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 1.17 USD, the price of 26.59 USD leaves a potential of -95.6% (value / price − 1) and a margin of safety of -2,164.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 56/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Gross margin: 73.7%
- EBIT margin: 20.6%
- FCF yield: 12.5%
- Shareholder yield (distributions): 10.6%
What contradicts it
- Revenue CAGR 3Y: 5.4%
- Current ratio: 0.8x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA.
Versus the vertical median
Services-Computer Integrated Systems Design (SIC 7373) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LDOSLeidos Holdings, Inc. | 16.6 bn | 12.2 | 28.2% | 8.0% | +3.1% | −29% / +26% |
| GDDYGoDaddy Inc. | 14.3 bn | 16.2 | — | 18.6% | +8.3% | −7% / +18% |
| CACICACI International Inc | 14.0 bn | 25.9 | 12.5% | 5.5% | +10.9% | +2% / +97% |
| JKHYJack Henry & Associates, Inc. | 12.6 bn | 25.7 | 24.0% | 19.8% | +7.1% | +3% / +13% |
| IONQIonQ, Inc. | 11.3 bn | — | -60.8% | -553.3% | +201.9% | −40% / +142% |
| OTEXOpen Text Corp | 6.4 bn | 10.3 | 16.2% | 12.3% | +1.5% | −29% / −27% |
| SAICScience Applications International Corporation | 6.3 bn | 17.6 | 25.7% | 5.1% | −2.9% | +75% / +28% |
| WAYWaystar Holding Corp. | 5.7 bn | 42.9 | 3.7% | 10.7% | +16.5% | −20% / unavailable |
| PSNParsons Corporation | 5.5 bn | 38.2 | 5.7% | 2.3% | −5.7% | −38% / −16% |
| KDKyndryl Holdings, Inc | 3.7 bn | 48.9 | 6.8% | 0.5% | +0.2% | −35% / −7% |
| AGYSAgilysys, Inc. | 3.5 bn | 78.5 | 13.6% | 12.9% | +15.9% | −0% / +42% |
| NTCTNetscout Systems Inc | 2.8 bn | 23.3 | 7.5% | 13.7% | +4.5% | +42% / +90% |
| AURAurora Innovation, Inc. | 2.6 bn | — | -45.7% | -13,328.6% | unavailable | −3% / +86% |
| PONYPony AI Inc. | 2.1 bn | — | -10.3% | -148.9% | +20.0% | −65% / unavailable |
| OSPNOneSpan Inc. | 872.9 m | 13.2 | 26.8% | 27.5% | +0.0% | +94% / +136% |
| TLSTelos Corporation | 378.2 m | — | -14.9% | -8.1% | +52.2% | −12% / +23% |
| SLPSimulations Plus, Inc. | 374.2 m | 46.7 | 6.2% | 9.9% | +13.1% | unavailable / unavailable |
| SMRTSmartrent, Inc. | 307.5 m | — | -7.6% | -11.0% | −12.9% | −6% / −48% |
| ASURAsure Software, Inc. | 293.6 m | — | -1.9% | — | +24.3% | +22% / +22% |
| VEEAVeea Inc. | 281.2 m | — | — | -2,491.9% | +56.6% | −55% / −98% |
| RBBNRibbon Communications Inc. | 275.9 m | 22.5 | 5.0% | 2.3% | +1.3% | −46% / −28% |
| KDKKodiak AI, Inc. | 220.7 m | — | — | -4,259.6% | −74.6% | −82% / unavailable |
| UISUnisys Corp | 171.4 m | — | — | -21.7% | −2.9% | −12% / −51% |
| AIOSAIOS Tech Inc. | 138.9 m | — | -208.9% | -4,359.1% | −98.5% | −87% / −86% |
| MRLNMerlin, Inc. | 91.5 m | — | — | — | unavailable | −92% / unavailable |
1- and 3-year price returns: for OTEX from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 16.32 Total return -35% · Per year -35% | 28.84 Total return 13% · Per year 13% | 43.42 Total return 69% · Per year 69% |
| 3 years | 16.11 Total return -29% · Per year -11% | 32.02 Total return 35% · Per year 10% | 52.89 Total return 117% · Per year 29% |
| 5 years | 15.91 Total return -23% · Per year -5% | 35.55 Total return 59% · Per year 10% | 64.43 Total return 176% · Per year 22% |
- Exit P/E± 8.00
- Net margin± 5.60
- Annual revenue growth± 4.56
- Annual dilution± 0.47
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
OpenText is a Canadian enterprise data management company whose secure data layer underpins AI outcomes for large organizations. In fiscal 2026 total revenues reached 5.246 billion USD, while cloud revenues grew 5.5%, showing that the shift to subscriptions continues.
SWOT
Strengths
- The company has a broad data management portfolio, high recurring revenues and a diversified enterprise client base.
- Adjusted EBITDA margins are high, and operating cash flow supports capital returns to shareholders.
- Deployment flexibility, including sovereign cloud, can be an advantage in regulated sectors.
Weaknesses
- Total revenue growth is modest, and customer support and professional services revenues declined in fiscal 2026.
- The company has gone through an extensive optimization plan and asset divestitures, which may affect portfolio continuity.
- The level of debt and the pressure to reduce it limit flexibility to invest aggressively in growth.
Opportunities
- Demand for governed data in enterprise AI projects could accelerate growth in the cloud segment.
- Expansion through the partner ecosystem and integrators could open new markets, especially in the mid-market.
- Investment in sovereign cloud and agentic AI, such as in Ireland, could strengthen the position in Europe.
Threats
- Competitors offering integrated or cheaper AI solutions could reduce the company's market share.
- Slower client investment or delayed purchasing decisions could affect revenues.
- Geopolitical risks, tariffs and currency movements could create volatility in results.
Risks
- Weak organic growthhigh
Total revenues grew modestly in fiscal 2026, and management aims to return to organic growth. If this takes longer, investor confidence could be affected.
- Transition to subscriptionsmedium
The move from licences to cloud can change revenue recognition timing and pressure margins, especially if clients choose smaller contracts.
- Intellectual property protectionmedium
The company acknowledges its rights may be hard to enforce in some jurisdictions, and the use of AI in development creates legal uncertainty.
- Cybersecurity riskhigh
The company offers security products and manages sensitive client data. A breach could damage its reputation and attract litigation.
- Geopolitical and trade tensionslow
Regional conflicts and tariffs can affect supply chains, exchange rates and clients' decisions to invest.
Investment thesis
What would need to be true (bull case)
- If demand for governed data in AI projects strengthens, the company could turn its recurring revenue base into faster growth.
- Solid operating margins and cash flow allow capital returns, which can support long-term shareholder confidence.
- Expansion in sovereign cloud and partnerships with integrators could open new markets in Europe and the mid-market.
What would break the thesis
- Total growth remains modest, and support and services revenues have declined, which could signal structural pressure on the client base.
- Divestitures and the optimization plan may reduce the size of the portfolio and complicate the organic growth goal.
- Competition from hyperscalers and AI vendors could limit the company's ability to maintain pricing and market share.
What to watch
- Development of constant currency organic growth in total revenuesQ1 2027
- Trend in enterprise cloud bookings and ARRQ2 2027
- Progress on debt reduction and the share repurchase programme2027
- Impact of asset divestitures on margins and portfolio profilenext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Founded in 1991, OpenText offers data management products for organizations across the private, public and regulated sectors, with deployment on-premise or in public, private or sovereign cloud. The company describes its strategy as centred on trusted enterprise data for AI, which clients can integrate with any enterprise-grade language model. Through its Aviator agents, OpenText aims to connect existing data to automated processes.
The revenue model has four streams: cloud services and subscriptions, customer support, licences and professional services. Customer support, renewed annually, remains a significant part of recurring revenue. Management states that disciplined execution and capital allocation aim to return the business to sustainable organic growth on a constant currency basis.
In fiscal 2026 the company completed divestitures of non-core assets such as Vertica and eDOCS, as part of the business optimization plan announced in July 2024. The company also returned capital to shareholders through dividends and share repurchases as part of its use of cash flow.
Segments
Content
Content is the company's largest product category and includes content management, integration and intelligent automation. The products manage the information lifecycle from capture to archiving and integrate with systems such as SAP S/4HANA, Salesforce and Microsoft 365.
Cybersecurity (Enterprise)
This category brings together threat detection and response, identity and access management, application security and data protection for large organizations with hybrid IT environments. The core category also includes managed security services.
Analytics
Analytics provides high-speed data processing, unstructured data analysis and visualization. The category saw significant divestitures in fiscal 2026, which changes its weight and profile within the portfolio.
Market context
OpenText operates in the enterprise data management market, where AI adoption makes governed and secured data increasingly necessary. The company defines its offering as a component of the AI stack rather than only a document platform, which in principle widens its potential demand.
The software market is changing quickly, and the move from perpetual licences to subscriptions could put pressure on pricing and revenue recognition timing. Geopolitical factors and trade tariffs are cited as risks to client demand.
Trends
- Enterprise AI adoptiontailwind
Organizations need governed data to use AI, which could create demand for data management products. If clients slow investment or choose competing solutions, the benefit could be smaller than expected.
- Shift to cloud and subscriptionsmixed
Cloud revenues are growing while traditional licences and support decline in some cases. The transition could improve long-term revenue predictability, but it could affect margins and recognition timing in the short term.
- Geopolitical tensions and tariffsheadwind
The Russia-Ukraine and Middle East conflicts, along with changing trade policies, are cited as factors that may influence the macroeconomic environment. The effect on demand and exchange rates could be negative if tensions escalate.
- AI regulationmixed
New AI rules may raise development and compliance costs, but they may also create demand for governed data management. The effect depends on the final form of regulation and how quickly the company adapts.
Competitive position
The analysed sources do not explicitly list the company's competitors. The filings do note that the enterprise data market is becoming more competitive and that new AI technologies could make existing solutions less competitive. Competition arises mainly from alternatives created by technological progress.
The company aims to differentiate through data sovereignty, deployment flexibility and integration with any enterprise AI model. The advantage could be limited if competitors offer comparable solutions at lower cost or with tighter integration into hyperscale platforms.
- New AI-based technology alternatives
The filing warns that new AI-based solutions developed by competitors could make existing products less competitive or obsolete.
- Hyperscale cloud platform providers
The company relies on partnerships with hyperscalers, but these providers can also compete directly through their own data and AI services.
- Global and regional systems integrators
They are both partners and potential competitors, since they can offer their own data management solutions to clients.
- Specialised cybersecurity vendors
The security segment faces competition from vendors offering threat detection and response on dedicated platforms.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- OpenText (OTEX) Posts Record Profits While Core Revenue StallsYahoo Finance — News · 04 Sept 2026 · EN
- Braţul din România al Micro Focus, brand de software preluat de canadienii de la OpenText, şi-a dublat profitul în 2025, la un nivel record de 16,7 mil. leiZiarul Financiar · 04 Aug 2026 · RO
The latest news item in our archive is from 04 Sept 2026; the newest SEC filing is from 01 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report01 Oct 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report01 Oct 2026Other events · Financial statements and exhibits
- Current report25 Sept 2026Other events · Financial statements and exhibits
- Current report23 Sept 2026Other events · Financial statements and exhibits
- Current report23 Sept 2026Other events · Financial statements and exhibits
- Current report22 Sept 2026Other events · Financial statements and exhibits
- Annual report06 Aug 2026
- Current report06 Aug 2026Results of operations · Other events · Financial statements and exhibits
- Current report17 Jul 2026Departure or appointment of officers · Other events · Financial statements and exhibits
- Current report11 May 2026Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Open Text Corporation · 06 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Open Text Corporation · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.