OpenText Posts Robust Q3 Fiscal 2026 Outcomes
OpenText Company delivered sturdy third quarter fiscal 2026 outcomes, with whole revenues reaching $1.28 billion, up 1% year-over-year. The corporate achieved a file non-GAAP EPS of $1.01, reflecting a 23.2% improve from the prior 12 months. Cloud revenues hit $493 million, rising 6.6% year-over-year and marking the twenty first consecutive quarter of natural cloud development.4716
Shares of OpenText (OTEX) rose 2.87% to $23.69 following the announcement.19
Key Monetary Highlights
- Cloud income: $493 million (+6.6% YoY)
- Annual Recurring Income (ARR): $1.06 billion (+2.7% YoY, 82% of whole income)
- Adjusted EBITDA: $438 million (34.1% margin, +260 bps YoY)
- GAAP gross margin: 73.1% (+150 bps YoY)
- Non-GAAP gross margin: 76.7% (+100 bps YoY)
- GAAP internet revenue: $173 million (+86% YoY)
- Free money movement: $305 million (YTD $686 million, a file)
- Share repurchases: 9.7 million shares in Q347
Govt Insights
Ayman Antoun, CEO, outlined 4 key priorities: listening to shoppers and companions, studying the enterprise, assessing strengths and alternatives, and constructing a sustainable development plan. He emphasised OpenText’s management in AI-driven knowledge administration.47
James McGourlay, President and Chief Consumer Officer, highlighted shopper wins together with Michelin for AI-enhanced B2B workflows, Hargassner with SAP integration, HPE Aruba for cyber intelligence, and Adom Power for ITOM with GenAI. He famous 41 cloud offers over $1 million, up 28% year-over-year, and YTD enterprise cloud bookings of $651 million, a file.47
Steve Rai, EVP and CFO, detailed profitability positive factors and enterprise optimization on observe for $490-$550 million in financial savings. Renewals remained sturdy at 95% for cloud internet retention.47
Tom Jenkins, Govt Chair, mentioned portfolio reshaping by means of divestitures like Vertica, specializing in core AI-enabling companies in content material, networks, ITOM, and cybersecurity.47
Product Improvements and Technique
OpenText launched enterprise knowledge and AI options on AWS Sovereign Cloud and a knowledge AI platform with over 1,500 connectors supporting main LLMs for agentic AI. The corporate positions itself for hybrid cloud deployments amid accelerating shopper cloud migrations.47
Up to date Steerage
OpenText maintained FY2026 whole income development at 1%-2% post-divestitures (about $30 million affect) however raised cloud income development to 4%-5% and enterprise cloud bookings to 16%-20%. Free money movement development outlook improved to 22%-25%.47
Upcoming Investor Occasions
The corporate will take part within the Needham Expertise, Media, & Shopper Convention on Could 14, Barclays Leveraged Finance Convention on Could 19, CIBC Expertise & Innovation Convention on Could 21, TD Cowen TMT Convention on Could 27, and Jefferies Software program Convention on Could 28.47
