OPEN TEXT (OTEX) Company Report

OpenText is executing a divestiture strategy to shed up to $1 billion in revenue, or 15-20% of the company, to concentrate on its fastest-growing and most profitable core businesses: Content, ITOM, Business Networks, and Cyber.
The company is accelerating its shift to a cloud-first model, with cloud growth increasing from 2% to 6% in the most recent quarter, and anticipates replacing $1 of maintenance revenue with $2 of cloud revenue.
OpenText's strategic focus is on providing content and data platforms, including Aviator, to train agentic AI, utilizing its extensive 1,500+ connectors and multi-model support for various large language models.
A search for a new CEO is being conducted by a newly constituted board, with an announcement anticipated by the end of the calendar year.

2 days ago

Transcript

OpenText discusses strategic direction, divestitures, and AI initiatives

OTEX

M&A

Revenue Acceleration/Inflection

New Projects/Investments

OpenText is undergoing a significant strategic shift, planning to divest up to $1 billion in revenue, aiming to reduce the company's size by 15%-20% from its current $5+ billion to $4+ billion. This divestiture process is expected to occur over the next three quarters, with one unit sold per quarter.
The company is accelerating its cloud transition, with cloud growth increasing from 2% to 6%. OpenText aims to replace $1 of maintenance revenue with multiple dollars of cloud revenue, initially targeting $2 , and has made all major products available in the cloud.
OpenText's core businesses—content, ITOM, business networks, and cyber—are central to its AI strategy, providing essential human-generated, transactional, and machine-generated content for training agentic AI. The company recently launched the Aviator data platform, designed to be multi-model and multi-application, to support this initiative.
A CEO search is in progress, with an announcement anticipated by the end of this calendar year, focusing on candidates with a solutions background.

2 days ago

Transcript

OpenText expands partnership with Google Cloud

OTEX

New Projects/Investments

Product Launch

OpenText has expanded its partnership with Google Cloud to deliver transformative solutions across artificial intelligence (AI), data privacy, and sovereign cloud infrastructure.
The collaboration will leverage Google's Gemini models and Vertex AI to drive new AI use cases and deliver a suite of intelligent agents in Gemini Enterprise, aiming to automate claims processing, enhance fraud detection, and streamline regulatory reporting for industries like insurance, financial services, and retail.
A new data protection solution for the retail sector integrates OpenText Voltage with Google BigQuery, providing advanced encryption and data protection for sensitive data.
OpenText's Private Cloud offerings now integrate with Google Cloud's Sovereign Cloud solutions, enabling organizations in regulated industries to meet stringent compliance requirements and maintain control over their data.

Nov 19, 2025, 2:00 PM

Press Release

OpenText Unveils AI Data Platform and 18-Month AI Roadmap

OTEX

Product Launch

New Projects/Investments

OpenText announced its OpenText AI Data Platform (AIDP), a new vision for enterprise AI designed to securely activate information and deliver contextual, trusted automation at scale by uniting data management and AI.
The platform leverages OpenText's expertise in data custodianship to establish contextual data foundations for accurate AI results, with key components like OpenText Aviator supporting multi-cloud, multi-model, and multi-application environments.
OpenText is expanding its partnership with Databricks to co-innovate on the AIDP, aiming to unify, govern, and analyze enterprise data for trusted AI insights.
At OpenText World 2025, the company also outlined an 18-month roadmap (OT 26.1 - OT 27.2) and introduced several innovations, including OpenText Aviator Studio, Knowledge Discovery, Data Compliance, and Aviator AI Services.

Nov 18, 2025, 2:38 PM

Press Release

OpenText Reports Q1 Fiscal 2026 Results and Strategic Focus

OTEX

Earnings

CFO Change

M&A

OpenText reported Q1 Fiscal 2026 total revenues of $1.3 billion, an increase of 1.5% year over year, with cloud revenue up 6% year over year to $485 million. Adjusted EBITDA was $467 million, representing a 36.3% margin, up 130 basis points year over year, and adjusted EPS was $1.05, up 12.9% year over year.
For Q2 Fiscal 2026, the company expects total revenue between $1.275 billion and $1.295 billion and an adjusted EBITDA margin between 35.5% and 36%. The Fiscal 2026 annual outlook remains unchanged, with revenue expected to skew higher towards a strong Q4.
OpenText is focusing on its core business units in enterprise information management to train agentic AI and plans to sell off non-core business units, with the first sale of the eDocs business already announced. The goal is to divest 15%-20% of overall revenue at a pace of approximately one per quarter over the next year.
Steve Wray joined as Executive VP and CFO in October 2025, and the search for a permanent CEO is ongoing.

Nov 6, 2025, 1:30 PM

Transcript

OpenText Reports Q1 FY26 Financial Results with Revenue Growth and Strategic Divestiture

OTEX

Earnings

M&A

Share Buyback

OpenText reported total revenues of $1.288 billion for the first quarter of fiscal year 2026, a 1.5% year-over-year increase, with cloud revenues growing 6.0% year-over-year to $485 million.
The company achieved GAAP net income of $147 million and GAAP diluted EPS of $0.58, representing 73.8% and 81.3% year-over-year increases, respectively.
Adjusted EBITDA reached $467 million, with a 36.3% margin, and free cash flows were $101 million, a 186.4% year-over-year increase for the quarter ended September 30, 2025.
OpenText announced the strategic divestiture of an on-premise solution (eDOCS) for US$163 million and repurchased $100 million of common shares.
The Board declared a quarterly cash dividend of $0.275 per common share on November 4, 2025.

Nov 5, 2025, 9:02 PM

8-K

OpenText Reports Fiscal Year 2026 First Quarter Financial Results

OTEX

Earnings

Dividends

Share Buyback

OpenText reported total revenues of $1.288 billion, a 1.5% year-over-year increase, with cloud revenues growing 6.0% year-over-year to $485 million for the first quarter ended September 30, 2025.
The company delivered GAAP diluted EPS of $0.58 and Non-GAAP diluted EPS of $1.05, alongside a 36.3% Adjusted EBITDA margin.
Operating cash flows reached $148 million and free cash flows were $101 million, reflecting substantial year-over-year growth of 289.9% and 186.4%, respectively.
OpenText repurchased $100 million of common shares and declared a quarterly cash dividend of $0.275 per common share.
Strategic initiatives include the divestiture of an on-premise solution (eDOCS) for US$163 million and the appointment of Steve Rai as EVP, Chief Financial Officer.

Nov 5, 2025, 9:01 PM

Press Release

OpenText Launches Cloud Editions 25.4 with AI Innovations

OTEX

Product Launch

New Projects/Investments

OpenText (OTEX) launched Cloud Editions (CE) 25.4 on October 14, 2025, introducing innovations designed to help organizations securely leverage their information and integrate AI.
CE 25.4 focuses on "AI in Context," providing tools to prepare trusted enterprise data for AI consumption, deliver functional role-specific AI solutions, and ensure secure, governed, and compliant information management.
The release includes new Aviator capabilities across various business functions, such as policy and compliance management, document classification, service management, and anomaly detection.
OpenText is also offering a comprehensive suite of advisory and support services to assist customers in maximizing the value of CE 25.4.

Oct 14, 2025, 1:00 PM

Press Release

Open Text Corporation to Divest Non-Core Unit

OTEX

M&A

New Projects/Investments

Open Text Corporation (OTEX) has reached a definitive agreement to divest an on-premise solution (eDOCS), part of its Analytics portfolio, to NetDocuments for US$163 million in cash.
The divested business contributed approximately $30 million in annual revenue in OpenText’s fiscal year ended June 30, 2025.
OpenText intends to use the proceeds from the sale to reduce its outstanding debt.
The transaction is expected to close by early 2026, subject to customary approvals and closing conditions.

Oct 2, 2025, 9:59 PM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for OPEN TEXT.

Ask Fintool AI Agent

Get instant answers from SEC filings, earnings calls & more

What are OPEN TEXT's strategic priorities?How is OPEN TEXT positioned vs competitors?How did OPEN TEXT do last quarter?

Let Fintool AI Agent track OPEN TEXT's earnings for you

Get instant analysis when filings drop