Canada's OpenText Q2 revenue beats analyst expectations

Overview

• Canada's OpenText Q2 revenue of $1.33 bln beat analyst expectations

• Company's cloud revenue grew 3.4% yr/yr, marking 20 consecutive qtrs of organic growth

• During the quarter, OpenText appointed Ayman Antoun as CEO, effective April 2026

Outlook

• OpenText did not provide specific financial guidance for future quarters or fiscal year

Result Drivers

• CONTENT MANAGEMENT CLOUD - 18% revenue growth in Content Management cloud business drove results, per Interim CEO James McGourlay

• AI SOLUTIONS - OpenText's Aviator AI solutions enhanced security and compliance, contributing to results, per Interim CEO James McGourlay

• DIVESTITURE STRATEGY - Divestiture of Vertica and eDOCS aligns with focus on core growth areas, per Executive Chair P. Thomas Jenkins

Key Details

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$54.00, about 68.2% above its February 4 closing price of C$32.11

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nCNWR5NJ2a

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