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SEC filingQ3 delivered revenue stability and strong net income growth driven by cost discipline, despite operating income pressure from restructuring initiatives.
Open Text Corporation reported Q3 FY2026 results showing revenue of $1.3 billion, up 2.2% from $1.3 billion in the prior year quarter. This stability underscores the resilience of our core Information Management business amid market dynamics. Gross profit rose to $937.3 million, a 4.3% increase from $898.3 million, expanding the gross margin to 73.1%. This improvement reflects effective management of product mix and cost efficiencies in delivery.
Net income surged 86.0% to $172.7 million from $92.8 million, boosting diluted EPS to $0.70 from $0.35—a 100% increase. This bottom-line strength results from disciplined cost management and favorable adjustments, positioning the company for sustained earnings power. Research and development expenses have decreased significantly over the nine-month period through restructuring and cost savings, enabling sharper focus on innovation priorities.
Overall, these results demonstrate progress in cost discipline and strategic focus, setting the stage for enhanced long-term shareholder value through portfolio optimization and AI-driven growth.