OTEX · Open Text Corporation

Open Text Corporation delivered Q3 FY2026 results with total revenues of $1.283 billion, up 2.2% year-over-year, driven primarily by strong cloud services and subscriptions growth of 6.6% to $493 million, marking the 21st consecutive quarter of cloud organic growth. This resilience in cloud bookings, up 29.6% Y/Y to $196 million in enterprise cloud bookings, underscores client demand for data management solutions amid enterprise AI adoption and cloud migrations. Customer support revenues dipped slightly by 0.4%, while license and professional services showed mixed performance.

Profitability remained robust with GAAP net income of $173 million (13.5% margin, +86% Y/Y) and Adjusted EBITDA of $438 million (34.1% margin, +10.8% Y/Y), reflecting operational discipline as noted by CFO Steve Rai. Non-GAAP diluted EPS rose 23.2% Y/Y to $1.01. Management highlighted momentum in cloud business enabling clients to manage and secure data for AI, with President James McGourlay emphasizing flexibility for large enterprises.

Capital allocation was aggressive, with $313 million returned to shareholders including $247 million in share repurchases (9.7 million shares cancelled, reducing outstanding shares 6.7% Y/Y) and $66 million in dividends. The Board declared a $0.275 per common share dividend payable June 19, 2026, to shareholders of record June 5, affirming commitment to shareholder returns despite discretion on future payments. Leadership transition completed with Ayman Antoun as CEO effective April 20, 2026, signaling focus on execution and growth. The increased $500 million share repurchase program enhances capital flexibility.