EarningsQ4 2026 Earnings Report
MX:OTEXN Q4 2026 EPS Results
Actual EPS$21.74
Consensus EPS$18.30
Beat/MissBeat by +$3.44
One Year Ago EPS$16.81
MX:OTEXN Q4 2026 Revenue Results
Actual Revenue$23.53B
Expected Revenue$23.15B
Beat/MissBeat by +$385.17M
YoY Revenue Growth+2.91%
Earnings Announcement Details
QuarterQ4 2026
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
MX:OTEXN Upcoming Earnings
Open Text's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q4 2026 Earnings Call Audio
MX:OTEXN Q4 2026 Earnings Call
0:00 / 0:00
Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed positive operational momentum—particularly in cloud growth, AI (Aviator) traction, improved margins, healthy cash generation and meaningful debt reduction—alongside a deliberate multi-hundred-million dollar reinvestment plan in sales, partners and R&D for FY27. Near-term headwinds include modest overall revenue growth, declines in customer support and professional services, a dip in cloud net renewal rate, the ongoing impact of divestitures on comparables, and guidance that reflects conservative top-line expectations and margin moderation due to investments. On balance, the company is positioning for longer-term, AI-driven growth while accepting near-term reinvestment and divestiture-related noise.Company Guidance
Cloud Revenue and Momentum
Q4 cloud revenue of $503M, up 6.0% year-over-year (4.3% constant currency); core cloud revenue $341M, up 10.7% y/y (8.9% CC). Company reported 22nd consecutive quarter of organic cloud growth, closed 64 cloud deals > $1M in Q4 (up 49% y/y), and cloud CRPO up 10% y/y.
Core Portfolio Growth and FY27 Guidance
Core portfolio delivered strength in Q4: $1.05B, up 5.3% y/y (3.1% CC). Management guides fiscal 2027 core revenue growth of 2%–3% in constant currency and expects each of the four core businesses to grow; core cloud revenue guidance of 8%–10% CC.
Improved Margins and Profitability
GAAP gross margin 75.0% (up 270 bps y/y) and non-GAAP gross margin 78.3% (up 220 bps). GAAP operating margin 20.6% (up 340 bps). Q4 adjusted EBITDA margin was ~37.1% (CEO) and full-year adjusted EBITDA margin 36.3% (up 170 bps). Non-GAAP net income in Q4 $299M (up 19.7% y/y) and non-GAAP diluted EPS $1.23 (up 26.8%).
Strong Cash Flow and Balance Sheet Actions
Q4 operating cash flow $186M (up 17.5% y/y); full-year operating cash flow $1.0B (up 21.2% y/y); full-year free cash flow $808M (up 17.5%). Debt reduction of $649M in fiscal 2026 (including $300M discretionary payment in Q4) reduced net leverage from 3.02x to 2.75x. Returned $268.4M in dividends and repurchased ~14.8M shares ( ~6% of outstanding).
AI Adoption and Aviator Traction
Aviator AI platform deals including Aviator agents have more than doubled annually since introduction (8 quarters ago). When Aviator agents are included in deals, deal sizes are ~4x larger. Customer impact examples include cutting mean time to repair from one day to one hour and reducing mobile test effort by 35%.
Bookings and RPO Strength
Enterprise cloud bookings $295M in Q4, up 24.1% y/y and above prior target range. Total RPO up 7% y/y and Q4 indicators show improving forward demand (cloud CRPO growth and strong >$1M deal activity).
Proactive Go-to-Market and Talent Investments
Company is hiring >300 new quota-carrying salespeople worldwide, reactivating and investing in partner ecosystem, and reallocating R&D toward core, cloud and AI. Management plans $100M–$200M of FY27 investments weighted to go-to-market.
MX:OTEXN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed