TipRanks
Open Text Corp. (OTEX)
NASDAQ:OTEX

Open Text (OTEX) Price & Analysis

741 Followers

OTEX Stock Chart & Stats

$24.36
$1.44(6.41%)
At close: 4:00 PM EDT
$24.36
$1.44(6.41%)

Bulls Say, Bears Say

Bulls Say
Recurring Enterprise Software ModelOpenText’s recurring subscription, support, and maintenance revenue model supports visibility and customer continuity. Its enterprise focus and integration into organizational workflows can encourage renewals and expansion, creating a durable base for cash generation over the next several quarters.
Cloud And AI GrowthSustained organic cloud growth combined with accelerating Aviator adoption indicates that OpenText is adding higher-value capabilities to its information-management portfolio. Larger AI-associated deals could improve cross-selling, customer relevance, and long-term growth potential.
Improving Profitability And Cash GenerationStrong margins and substantial free cash flow provide internal funding for product development, sales investment, dividends, and debt reduction. This profitability base strengthens financial resilience and gives management flexibility to pursue cloud and AI growth without relying entirely on external capital.
Bears Say
Elevated LeverageAlthough OpenText is reducing debt, net leverage remains meaningful relative to operating performance. This can constrain capital allocation, increase sensitivity to earnings volatility, and leave less flexibility to fund growth initiatives or absorb weaker demand while obligations remain elevated.
Muted Revenue GrowthThe near-term revenue outlook points to a mature and uneven growth profile rather than broad-based acceleration. Flat to declining reported sales can limit operating leverage, make margin improvement more dependent on execution, and increase reliance on cloud and AI initiatives to restore momentum.
Cloud Retention PressureA declining cloud net renewal rate suggests pressure on retention or expansion within the installed base, which can weaken the recurring revenue engine. If sustained, lower renewals may raise customer-acquisition needs and reduce the compounding benefit expected from cloud subscription growth.

Open Text News

OTEX FAQ

What was Open Text Corp.’s price range in the past 12 months?
Open Text Corp. lowest stock price was $19.77 and its highest was $39.81 in the past 12 months.
    What is Open Text Corp.’s market cap?
    Open Text Corp.’s market cap is $6.77B.
      When is Open Text Corp.’s upcoming earnings report date?
      Open Text Corp.’s upcoming earnings report date is Nov 05, 2026 which is in 12 days.
        How were Open Text Corp.’s earnings last quarter?
        Open Text Corp. released its earnings results on Aug 06, 2026. The company reported $1.232 earnings per share for the quarter, beating the consensus estimate of $1.037 by $0.195.
          Is Open Text Corp. overvalued?
          According to Wall Street analysts Open Text Corp.’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Open Text Corp. pay dividends?
            Open Text Corp. pays a Quarterly dividend of $0.28 which represents an annual dividend yield of 3.95%. See more information on Open Text Corp. dividends here
              What is Open Text Corp.’s EPS estimate?
              Open Text Corp.’s EPS estimate is 0.93.
                How many shares outstanding does Open Text Corp. have?
                Open Text Corp. has 242,126,740 shares outstanding.
                  What happened to Open Text Corp.’s price movement after its last earnings report?
                  Open Text Corp. reported an EPS of $1.232 in its last earnings report, beating expectations of $1.037. Following the earnings report the stock price went down -2.806%.
                    Which hedge fund is a major shareholder of Open Text Corp.?
                    Currently, no hedge funds are holding shares in OTEX
                    What is the TipRanks Smart Score and how is it calculated?
                    Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                      Company Description

                      Open Text Corp.

                      Open Text Corporation specializes in the creation, development, promotion, and distribution of sophisticated information management software and solutions. Their extensive portfolio includes vital content services; a robust business network facilitating secure data exchange both internally and externally; comprehensive security and protection offerings safeguarding against cyber threats, ensuring operational continuity, and enabling rapid breach response; and specialized tools for digital investigation and forensic security, including OpenText's own cyber resilience solutions, as well as Carbonite and Webroot products. The company's core OpenText Information Management software platform forms the foundation for many of its offerings, which further encompass an eDiscovery platform utilizing forensics and unstructured data analytics, the OpenText Developer Cloud, key developer API services, and AI and analytics capabilities for structured and unstructured data. Additionally, Open Text provides digital process automation solutions, enabling organizations to transform into data-driven digital businesses, and the OpenText Digital Experience platform. Beyond its product suite, the company delivers comprehensive customer support programs, offering access to software upgrades, a knowledge base, discussion forums, product information, and an online trouble ticket system. They also provide consulting and learning services for the implementation, training, and integration of their licensed products, alongside various cloud services. Open Text serves a diverse global clientele, ranging from large enterprises, mid-market companies, and public sector agencies to small and medium-sized businesses and individual consumers, with a presence across Canada, the United States, the United Kingdom, Germany, the broader European region, the Middle East, Africa, and other international markets. The company maintains strategic alliances with industry leaders such as SAP SE, Google Cloud, Amazon AWS, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, Accenture plc, ATOS, Capgemini Technology Services SAS, Cognizant Technology Solutions U.S. Corp., Deloitte Consulting LLP, and Tata Consultancy Services. Open Text Corporation was established in Waterloo, Canada, in 1991.

                      Open Text (OTEX) Earnings & Revenues

                      OTEX Company Deck

                      OTEX Earnings Call

                      Q4 2026
                      0:00 / 0:00
                      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.View all OTEX earnings summaries

                      OTEX Stock 12 Month Forecast

                      Average Price Target

                      $28.36
                      ▲(16.41% Upside)
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2,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 11, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":23.696,"date":1772323200000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 2,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 9, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":22.026,"date":1775001600000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 1,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 9, \t&nbsp;</span>\n    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                      Ownership Overview

                      0.21%4.67%1.85%75.83%
                      1.85% Other Institutional Investors
                      75.83% Public Companies and
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