OpenText posts solid Q3 results, advances cloud strategy
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Open Text ( (TSE:OTEX) ) has issued an update.
On May 7, 2026, OpenText reported third-quarter fiscal 2026 results for the period ended March 31, 2026, posting total revenue of $1.283 billion, up 2.2% year over year, driven by 6.6% growth in cloud revenue to $493 million and 21 consecutive quarters of organic cloud expansion. Net income rose sharply, with GAAP earnings reaching $173 million and adjusted EBITDA margin at 34.1%, while annual recurring revenue climbed 2.7% and free cash flow totaled $305 million.
The company returned $313 million to shareholders in the quarter through $66 million in dividends and $247 million in share repurchases, cutting its share count by 6.7% year over year to 242.2 million. Governance and leadership also shifted as Ayman Antoun officially became CEO on April 20, 2026, signaling a continued focus on disciplined execution, cloud growth and capital allocation aimed at sustaining margins and supporting long-term shareholder value.
The most recent analyst rating on (TSE:OTEX) stock is a Hold with a C$28.00 price target. To see the full list of analyst forecasts on Open Text stock, see the TSE:OTEX Stock Forecast page.
Spark’s Take on OTEX Stock
According to Spark, TipRanks’ AI Analyst, OTEX is a Neutral.
The score is driven primarily by solid profitability and cash generation but weighed down by negative recent revenue growth and meaningful leverage. Technicals further pressure the score due to a clear downtrend (price below key moving averages and negative MACD). Partially offsetting these are reasonable valuation with a strong dividend and an earnings call that showed improving cloud indicators and margin/cash progress, albeit with conservative growth guidance and divestiture-related revenue impacts.
To see Spark’s full report on OTEX stock, click here.
More about Open Text
OpenText Corporation is an enterprise software company that provides cloud services, subscriptions and customer support for managing and securing corporate data. The company focuses on helping large enterprises move to the cloud while meeting data regulation requirements, positioning itself as a key player in enabling data management for enterprise AI and complex digital workflows.
Average Trading Volume: 1,524,137
Technical Sentiment Signal: Sell
Current Market Cap: C$7.87B
For detailed information about OTEX stock, go to TipRanks’ Stock Analysis page.
