Open Text Corporation (OTEX) AI Stock Analysis

Open Text Corporation specializes in the development, marketing, and sale of comprehensive information management software and solutions. Its diverse portfolio includes content services for organizational information handling and business network solutions designed to secure data within and outside corporate firewalls. The company delivers cybersecurity tools, including its Carbonite and Webroot products, as well as digital investigation and forensic security offerings. Open Text also provides eDiscovery platforms for forensics and unstructured data analytics, alongside its OpenText Developer Cloud and developer API services that support artificial intelligence and analytics applications.

Revenue increased from $3.43B in FY2022 to $5.25B in FY2026, reflecting a 5-year revenue CAGR of 8.4%. Over this period, gross margin expanded from 60.9% in FY2022 to 73.7% in FY2026, while operating margin rose to 20.6%. FY2026 net income reached $643.0M with diluted EPS of $4.28, up from $435.9M and $3.76 in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 2.9% year-over-year, while quarterly earnings grew 476.1%. Research and development expenses were $647.7M in FY2026, down from $755.9M in FY2025.

As of June 30, 2026, Open Text held $956.0M in cash and short-term investments against $5.97B in total debt, resulting in net debt of $5.02B. The company recorded total assets of $13.11B and shareholders' equity of $4.01B, with a debt-to-equity ratio of 1.49 and a current ratio of 0.81. During FY2026, operating cash flow reached $1.01B and free cash flow stood at $807.5M. The company directed capital toward $199.3M in capital expenditures, $469.3M in share buybacks, and $268.4M in dividends paid.

At a last close of $25.50, Open Text trades at a trailing P/E of 9.9x and a forward P/E of 6.2x, both below the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its enterprise value of $10.62B reflects an EV to EBITDA multiple of 5.8x, compared to the peer median of 16.6x. The stock trades at a price-to-sales multiple of 1.2x versus the peer median of 2.8x. Over the past year, OTEX declined 31.5%, trailing the S&P 500 (SPY) return of 16.8%.

Open Text pays a quarterly dividend with a forward annualized payout of $1.12 per share, representing a dividend yield of 4.39%. The payout ratio is 25.8%, and the company has paid dividends for 14 consecutive years. Over the past five years, the dividend grew at an annualized rate of 8.2%. The last ex-dividend date was September 4, 2026.

Wall Street coverage includes 2 Buy ratings and 10 Hold ratings among 12 analysts, with zero Sell or Strong Sell ratings. The mean price target of $27.95 implies 9.6% upside from the last close of $25.50. For the fiscal year ending June 30, 2027, consensus estimates project revenue of $5.16B and EPS of $3.92, representing an EPS decline of 11.4%. Open Text has beaten EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for November 5, 2026.

This page is an AI-written research summary of Open Text Corporation (OTEX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: OTEX income statement, OTEX balance sheet, OTEX key metrics, OTEX analyst forecast, OTEX chart. See the OTEX stock overview for the latest quote and news.