Open Text (OTEX)
Market Price (6/22/2026): $20.69 | Market Cap: $5.1 BilSector: Information Technology | Industry: Application Software
Open Text (OTEX)
Market Price (6/22/2026): $20.69Market Cap: $5.1 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 15%, Dividend Yield is 5.2%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 11%, FCF Yield is 16% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 19%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 16% Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -38% Stock buyback supportStock Buyback 3Y Total is 1.2 Bil Low stock price volatilityVol 12M is 36% Megatrend and thematic driversMegatrends include Cloud Computing, and Cybersecurity. Themes include Software as a Service (SaaS), Hybrid Cloud Solutions, Show more. | Weak multi-year price returns2Y Excs Rtn is -60%, 3Y Excs Rtn is -118% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 101% Key risksOTEX key risks include [1] its high debt load from an aggressive acquisition strategy, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 15%, Dividend Yield is 5.2%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 11%, FCF Yield is 16% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 19%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 16% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -38% |
| Stock buyback supportStock Buyback 3Y Total is 1.2 Bil |
| Low stock price volatilityVol 12M is 36% |
| Megatrend and thematic driversMegatrends include Cloud Computing, and Cybersecurity. Themes include Software as a Service (SaaS), Hybrid Cloud Solutions, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -60%, 3Y Excs Rtn is -118% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 101% |
| Key risksOTEX key risks include [1] its high debt load from an aggressive acquisition strategy, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Updated on 6/18/2026
Open Text (OTEX) stock has lost about 15% since 2/28/2026 because of the following key factors:
1. Slowing Enterprise Spending and Evolving AI Competition: Open Text experienced a downturn driven by broader investor concerns over slowing enterprise technology spending and increasing competition from rapidly developing artificial intelligence (AI) technologies. Analysts noted that Open Text's position in the AI ecosystem could lead to changes in software pricing models and shorter contract renewals, contributing to a general bearish sentiment as investors scrutinized the pace of revenue acceleration within software companies.
2. Macroeconomic Headwinds and Rising Cost of Capital: The stock's decline was also influenced by prevailing macroeconomic challenges, including elevated inflation, the prospect of rising interest rates, and geopolitical instabilities such as the Iran war, which impacted oil prices and overall market sentiment. Furthermore, the rising cost of capital, intensified by the aggressive funding requirements of large tech companies for AI infrastructure and increased government borrowing, contributed to upward pressure on long-term interest rates and negatively affected asset valuations.
Show more
Open Text (OTEX) stock has lost about 15% since 2/28/2026 because of the following key factors:
1. Slowing Enterprise Spending and Evolving AI Competition: Open Text experienced a downturn driven by broader investor concerns over slowing enterprise technology spending and increasing competition from rapidly developing artificial intelligence (AI) technologies. Analysts noted that Open Text's position in the AI ecosystem could lead to changes in software pricing models and shorter contract renewals, contributing to a general bearish sentiment as investors scrutinized the pace of revenue acceleration within software companies.
2. Macroeconomic Headwinds and Rising Cost of Capital: The stock's decline was also influenced by prevailing macroeconomic challenges, including elevated inflation, the prospect of rising interest rates, and geopolitical instabilities such as the Iran war, which impacted oil prices and overall market sentiment. Furthermore, the rising cost of capital, intensified by the aggressive funding requirements of large tech companies for AI infrastructure and increased government borrowing, contributed to upward pressure on long-term interest rates and negatively affected asset valuations.
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Updated on 6/18/2026
Open Text (OTEX) stock has lost about 15% since 2/28/2026 because of the following key factors:
1. Slowing Enterprise Spending and Evolving AI Competition: Open Text experienced a downturn driven by broader investor concerns over slowing enterprise technology spending and increasing competition from rapidly developing artificial intelligence (AI) technologies. Analysts noted that Open Text's position in the AI ecosystem could lead to changes in software pricing models and shorter contract renewals, contributing to a general bearish sentiment as investors scrutinized the pace of revenue acceleration within software companies.
2. Macroeconomic Headwinds and Rising Cost of Capital: The stock's decline was also influenced by prevailing macroeconomic challenges, including elevated inflation, the prospect of rising interest rates, and geopolitical instabilities such as the Iran war, which impacted oil prices and overall market sentiment. Furthermore, the rising cost of capital, intensified by the aggressive funding requirements of large tech companies for AI infrastructure and increased government borrowing, contributed to upward pressure on long-term interest rates and negatively affected asset valuations.
3. Concerns Over Organic Growth and Debt Levels: Despite Open Text reporting a record $493 million in cloud revenue for fiscal Q3 2026, a 6.6% year-over-year increase, the company faced criticism regarding its overall organic growth, which some analysts described as "somewhat non-existent at 1-2%". The company's reliance on acquisitions for growth, coupled with its leverage standing at 2.9x net debt/EBITDA, raised concerns among investors about its financial health and long-term profitability.
4. Bearish Analyst Sentiment and Technical Price Weakness: The stock's performance reflected a shift towards a more bearish sentiment among experts, with Open Text's share price falling below key support levels. Technical indicators in early June 2026, such as the Moving Average Convergence Divergence Histogram (MACD) turning negative and the stock trading below its 50-day moving average, signaled a downward trend. The consensus analyst rating for Open Text was "Hold" as of mid-June 2026.
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Open Text (OTEX) stock has lost about 15% since 2/28/2026 because of the following key factors:
1. Slowing Enterprise Spending and Evolving AI Competition: Open Text experienced a downturn driven by broader investor concerns over slowing enterprise technology spending and increasing competition from rapidly developing artificial intelligence (AI) technologies. Analysts noted that Open Text's position in the AI ecosystem could lead to changes in software pricing models and shorter contract renewals, contributing to a general bearish sentiment as investors scrutinized the pace of revenue acceleration within software companies.
2. Macroeconomic Headwinds and Rising Cost of Capital: The stock's decline was also influenced by prevailing macroeconomic challenges, including elevated inflation, the prospect of rising interest rates, and geopolitical instabilities such as the Iran war, which impacted oil prices and overall market sentiment. Furthermore, the rising cost of capital, intensified by the aggressive funding requirements of large tech companies for AI infrastructure and increased government borrowing, contributed to upward pressure on long-term interest rates and negatively affected asset valuations.
3. Concerns Over Organic Growth and Debt Levels: Despite Open Text reporting a record $493 million in cloud revenue for fiscal Q3 2026, a 6.6% year-over-year increase, the company faced criticism regarding its overall organic growth, which some analysts described as "somewhat non-existent at 1-2%". The company's reliance on acquisitions for growth, coupled with its leverage standing at 2.9x net debt/EBITDA, raised concerns among investors about its financial health and long-term profitability.
4. Bearish Analyst Sentiment and Technical Price Weakness: The stock's performance reflected a shift towards a more bearish sentiment among experts, with Open Text's share price falling below key support levels. Technical indicators in early June 2026, such as the Moving Average Convergence Divergence Histogram (MACD) turning negative and the stock trading below its 50-day moving average, signaled a downward trend. The consensus analyst rating for Open Text was "Hold" as of mid-June 2026.
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Stock Movement Drivers
Fundamental Drivers
The -14.6% change in OTEX stock from 2/28/2026 to 6/21/2026 was primarily driven by a -29.0% change in the company's P/E Multiple.| (LTM values as of) | 2282026 | 6212026 | Change |
|---|---|---|---|
| Stock Price ($) | 24.22 | 20.69 | -14.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,180 | 5,208 | 0.5% |
| Net Income Margin (%) | 8.4% | 9.9% | 17.7% |
| P/E Multiple | 14.0 | 9.9 | -29.0% |
| Shares Outstanding (Mil) | 252 | 248 | 1.7% |
| Cumulative Contribution | -14.6% |
Market Drivers
2/28/2026 to 6/21/2026| Return | Correlation | |
|---|---|---|
| OTEX | -14.6% | |
| Market (SPY) | 9.2% | 25.2% |
| Sector (XLK) | 38.1% | 26.7% |
Fundamental Drivers
The -36.6% change in OTEX stock from 11/30/2025 to 6/21/2026 was primarily driven by a -40.2% change in the company's P/E Multiple.| (LTM values as of) | 11302025 | 6212026 | Change |
|---|---|---|---|
| Stock Price ($) | 32.63 | 20.69 | -36.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,188 | 5,208 | 0.4% |
| Net Income Margin (%) | 9.6% | 9.9% | 3.2% |
| P/E Multiple | 16.6 | 9.9 | -40.2% |
| Shares Outstanding (Mil) | 254 | 248 | 2.3% |
| Cumulative Contribution | -36.6% |
Market Drivers
11/30/2025 to 6/21/2026| Return | Correlation | |
|---|---|---|
| OTEX | -36.6% | |
| Market (SPY) | 9.9% | 34.5% |
| Sector (XLK) | 34.1% | 33.9% |
Fundamental Drivers
The -23.3% change in OTEX stock from 5/31/2025 to 6/21/2026 was primarily driven by a -21.0% change in the company's Net Income Margin (%).| (LTM values as of) | 5312025 | 6212026 | Change |
|---|---|---|---|
| Stock Price ($) | 26.98 | 20.69 | -23.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,220 | 5,208 | -0.2% |
| Net Income Margin (%) | 12.6% | 9.9% | -21.0% |
| P/E Multiple | 10.8 | 9.9 | -8.2% |
| Shares Outstanding (Mil) | 263 | 248 | 6.1% |
| Cumulative Contribution | -23.3% |
Market Drivers
5/31/2025 to 6/21/2026| Return | Correlation | |
|---|---|---|
| OTEX | -23.3% | |
| Market (SPY) | 28.1% | 38.5% |
| Sector (XLK) | 66.8% | 35.1% |
Fundamental Drivers
The -44.6% change in OTEX stock from 5/31/2023 to 6/21/2026 was primarily driven by a -70.4% change in the company's P/E Multiple.| (LTM values as of) | 5312023 | 6212026 | Change |
|---|---|---|---|
| Stock Price ($) | 37.33 | 20.69 | -44.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,897 | 5,208 | 33.7% |
| Net Income Margin (%) | 7.7% | 9.9% | 28.2% |
| P/E Multiple | 33.5 | 9.9 | -70.4% |
| Shares Outstanding (Mil) | 270 | 248 | 9.1% |
| Cumulative Contribution | -44.6% |
Market Drivers
5/31/2023 to 6/21/2026| Return | Correlation | |
|---|---|---|
| OTEX | -44.6% | |
| Market (SPY) | 85.7% | 48.3% |
| Sector (XLK) | 137.9% | 45.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| OTEX Return | 6% | -36% | 45% | -30% | 19% | -34% | -46% |
| Peers Return | 32% | -10% | 38% | 9% | -5% | -27% | 25% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 98% |
Monthly Win Rates [3] | |||||||
| OTEX Win Rate | 50% | 50% | 67% | 58% | 67% | 33% | |
| Peers Win Rate | 63% | 43% | 65% | 53% | 40% | 43% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| OTEX Max Drawdown | -17% | -46% | -25% | -36% | -23% | -38% | |
| Peers Max Drawdown | -17% | -33% | -20% | -21% | -32% | -35% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: MSFT, IBM, ADBE, BOX, SPSC. See OTEX Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 6/18/2026 (YTD)
How Low Can It Go
| Event | OTEX | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -15.3% | -18.8% |
| % Gain to Breakeven | 18.1% | 23.1% |
| Time to Breakeven | 31 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -24.7% | -9.5% |
| % Gain to Breakeven | 32.7% | 10.5% |
| Time to Breakeven | 62 days | 24 days |
| 2020 COVID-19 Crash | ||
| % Loss | -38.2% | -33.7% |
| % Gain to Breakeven | 61.8% | 50.9% |
| Time to Breakeven | 303 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -15.0% | -19.2% |
| % Gain to Breakeven | 17.6% | 23.8% |
| Time to Breakeven | 42 days | 105 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -33.7% | -6.8% |
| % Gain to Breakeven | 50.8% | 7.3% |
| Time to Breakeven | 267 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -29.9% | -17.9% |
| % Gain to Breakeven | 42.6% | 21.8% |
| Time to Breakeven | 592 days | 123 days |
In The Past
Open Text's stock fell -15.3% during the 2025 US Tariff Shock. Such a loss loss requires a 18.1% gain to breakeven.
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| Event | OTEX | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -24.7% | -9.5% |
| % Gain to Breakeven | 32.7% | 10.5% |
| Time to Breakeven | 62 days | 24 days |
| 2020 COVID-19 Crash | ||
| % Loss | -38.2% | -33.7% |
| % Gain to Breakeven | 61.8% | 50.9% |
| Time to Breakeven | 303 days | 140 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -33.7% | -6.8% |
| % Gain to Breakeven | 50.8% | 7.3% |
| Time to Breakeven | 267 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -29.9% | -17.9% |
| % Gain to Breakeven | 42.6% | 21.8% |
| Time to Breakeven | 592 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -24.4% | -15.4% |
| % Gain to Breakeven | 32.2% | 18.2% |
| Time to Breakeven | 90 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -28.6% | -53.4% |
| % Gain to Breakeven | 40.1% | 114.4% |
| Time to Breakeven | 91 days | 1085 days |
In The Past
Open Text's stock fell -15.3% during the 2025 US Tariff Shock. Such a loss loss requires a 18.1% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Open Text (OTEX)
Open Text Corporation (OTEX) is a Canadian software company that designs, develops, markets, and sells comprehensive information management software and solutions. Its core mission is to help organizations effectively manage, secure, and leverage their vast amounts of data and digital content. This involves providing solutions for enterprise content services, facilitating secure business network communications for data exchange inside and outside firewalls, and offering robust cybersecurity and data protection solutions to defend against cyber threats and ensure business continuity.
The company's diverse product portfolio includes the OpenText Information Management software platform, digital process automation tools, AI and analytics capabilities, and digital experience platforms. They also offer specialized solutions for digital investigations, forensic security, and cloud services, notably through products like Carbonite and Webroot. Open Text serves a broad global customer base, including large enterprises, mid-market companies, public sector agencies, and small and medium-sized businesses across North America, Europe, the Middle East, Africa, and other international markets. They also have strategic partnerships with leading technology firms such as SAP, Google Cloud, Amazon AWS, and Microsoft, enhancing their ability to deliver integrated solutions.
AI Analysis | Feedback
Here are 1-3 brief analogies for Open Text:
- Open Text is like **Microsoft or SAP for comprehensive enterprise information and content management**, helping organizations govern and automate their vast digital data.
- Open Text is like **Broadcom (Symantec) or Fortinet for enterprise cybersecurity and data protection**, offering solutions for digital investigation, forensics, and business continuity.
AI Analysis | Feedback
Open Text (OTEX) provides a wide range of information management software and services:
- Content Services: Solutions for managing and optimizing an organization's enterprise content lifecycle.
- Business Network: A platform designed for secure and efficient data exchange both within and outside an organization's firewall.
- Information Management Software Platform: The foundational software platform supporting various OpenText solutions for managing digital information.
- Security & Cyber Resilience Solutions: Comprehensive offerings, including Carbonite and Webroot products, to defend against cyber threats, ensure business continuity, and provide digital investigation capabilities.
- Discovery Platform: A specialized platform offering forensics and unstructured data analytics for legal, compliance, and investigative purposes.
- Developer Cloud & API Services: A cloud environment and key API services empowering developers to build and integrate applications with OpenText technologies.
- AI and Analytics: Solutions leveraging artificial intelligence and machine learning to derive insights from structured and unstructured data.
- Digital Process Automation Solutions: Tools and platforms that enable organizations to streamline and transform business processes through digital automation.
- Digital Experience Platform: A platform for creating, managing, and delivering engaging digital experiences for customers across various channels.
- Customer Support Programs: Services providing access to software upgrades, a knowledge base, and technical assistance for OpenText products.
- Consulting and Learning Services: Professional services for the implementation, training, and integration of OpenText's licensed product offerings.
- Cloud Services: Hosting and management of OpenText software and solutions in the cloud.
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Major Customers of Open Text Corporation (OTEX)
Open Text Corporation primarily sells its information management software and solutions to other companies and organizations. Based on the provided background, the company has established strategic partnerships with a number of large corporations, which are significant entities that utilize Open Text's products or facilitate their adoption in the market, effectively making them major customers or channels to major customers. The following companies are identified as strategic partners and represent major customer relationships:- SAP SE (NYSE: SAP)
- Google Cloud (part of Alphabet Inc., NASDAQ: GOOGL)
- Amazon AWS (part of Amazon.com, Inc., NASDAQ: AMZN)
- Microsoft Corporation (NASDAQ: MSFT)
- Oracle Corporation (NYSE: ORCL)
- Salesforce.com Corporation (NYSE: CRM)
- Accenture plc (NYSE: ACN)
- ATOS (Euronext Paris: ATO)
- Capgemini Technology Services SAS (Euronext Paris: CAP)
- Cognizant Technology Solutions U.S. Corp. (NASDAQ: CTSH)
- Deloitte Consulting LLP (Private company)
- Tata Consultancy Services (NSE: TCS)
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- Alphabet Inc. (for Google Cloud) (NASDAQ: GOOGL)
- Amazon.com Inc. (for Amazon AWS) (NASDAQ: AMZN)
- Microsoft Corporation (NASDAQ: MSFT)
- SAP SE (NYSE: SAP)
- Oracle Corporation (NYSE: ORCL)
AI Analysis | Feedback
Open Text Corporation has recently undergone significant leadership changes. As of March 15, 2026, James McGourlay serves as the Interim Chief Executive Officer, with Ayman Antoun appointed to take over as CEO effective April 20, 2026. Cosmin Balota is the Interim Chief Financial Officer. The management team also includes other key executives responsible for various aspects of the company's operations.
Here is an overview of up to five members of Open Text's management team:
James McGourlay, Interim Chief Executive Officer
James McGourlay was appointed as Interim Chief Executive Officer of OpenText on August 11, 2025. He has been with OpenText for over 25 years, serving in various senior roles across sales, customer operations, IT, technical support, product support, and special projects.
Cosmin Balota, Interim CFO & Chief Accounting Officer
Cosmin Balota was appointed as Interim CFO & Chief Accounting Officer of OpenText on August 11, 2025. Further detailed background information, including previous companies managed, involvement in company sales to acquirers, or a pattern of managing private equity-backed companies, was not readily available in the provided search results.
Todd Cione, President, Worldwide Sales
Todd Cione became President of OpenText Worldwide Sales on April 8, 2024, overseeing global go-to-market strategy, sales, and revenue growth. He brings over 30 years of global experience in sales, alliance partnerships, marketing, customer success, and operations within large multinational technology organizations. Prior to OpenText, Mr. Cione served as Chief Revenue Officer (CRO) for Teradata. His career also includes leadership positions such as Head of U.S. Enterprise Accounts at Apple, Senior Vice President of Oracle Digital North America Applications, and Chief Revenue Officer of Rackspace. He spent 15 years at Microsoft, where he contributed significantly to the company's cloud transition and the launch of Azure and Office 365 in the U.S. and Asian markets.
Paul Duggan, President and Chief Customer Officer
Paul Duggan was promoted to President and Chief Customer Officer on April 8, 2024. In this role, he leads initiatives focused on customer success and customer transformations, including support, recurring revenues, and professional services. Further detailed background information, including previous companies managed, involvement in company sales to acquirers, or a pattern of managing private equity-backed companies, was not readily available in the provided search results.
Savinay Berry, Chief Technology Officer
Savinay Berry was named Chief Technology Officer, effective August 11, 2025. Before this appointment, he served as Executive Vice President and Chief Product Officer at OpenText. Mr. Berry possesses over 20 years of leadership experience in product and engineering for global software and cloud enterprises. Prior to joining OpenText, he was Executive Vice President, Product and Engineering at Vonage, a company that was acquired by Ericsson in 2022. His experience also includes various product and engineering roles at Dell EMC and Empowered Inc., which was acquired by Qualcomm in 2014.
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The key risks to Open Text's business (OTEX) are:
1. Intense Market Competition and Technological Disruption
Open Text operates in a highly competitive market for information management software and solutions, facing significant challenges from major players like Microsoft, SAP, Salesforce, IBM, and specialized AI startups, as well as hyperscale cloud providers. The rapid evolution of technology, particularly in artificial intelligence (AI), presents both opportunities and risks. Open Text must continuously innovate and differentiate its offerings, especially its AI-driven and cloud solutions, to maintain its market position and achieve growth.2. Risks Associated with Acquisitions and Financial Leverage
Open Text has historically relied on acquisitions for growth, such as the acquisition of Micro Focus. The complexity of integrating these acquired businesses, realizing expected synergies, and managing a broad portfolio built through different acquisitions poses significant operational and financial risks. Furthermore, the company carries elevated net debt, which raises concerns about capital allocation and balance sheet risk. The success of its business optimization plans, which include workforce adjustments, also depends on careful management to avoid disruptions.3. Revenue Volatility and Challenges in Organic Growth
Open Text has experienced demand volatility and, in recent periods, has seen declines in year-over-year quarterly revenue growth. The company has struggled to generate significant organic growth from its core platforms, often relying on acquisitions to expand its total addressable market. Analysts project organic growth rates below consensus, indicating potential ongoing revenue pressures that could hinder long-term profitability.AI Analysis | Feedback
The rapid emergence and widespread adoption of Generative AI, which could fundamentally transform how organizations create, manage, search, analyze, and interact with information and content, potentially diminishing the need for or significantly altering traditional information management, content services, and digital experience platforms.
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Open Text (OTEX) operates in several significant addressable markets for its diverse product and service offerings.
Content Services and Information Management Software
- The global Enterprise Information Management (EIM) market is a substantial addressable market for Open Text, with estimates valuing it over $250 billion. Another projection estimates the global EIM solutions market size at approximately US$80.6 billion in 2026, expected to reach US$208.3 billion by 2033. North America dominates this market, while Asia Pacific is the fastest-growing region.
- More specifically, the global content services platform market was valued at US$62.7 billion in 2025 and is anticipated to reach US$165.8 billion by 2032. North America held a 33.4% share of this market in 2024. Other sources indicate the global content services platforms market was valued at USD 72.45 billion in 2024, projected to grow to USD 282.02 billion by 2033.
Business Network
- While specific overall market size for "business network solutions" as a standalone category was not explicitly found in a single figure, Open Text's Business Network solutions are a key product area, representing approximately 10% of its fiscal year 2024 revenue. Open Text's Business Network facilitates 26 billion transactions worldwide for over 1 million trading partners and 33,000 customers in 130 countries.
Security and Protection Solutions
- The global cybersecurity market, which includes Open Text's security and protection solutions, was valued at approximately USD 181 billion in 2023 and is projected to grow to USD 351.92 billion by 2030. In 2025, the global cybersecurity market size was estimated at USD 271.88 billion and is projected to reach USD 663.24 billion by 2033. North America is a major region in this market, accounting for a 39.2% revenue share in 2025.
Digital Process Automation Solutions
- The global Digital Process Automation (DPA) market was valued at USD 14.04 billion in 2024 and is projected to reach USD 36.01 billion by 2032. Another report indicates a market size of USD 15.15 billion in 2024, expected to grow to USD 43.39 billion by 2033. North America is identified as the largest market for Digital Process Automation.
AI and Analytics
- The global AI in data analytics market was estimated at USD 31.22 billion in 2025 and is projected to reach approximately USD 310.97 billion by 2034. North America held the largest market share, with 41% in 2024. The broader AI in data analytics market is expected to be worth around USD 236.1 billion by 2033, growing from USD 18.5 billion in 2023. The generative AI in analytics market specifically was valued at $1.3 billion in 2024 and is forecast to reach $4.98 billion in 2029.
Digital Experience Platform
- The global digital experience platform (DXP) market was valued at $11.2 billion in 2023 and is projected to reach $41.7 billion by 2032. Another analysis estimates the global DXP market size at USD 5.01 billion in 2025, growing to USD 15.35 billion by 2034. North America held the largest share of this market, with 40.89% in 2025. Further projections indicate the global digital experience platform market is expected to reach USD 15.2 billion in 2026 and expand to USD 28.7 billion by 2036.
Cloud Services
- The global cloud services market was valued at USD 618.04 billion in 2024 and is expected to exceed USD 2,726.94 billion by 2034. The US cloud services market alone is projected to be valued at USD 210.8 billion in 2024 and grow to USD 747.9 billion by 2033. For cloud infrastructure services specifically, the global market size was USD 158.89 billion in 2025 and is projected to reach USD 493.41 billion by 2034. North America dominated the global cloud infrastructure services market with a 39.90% share in 2025. The global cloud managed services market, a component of cloud services, was valued at USD 134.44 billion in 2024 and is projected to reach USD 305.16 billion by 2030. North America held over 44% of the cloud managed services industry in 2024.
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Open Text (OTEX) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:
- Acceleration of Cloud Revenue Growth and Cloud Adoption: OpenText is actively pursuing a cloud-first strategy, consistently achieving organic cloud growth for numerous consecutive quarters. The company aims for 3% to 4% cloud revenue growth in fiscal 2026 and targets 7% to 9% organic cloud growth by fiscal 2027. This growth is supported by efforts to convert its customer base to its next-generation cloud environment.
- Leveraging Artificial Intelligence (AI) and New AI-driven Platforms: OpenText is positioning itself at the forefront of "Information Management for AI." The new AI-driven Titanium X platform is a significant driver for cloud bookings growth. The company emphasizes utilizing its extensive data connectors and AI solutions to provide insights, security, and compliance for its customers' information and sensitive data.
- Strategic Portfolio Optimization and Focus on Core Enterprise Information Management (EIM) Areas: OpenText is strategically reshaping its business by divesting non-core assets to concentrate on faster-growing, core businesses. These core areas include Content, Business Network, IT Operations Management (ITOM), and Enterprise Cybersecurity. This streamlined focus is intended to pivot the company toward higher growth within its key information management segments.
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Share Repurchases
- Open Text increased its Fiscal 2026 share repurchase program to US$500 million, authorized to purchase up to 24,906,456 common shares. As of January 31, 2026, approximately US$190 million had been purchased.
- For Fiscal 2025, Open Text increased its share repurchase program to US$450 million, and as of March 13, 2025, approximately US$258 million had been utilized to repurchase and cancel about 8.9 million common shares.
- Over the trailing twelve months as of December 2025, the net dollar decrease in stock outstanding was valued at $504.8 million, influenced by both share repurchases and divestitures.
Share Issuance
- No significant share issuances by Open Text were identified over the last 3-5 years.
Inbound Investments
- No large investments made in Open Text by third-party strategic partners or private equity firms were identified over the last 3-5 years.
Outbound Investments
- In August 2022, OpenText acquired Micro Focus for an enterprise value of approximately $6.0 billion, a significant deal to expand its capabilities in AI & Analytics, DevOps, and IT Operations Management.
- In May 2024, OpenText divested its Application Modernization and Connectivity (AMC) business for $2.275 billion (CAD $3.050 billion) in cash, with proceeds used to reduce debt and focus on core cloud, security, and AI strategy.
- OpenText also strategically divested its Vertica analytics database business to Rocket Software for $150 million (agreement announced February 2026) and completed the sale of its eDOCS business unit to NetDocuments for $163 million in January 2026, both with proceeds intended for debt reduction and portfolio focus.
Capital Expenditures
- Capital expenditures were approximately $144 million for Fiscal Year 2025 and $160 million for Fiscal Year 2024.
- For Fiscal Year 2023, capital expenditures were $123.8 million, increasing from $93.11 million in Fiscal Year 2022 and $63.68 million in Fiscal Year 2021.
- Open Text focuses its capital investments on driving growth in AI, Cloud, and security offerings.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 124.14 |
| Mkt Cap | 41.8 |
| Rev LTM | 15,203 |
| Op Inc LTM | 5,114 |
| FCF LTM | 5,545 |
| FCF 3Y Avg | 4,726 |
| CFO LTM | 5,730 |
| CFO 3Y Avg | 4,902 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 10.6% |
| Rev Chg 3Y Avg | 12.1% |
| Rev Chg Q | 10.1% |
| QoQ Delta Rev Chg LTM | 2.3% |
| Op Inc Chg LTM | 19.8% |
| Op Inc Chg 3Y Avg | 19.5% |
| Op Mgn LTM | 20.3% |
| Op Mgn 3Y Avg | 18.1% |
| QoQ Delta Op Mgn LTM | 0.2% |
| CFO/Rev LTM | 28.1% |
| CFO/Rev 3Y Avg | 27.8% |
| FCF/Rev LTM | 22.4% |
| FCF/Rev 3Y Avg | 24.0% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 41.8 |
| P/S | 3.0 |
| P/Op Inc | 17.5 |
| P/EBIT | 17.4 |
| P/E | 21.8 |
| P/CFO | 9.8 |
| Total Yield | 6.3% |
| Dividend Yield | 0.5% |
| FCF Yield 3Y Avg | 6.1% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -6.7% |
| 3M Rtn | -3.8% |
| 6M Rtn | -29.1% |
| 12M Rtn | -25.2% |
| 3Y Rtn | -28.7% |
| 1M Excs Rtn | -7.8% |
| 3M Excs Rtn | -18.4% |
| 6M Excs Rtn | -38.5% |
| 12M Excs Rtn | -52.7% |
| 3Y Excs Rtn | -102.9% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Design, development, marketing and sale of Information Management software and solutions | 5,168 | 5,770 | 4,485 | 3,494 | 3,386 |
| Total | 5,168 | 5,770 | 4,485 | 3,494 | 3,386 |
| $ Mil | 2025 | 2024 |
|---|---|---|
| Design, development, marketing and sale of Information Management software and solutions | 436 | 465 |
| Total | 436 | 465 |
Price Behavior
Price Behavior
| Market Price | $20.69 | |
| Market Cap ($ Bil) | 5.1 | |
| First Trading Date | 01/24/1996 | |
| Distance from 52W High | -46.3% | |
| 50 Days | 200 Days | |
| DMA Price | $22.68 | $28.57 |
| DMA Trend | down | indeterminate |
| Distance from DMA | -8.8% | -27.6% |
| 3M | 1YR | |
| Volatility | 40.8% | 36.6% |
| Downside Capture | 158.52 | 181.44 |
| Upside Capture | 58.87 | 101.94 |
| Correlation (SPY) | 27.8% | 38.3% |
OTEX Betas & Captures as of 5/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.06 | 0.29 | 0.55 | 1.05 | 1.15 | 1.02 |
| Up Beta | -1.44 | -0.40 | 0.12 | 0.93 | 0.74 | 0.90 |
| Down Beta | 0.79 | 0.85 | 0.04 | 0.49 | 0.86 | 0.80 |
| Up Capture | 53% | 55% | 61% | 66% | 112% | 89% |
| Bmk +ve Days | 13 | 28 | 36 | 67 | 141 | 432 |
| Stock +ve Days | 11 | 23 | 34 | 62 | 134 | 398 |
| Down Capture | -28% | 96% | 116% | 170% | 147% | 109% |
| Bmk -ve Days | 7 | 13 | 27 | 57 | 109 | 318 |
| Stock -ve Days | 9 | 18 | 29 | 62 | 116 | 350 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with OTEX | |
|---|---|---|---|---|
| OTEX | -24.0% | 36.4% | -0.69 | - |
| Sector ETF (XLK) | 59.9% | 23.1% | 1.96 | 34.6% |
| Equity (SPY) | 26.5% | 12.4% | 1.61 | 38.1% |
| Gold (GLD) | 24.2% | 27.5% | 0.77 | 7.7% |
| Commodities (DBC) | 19.8% | 18.8% | 0.83 | 0.2% |
| Real Estate (VNQ) | 11.0% | 13.7% | 0.52 | 17.5% |
| Bitcoin (BTCUSD) | -40.0% | 42.4% | -1.08 | 29.1% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with OTEX | |
|---|---|---|---|---|
| OTEX | -13.5% | 31.3% | -0.42 | - |
| Sector ETF (XLK) | 22.9% | 25.3% | 0.80 | 54.4% |
| Equity (SPY) | 13.5% | 17.1% | 0.62 | 56.9% |
| Gold (GLD) | 17.1% | 18.3% | 0.76 | 11.4% |
| Commodities (DBC) | 7.5% | 19.4% | 0.29 | 10.9% |
| Real Estate (VNQ) | 1.9% | 18.9% | 0.00 | 42.4% |
| Bitcoin (BTCUSD) | 11.0% | 54.2% | 0.40 | 27.3% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with OTEX | |
|---|---|---|---|---|
| OTEX | -1.5% | 28.6% | -0.01 | - |
| Sector ETF (XLK) | 25.4% | 24.7% | 0.93 | 61.6% |
| Equity (SPY) | 15.3% | 18.0% | 0.73 | 62.9% |
| Gold (GLD) | 12.3% | 16.1% | 0.63 | 9.5% |
| Commodities (DBC) | 5.9% | 18.0% | 0.26 | 19.7% |
| Real Estate (VNQ) | 5.3% | 20.7% | 0.22 | 47.0% |
| Bitcoin (BTCUSD) | 60.0% | 66.8% | 1.00 | 17.9% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/10/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/7/2026 | 4.3% | -5.5% | -3.8% |
| 2/5/2026 | 10.0% | 4.1% | 13.6% |
| 11/5/2025 | -5.4% | -8.4% | -10.8% |
| 8/7/2025 | 9.8% | 10.3% | 21.1% |
| 4/30/2025 | -4.6% | -0.8% | 4.5% |
| 2/6/2025 | -5.7% | -2.7% | -11.1% |
| 10/31/2024 | -11.2% | -13.5% | -9.1% |
| 8/1/2024 | -6.6% | -1.5% | 5.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 11 | 12 |
| # Negative | 12 | 13 | 12 |
| Median Positive | 4.3% | 4.5% | 6.2% |
| Median Negative | -5.3% | -5.5% | -9.3% |
| Max Positive | 13.3% | 10.3% | 21.1% |
| Max Negative | -14.7% | -15.1% | -24.0% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/7/2026 | 4.3% | -5.5% | -3.8% |
| 2/5/2026 | 10.0% | 4.1% | 13.6% |
| 11/5/2025 | -5.4% | -8.4% | -10.8% |
| 8/7/2025 | 9.8% | 10.3% | 21.1% |
| 4/30/2025 | -4.6% | -0.8% | 4.5% |
| 2/6/2025 | -5.7% | -2.7% | -11.1% |
| 10/31/2024 | -11.2% | -13.5% | -9.1% |
| 8/1/2024 | -6.6% | -1.5% | 5.2% |
| 5/2/2024 | -14.7% | -15.1% | -17.8% |
| 2/1/2024 | -2.3% | -6.8% | -9.7% |
| 11/2/2023 | 5.3% | 4.5% | 17.6% |
| 8/3/2023 | -9.1% | -7.3% | 0.6% |
| 5/4/2023 | 13.3% | 10.1% | 17.2% |
| 2/2/2023 | 4.3% | 8.1% | 6.8% |
| 11/3/2022 | -3.4% | 4.9% | 2.4% |
| 8/5/2022 | 0.4% | 1.9% | -24.0% |
| 5/4/2022 | -5.3% | -12.2% | -0.1% |
| 2/3/2022 | -4.4% | -3.0% | -9.5% |
| 11/4/2021 | 1.5% | 0.8% | -6.1% |
| 8/5/2021 | 0.9% | 1.9% | 5.5% |
| 5/6/2021 | 3.1% | -2.7% | 5.4% |
| 2/4/2021 | 2.4% | 1.4% | -4.9% |
| 11/5/2020 | 5.7% | 5.6% | 17.9% |
| 8/6/2020 | -1.0% | -5.2% | -5.4% |
| SUMMARY STATS | |||
| # Positive | 12 | 11 | 12 |
| # Negative | 12 | 13 | 12 |
| Median Positive | 4.3% | 4.5% | 6.2% |
| Median Negative | -5.3% | -5.5% | -9.3% |
| Max Positive | 13.3% | 10.3% | 21.1% |
| Max Negative | -14.7% | -15.1% | -24.0% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/07/2026 | 10-Q |
| 12/31/2025 | 02/05/2026 | 10-Q |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/07/2025 | 10-K |
| 03/31/2025 | 04/30/2025 | 10-Q |
| 12/31/2024 | 02/06/2025 | 10-Q |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/01/2024 | 10-K |
| 03/31/2024 | 05/02/2024 | 10-Q |
| 12/31/2023 | 02/01/2024 | 10-Q |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-K |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 02/02/2023 | 10-Q |
| 09/30/2022 | 11/03/2022 | 10-Q |
| 06/30/2022 | 08/05/2022 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/07/2026 | 10-Q |
| 12/31/2025 | 02/05/2026 | 10-Q |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/07/2025 | 10-K |
| 03/31/2025 | 04/30/2025 | 10-Q |
| 12/31/2024 | 02/06/2025 | 10-Q |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/01/2024 | 10-K |
| 03/31/2024 | 05/02/2024 | 10-Q |
| 12/31/2023 | 02/01/2024 | 10-Q |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-K |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 02/02/2023 | 10-Q |
| 09/30/2022 | 11/03/2022 | 10-Q |
| 06/30/2022 | 08/05/2022 | 10-K |
| 03/31/2022 | 05/04/2022 | 10-Q |
| 12/31/2021 | 02/03/2022 | 10-Q |
| 09/30/2021 | 11/04/2021 | 10-Q |
| 06/30/2021 | 08/05/2021 | 10-K |
| 03/31/2021 | 05/06/2021 | 10-Q |
| 12/31/2020 | 02/04/2021 | 10-Q |
| 09/30/2020 | 11/05/2020 | 10-Q |
| 06/30/2020 | 08/06/2020 | 10-K |
| 03/31/2020 | 04/30/2020 | 10-Q |
| 12/31/2019 | 01/30/2020 | 10-Q |
| 09/30/2019 | 10/31/2019 | 10-Q |
| 06/30/2019 | 08/01/2019 | 10-K |
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Application Software Resources |
| Capterra |
| Software Advice |
| InfoWorld |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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