Open Text Corp (OTEX.O): F4Q26 Recap: Solid In-Quarter Beat yet Softer Initial FY27 Outlook

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06 Aug 2026 08:09:43 ET │ 11 pages

Open Text Corp (OTEX.O)

F4Q26 Recap: Solid In-Quarter Beat yet Softer Initial FY27 Outlook

CITI'S TAKE

OTEX reported a better F4Q26 with a $30.3M revenue beat (2.3% vs.

+0.7% last quarter) driven by License and Cloud upside with Content

Cloud growing 17% y/y (vs. 22% in F3Q), and a $55.1M adj EBITDA beat vs.

cons ($13.0M last quarter). Cloud bookings were up 24% y/y vs. 30% last

quarter. OTEX provided an initial FY27 guide with rev growth at -2.1% to 1.2% and organic growth of 0-1% y/y (vs. cons of -0.4%), EBITDA margin

contraction of -380bps (vs. cons of -30bps to 36.0%), and cloud rev

growth of 2-3% y/y (vs. cons of 5.3%) and core cloud rev growth of 8-10%

y/y. Beyond macro/the deal environment, we are looking for an update on

the business simplification strategy, early initiatives under new CEO

Antoun, assumptions underlying the growth outlook including non-core

assumptions, progress on AI monetization and security cross-sell, and

drivers of the outlook for EBITDA margin compression.

Neutral

Price (05 Aug 26 16:00)

US$25.65

Target price

US$25.00

Expected share price return

-2.5%

Expected dividend yield

4.3%

Expected total return

1.8%

Market Cap

US$6,224M

Steven Enders, CFAAC

George Kurosawa, CFA

Call Details — The call starts at 8am ET / 5am PT // Link to the webcast

available here

Implications — While we note a stronger beat, we could see a downside skew to the

reaction on the below consensus FY27 guide across Cloud rev, total rev, and adj

EBITDA.

EPS (US$)

Q1

Q2

Q3

Q4

FY

FC Cons

VA Cons

2025A

0.93A

1.11A

0.82A

0.97A

3.82A

2026E

1.05A

1.13A

1.01A

1.06E

4.25E

4.24E

4.31E

Previous

1.05A

1.13A

1.01A

1.06E

4.25E

na

2027E

1.12E

1.28E

1.13E

1.24E

4.77E

4.47E

4.56E

Previous

1.12E

1.28E

1.13E

1.24E

4.77E

na

2028E

1.25E

1.41E

1.25E

1.36E

5.27E

5.35E

4.87E

Previous

1.25E

1.41E

1.25E

1.36E

5.27E

na

Source: Company Reports and dataCentral, Citi Research. FC Cons: First Call Consensus. VA Cons: Visible Alpha Consensus.

Click here for Visible Alpha consensus data