Overview

* OpenText Q4 revenue of $1.311 bln beats analyst expectations, per LSEG data

* Cloud revenue for Q4 grows 2.1% yr/yr, marking 18 consecutive qtrs of growth

* Co announces 5% dividend increase and $300 mln share repurchase program

Outlook

* OpenText expects 3% to 4% cloud revenue growth in fiscal 2026

* Company anticipates 1% to 2% total revenue growth in fiscal 2026

* OpenText sees growth opportunities in AI, cloud, and security

Result Drivers

* AI PLATFORM - Demand for AI-driven Titanium X platform boosts cloud bookings by 32%, per CEO Mark J. Barrenechea

* DIVESTITURE IMPACT - AMC divestiture affects total revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Beat $1.31 $1.29

Revenue bln bln (5

Analysts

)

Q4 EPS $0.11

Q4 Net $29 mln

Income

Q4 $444 mln

Adjusted

EBITDA

Q4 $1.05

Annual bln

Recurrin

g

Revenue

Q4 Cloud $475 mln

Revenue

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy."

* Wall Street's median 12-month price target for Open Text Corp ( OTEX ) is C$55.09, about 27.8% above its August 6 closing price of C$39.78

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)