Overview

* OpenText Q1 fiscal 2026 revenue beats analyst expectations, growing 1.5% yr/yr

* Company to divest eDOCS solution for $163 mln as part of portfolio reshaping

Outlook

* OpenText did not provide specific financial guidance for future quarters or the full year

Result Drivers

* CLOUD BUSINESS GROWTH - Growth in Content Management cloud business contributed to 19 consecutive quarters of cloud organic growth

* BUSINESS OPTIMIZATION - Co's Business Optimization Plan underway to drive operational efficiencies and support margin targets

* PORTFOLIO SHAPING - Co to divest non-core eDOCS solution as part of strategy to focus on Information Management for AI

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $1.29 $1.27

Revenue bln bln (6

Analysts

)

Q1 $1.07

Annual bln

Recurrin

g

Revenue

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "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$61.59, about 14.9% above its November 4 closing price of C$52.44

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

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(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.)