10:30 AM EDT, 05/01/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

OpenText reported Q3 FY 25 revenue of $1.25B, slightly missing consensus of $1.254B, while non-GAAP EPS of $0.82 beat estimates by $0.06. Cloud revenue grew 1.9% Y/Y to $463M, while Customer Support and License sales declined 18% and 31% respectively, as customers transition to cloud solutions. The company lowered its FY 25 revenue guidance to $5.10B-$5.17B from $5.17B-$5.27B, citing demand disruptions and slower cloud growth. Operating metrics showed pressure with non-GAAP gross margin contracting 150 bps Y/Y to 75.7% and operating margin falling 90 bps to 28.9%. OTEX expanded its business optimization plan, announcing an additional $200M in restructuring expenses and plans to reduce its workforce by 2,000 employees. We expect these initiatives to generate annual savings of $490M-$550M, with 50% to be realized in FY 26, though near-term revenue growth may remain challenged as the business transformation continues.