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OTEXOpen Text Corporation
$22.99$5.6B
Overview & Tools
OverviewChart Terminal ↗Visualize
Valuation & Forecasts
Valuation ModelsEstimatesDCF Model
Price & Analyst Data
Analyst TargetsPrice History
Financial Statements
Income StatementBalance SheetCash FlowRatios & Margins
Performance
P/E HistoryRevenue HistoryEarnings HistoryDividend HistoryTotal Return
Discovery & Screens
Live BreakoutsStock ScreenerOwnership
OTEX logo

Open Text Corporation

OTEX
NASDAQ · Application Software
$22.99
At close - Sep 22, 4:00 PM EDT - USD
Market Cap$5.58B
P/E8.9x
52W High$39.90
Volume1.29M
OverviewTerminalAnalysisFinancialsValuationEarningsBreakoutsOwnership
VCP Research Verdict2026Q4

Margin Expansion Masks Stagnant Revenue and Debt Load

Open Text's strategic pivot toward higher-margin cloud and support revenue has driven gross margins from 63.0% to 73.7% and operating margins to 20.6%, yet top-line growth remains muted at 3.0% in the latest quarter. The company's acquisition-heavy model, evid...

GrowthMixed
ProfitabilityModerate
ValuationAttractive
TechnicalsWeak
Explore valuation models
MARKET ACTION

OTEX price & volume

Price trend, volume and key moving averages

Launch Terminal
Loading chart...
Decision Checklist4 Core Signals

What matters now

The signals most likely to change the investment case.

01

Earnings momentum

10/12 Beats

EPS beat 10 of last 12 quarters

02

Valuation risk

-79% Peers

P/E is 79% below peer median

03

Market leadership

RS 36 · Lag

Laggard (Underperforming 64% of market)

04

Weak Trend

Below 200DMA

Price < 200DMA

Next CatalystEstimated earnings · Nov 6
01

Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis
Fundamental Trajectory

Revenue growth has been erratic, with a modest 3.0% rebound in 2026Q4, while gross margin expanded from 63.0% to 73.7% and operating margin improved to 20.6%, indicating a favorable mix shift and cost discipline.

Analyst Consensus+23.1% target
Hold(26 analysts)
11 Buy14 Hold1 Sell

The Bull Case

Upside Catalysts

Synergy capture potential

Faster-than-expected synergy capture could drive EPS growth towards 8-10%, with cost synergies being the most sensitive variable.

Financial health review

Deep dive into OpenText's financial health, including fundamental analysis and smart money sentiment, is recommended before investment.

Tech exposure consideration

OpenText offers tech exposure in the Canadian market, though competitors like SAP or Salesforce may present clearer narratives.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return
OTEX-24.95%
S&P 500 (^GSPC)+13.20%
1-Year Return
OTEX-36.16%
S&P 500 (^GSPC)+15.98%
3-Year Return
OTEX-26.51%
S&P 500 (^GSPC)+78.47%
5-Year Return
OTEX-45.28%
S&P 500 (^GSPC)+73.50%
02

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis
Trailing P/E5Y Low
8.9x
Forward P/EExpansion
5.5x
EV/EBITDA20th %ile
2.9x
FCF YieldCash Flow
14.5%

Valuation vs 5-Year History

Multiple Range
Metric
Current
5Y Median
Historical Range
Percentile
P/E
8.9x
17.7x
20th· Low
EV/EBITDA
2.9x
7.8x
20th· Low
Price/FCF
6.9x
11.2x
20th· Low
Current Multiple
5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection
Bear$71.38+210.5%
Base (Fair)$89.65+297.0%
Bull$140.66+511.8%
$71.38 Bear$89.65 Base$140.66 Bull
Current Market Price: $22.99
Trades at a 74.4% discount to Base DCF ($89.65)
Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend
Revenue
$5.25B+1.5% YoY
Net income
$643M+47.5% YoY
Free cash flow
$808M+17.5% YoY
Operating margin
20.6%+0.5 pts YoY
ROIC (TTM)12.8%
Avg ROIC 5Y-
ROE (TTM)16.2%
Piotroski Score9 / 9
Financial Statements →
03

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History
EPS Beat Rate10/12 (83%)
Revenue Beat Rate10/12 (83%)
QuarterEPS (Act vs Est)Revenue (Act vs Est)
Q3 2026Latest
Aug 6, 2026
$1.23+20.6%
vs $1.02
$1.3B+3.0%
vs $1.3B
Q2 2026
May 7, 2026
$1.01+11.7%
vs $0.90
$1.3B+0.6%
vs $1.3B
Q1 2026
Feb 5, 2026
$1.13+8.7%
vs $1.04
$1.3B+1.7%
vs $1.3B
Q4 2025
Nov 5, 2025
$1.05+6.2%
vs $0.99
$1.3B+2.7%
vs $1.3B
Historical baseline: 12 quarters analyzedGAAP / Adjusted
MARKET COVERAGE

Latest News

5 Stories
Defense World·Sep 11, 2026
Bank of New York Mellon Corp Makes New Investment in Open Text Corporation $OTEX

Bank of New York Mellon Corp purchased a new stake in Open Text Corporation (NASDAQ: OTEX) (TSE: OTC) in the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The fund purchased 44,242 shares of the software maker's stock, valued at approximately $980,000. A number of other large investors

GuruFocus·Sep 1, 2026
A Look at Open Text Corp (OTEX) After 4.3% Decline -- GF Value $31.43 vs Price $23.84

On September 01, 2026, Open Text Corp (OTEX) shares fell 4.3% to a current price of $23.84. This decline is part of a broader trend, with the stock trading with

Defense World·Aug 25, 2026
34,471 Shares in Open Text Corporation $OTEX Bought by Callan Family Office LLC

Callan Family Office LLC bought a new position in shares of Open Text Corporation (NASDAQ: OTEX) (TSE: OTC) during the undefined quarter, according to its most recent disclosure with the SEC. The fund bought 34,471 shares of the software maker's stock, valued at approximately $764,000. A number of other institutional investors have also recently

Seeking Alpha·Aug 7, 2026
Open Text Corporation (OTEX) Q4 2026 Earnings Call Transcript

Open Text Corporation (OTEX) Q4 2026 Earnings Call Transcript

Filtered for Open Text CorporationMore Headlines
04

Compare before deciding

Benchmark OTEX against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for Open Text Corporation (OTEX)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
OTEX logoOTEXOpen Text CorporationCurrent
$22.99$5.58B8.911.51%12.26%16.18%4.68%
MSFT logoMSFTMicrosoft Corporation
$498.00$3.7T27.7417.79%40.31%33.22%—
IBM logoIBMInternational Business Machines Corporation
$231.38$217.99B20.717.62%15.52%33.43%—
BOX logoBOXBox, Inc.
$32.87$4.55B55.717.99%9.45%217.31%—
DOCN logoDOCNDigitalOcean Holdings, Inc.
$146.00$17.07B57.9415.48%23.27%54.71%—
MANH logoMANHManhattan Associates, Inc.
$207.09$12.25B57.533.75%18.67%85.23%—

Compare OTEX vs Peers

Open Text Corporation (OTEX) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs MSFT

Most directly comparable listed peer for OTEX.

Scale Benchmark

vs AMZN

Larger-name benchmark to compare OTEX against a more recognizable public peer.

Peer Set

Compare Top 5

vs MSFT, IBM, BOX, DOCN

05

Keep researching

Verify the primary filings, follow material updates, and answer the remaining questions.

OTEX SEC Filings & Documents

Open Text Corporation (OTEX) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

6
Material company update

Aug 6, 2026·SEC

Material company update

Jul 17, 2026·SEC

Material company update

May 11, 2026·SEC

10-K Annual Reports

3
FY 2026

Aug 6, 2026·SEC

FY 2025

Aug 7, 2025·SEC

FY 2024

Aug 1, 2024·SEC

10-Q Quarterly Reports

6
FY 2026

May 7, 2026·SEC

FY 2026

Feb 5, 2026·SEC

FY 2025

Nov 5, 2025·SEC

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OTEX Frequently Asked Questions

Open Text Corporation (OTEX) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is Open Text Corporation's revenue?

Open Text Corporation (OTEX) reported $9.14B in revenue for fiscal year 2026. This represents a 40359% increase from $22.6M in 1997.

How fast is Open Text Corporation growing?

Open Text Corporation (OTEX) grew revenue by 1.5% over the past year. Growth has been modest.

Is OTEX profitable?

Yes, Open Text Corporation (OTEX) is profitable, generating $1.13B in net income for fiscal year 2026 (12.3% net margin).

Dividend & Returns
Does OTEX pay dividends?

Yes, Open Text Corporation (OTEX) pays a dividend with a yield of 4.68%. This makes it attractive for income-focused investors.

What is OTEX's return on equity?

Open Text Corporation (OTEX) has a return on equity (ROE) of 16.2%. This is reasonable for most industries.

What is Open Text Corporation's free cash flow?

Open Text Corporation (OTEX) generated $1.49B in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in OTEX back in 1997?

Total return calculator · dividends reinvested · 29+ years of data

See returns →