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Earnings

OpenText Reports Second Quarter Fiscal Year 2026 Financial Results

By The Northwire Desk — AI Analysis Feb 05, 2026 · 16:01 OTEX · 32.11 OPEN TEXT CORPORATION
OTEX · Price

Executive Summary

  • OpenText reported Q2 FY 2026 total revenues of $1.327 B, a modest ‑0.6% YoY decline, but highlighted 20 consecutive quarters of cloud organic growth (+3.4% YoY to $478 M).
  • Adjusted EBITDA reached $491 M, delivering a 37.0% margin and generating free cash flow of $279 M.
  • The company announced the appointment of Ayman Antoun as CEO (effective 20 Apr 2026), completed divestitures of eDOCS ($163 M) and Vertica ($150 M), and declared a cash dividend of $0.275 per share.

Key Details

  • Revenue Breakdown (Q2 FY 2026):
  • Cloud services & subscriptions: $478 M (+3.4% YoY)
  • Customer support: $582 M (‑1.5% YoY)
  • License: $184 M (‑2.5% YoY)

  • Professional services & other: $83 M (‑11.0% YoY)

  • Profitability:

  • GAAP net income: $168 M (‑26.9% YoY) → diluted EPS $0.66 (‑24.1% YoY)
  • Non‑GAAP net income: $286 M (‑2.4% YoY) → diluted EPS $1.13 (+1.8% YoY)

  • GAAP operating margin: 12.7%

  • Cash Flow:

  • Operating cash flow: $319 M (‑8.4% YoY)

  • Free cash flow: $279 M (‑8.9% YoY)

  • Capital Returns (Q2): $119 M total → $69 M dividends, $50 M share repurchases.

  • Leadership Change: Interim CEO James McGourlay announced the appointment of Ayman Antoun as permanent CEO, effective 20 Apr 2026.

  • Divestitures Completed in Q2:

  • eDOCS sold for $163 M (non‑core product).

  • Vertica sold for $150 M (analytics portfolio).

  • Guidance & Outlook: No explicit forward guidance provided; management emphasized continued focus on cloud growth, AI‑enabled enterprise information management, and a “leaner” operating model.

  • Conference Call: Earnings call webcast scheduled for 5:00 p.m. ET, 5 Feb 2026 (link in investor relations portal).

Notable Quotes

“We had an excellent quarter, led by 18% revenue growth in our Content Management cloud business,” – James McGourlay, Interim CEO.
“Welcoming Ayman Antoun as our CEO marks a pivotal milestone… he brings deep enterprise technology expertise.” – P. Thomas Jenkins, Executive Chair & Chief Strategy Officer.

Read the original news release →

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