OpenText Reports Second Quarter Fiscal Year 2026 Financial Results
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)
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Professional services & other: $83 M (‑11.0% YoY)
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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)
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GAAP operating margin: 12.7%
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Cash Flow:
- Operating cash flow: $319 M (‑8.4% YoY)
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Free cash flow: $279 M (‑8.9% YoY)
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Capital Returns (Q2): $119 M total → $69 M dividends, $50 M share repurchases.
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Leadership Change: Interim CEO James McGourlay announced the appointment of Ayman Antoun as permanent CEO, effective 20 Apr 2026.
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Divestitures Completed in Q2:
- eDOCS sold for $163 M (non‑core product).
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Vertica sold for $150 M (analytics portfolio).
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Guidance & Outlook: No explicit forward guidance provided; management emphasized continued focus on cloud growth, AI‑enabled enterprise information management, and a “leaner” operating model.
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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.