Open Text (OTEX) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 total revenue reached $5.25B, up 1.5% year-over-year, with Q4 revenue at $1.35B, up 2.9% year-over-year.

• Cloud revenue for FY2026 was $1.96B, up 5.5% year-over-year, with Q4 cloud revenue at $503M, up 6%.

• Core portfolio revenue grew 3% year-over-year in constant currency in Q4, with all core segments achieving organic growth.

• Significant debt reduction and capital returns, including $649M debt repaid and 6% of shares repurchased in FY2026.

• FY2027 is positioned as a foundation year, focusing on disciplined execution, core growth, and enhanced performance, with strategic investments in sales capacity, ecosystem partners, and AI.

Financial highlights

• FY2026 GAAP net income was $643M, up 47.5% year-over-year; GAAP diluted EPS was $2.58, up 56.4%; non-GAAP EPS was $4.42, up 15.7%.

• FY2026 adjusted EBITDA margin was 36.3%, up 170 bps; Q4 adjusted EBITDA margin was 37.6%.

• Annual recurring revenue (ARR) reached $4.25B, up 1.3% year-over-year, representing over 78% of total revenue.

• FY2026 operating cash flow was $1.01B, up 21.2%; free cash flow was $808M, up 17.5%.

• Q4 FY2026 GAAP diluted EPS was $0.64, up 481.8%; adjusted EPS was $1.23, up 26.8%.

Outlook and guidance

• FY2027 total revenue expected at $5.135B–$5.185B (-2% to -1% reported, 0%-1% constant currency, excluding divestitures).

• Core revenue growth projected at 2%-3% in constant currency; core cloud revenue growth expected at 8%-10%.

• Adjusted EBITDA margin expected at 32%-33%; free cash flow guidance: $625M–$725M.

• Q1 FY2027 revenue guidance: $1.22B–$1.25B; adjusted EBITDA margin: 32%-33%.

• Growth investments of $100M–$200M planned, mainly for sales capacity and partner ecosystem.