OpenText has broadened its sovereign‑cloud footprint in Europe by adding its enterprise data and AI solutions to the AWS European Sovereign Cloud and partnering with S3NS, the Thales‑Google Cloud joint venture, to deliver a SecNumCloud‑qualified trusted cloud platform for French and European enterprises.
In its Q2 2026 earnings, OpenText reported total revenue of $1.327 billion, a 0.6 % decline from the same period a year earlier, driven by a 3.4 % rise in cloud revenues to $478 million and an 18 % increase in enterprise cloud bookings. GAAP net income fell 26.9 % to $168 million, while Non‑GAAP net income slipped 2.4 % to $286 million. Adjusted EBITDA reached $491 million, a 37 % margin, and Non‑GAAP diluted earnings per share rose 1.8 % to $1.13, beating the consensus of $1.01 by 11.9 %. Management attributed the GAAP decline to foreign‑exchange impacts on acquisition‑related derivatives and higher sales‑team investment, while the Non‑GAAP EPS beat was driven by disciplined cost control and a favorable mix shift toward higher‑margin cloud contracts.
The AWS partnership places OpenText’s Content Management, Documentum, Core Application Security and Core Service Management on a purpose‑built sovereign cloud that keeps data within EU borders while leveraging AWS’s global infrastructure. The S3NS collaboration brings a SecNumCloud 3.2‑qualified platform—certified in December 2025—to French and European customers, allowing the most sensitive workloads to remain in a locally governed environment while less‑sensitive workloads run on Google Cloud. Together, the deals address the growing demand for data residency and compliance in the EU, positioning OpenText to serve highly regulated customers who require both cloud agility and sovereign control.
James McGourlay, interim CEO, said, “We had an excellent quarter, led by 18 % revenue growth in our Content Management cloud business.” He added, “Our results for this quarter and the first half of demonstrate our commitment to deliver on our objectives and maintain a steady ship as we continue to implement our strategy of reshaping our business to focus on our faster growing core businesses.” Shannon Bell, Chief Digital Officer, noted, “OpenText has spent years building trusted, secure content solutions for the world's most regulated industries and regions including FedRAMP‑authorized, IRAP‑assessed, and Protected B‑aligned deployments. Making our solution available on the AWS European Sovereign Cloud brings that expertise to a sovereign cloud purpose‑built for the European Union. Together with AWS, we are giving customers the confidence to innovate at scale without compromising on control.”
Steve Rai, CFO, highlighted the company’s strong margin and free‑cash‑flow performance, stating, “OpenText delivered strong margin and free cash flow performance in the quarter. The Company's Business Optimization Plan is well underway, and will drive operational efficiencies across the organization.” He added, “We have tremendous scale and the capital flexibility to continue investing for growth to ensure OpenText is well positioned to lead the Information Management for AI market.” P. Thomas Jenkins, Executive Chair, emphasized the broader strategy: “OpenText continues to advance its strategy to enhance shareholder value by growing revenue in its core Information Management for AI business, and with the announcement of our definitive agreement to divest an on‑premise solution (eDOCS), a part of its Analytics portfolio, we have started the process of portfolio‑shaping and divesting non‑core assets.” The combination of sovereign‑cloud expansion, disciplined cost management, and portfolio optimization signals a focused push toward higher‑margin AI‑enabled content solutions in a market where data sovereignty remains a top priority.
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