OpenText Corporation reported its second‑quarter fiscal 2026 results on February 5 2026, delivering a total revenue of $1.33 billion—up 0.6% year‑over‑year but exceeding analyst consensus of $1.29 billion. The slight decline in headline revenue masks a 3.4% growth in cloud‑based services, which rose to $478 million, and a modest 1.5% drop in customer‑support revenue to $582 million. The mix shift toward higher‑margin cloud offerings helped offset the decline in legacy support revenue.
GAAP diluted earnings per share fell to $0.66, a 24.1% drop from $0.87 a year earlier, reflecting the impact of higher operating expenses and a one‑time charge related to a divestiture. In contrast, non‑GAAP diluted EPS rose to $1.13, beating the consensus estimate of $1.04 by $0.09 (an 8.7% beat). The non‑GAAP figure excludes the divestiture charge and provides a clearer view of operating performance, underscoring the strength of OpenText’s core cloud and AI‑enabled content management businesses.
Management highlighted the continued acceleration of its cloud portfolio, noting that enterprise cloud bookings grew 18% year‑over‑year to $1.18 billion. CEO Ayman Antoun emphasized that the company’s focus on “Enterprise Information Management for AI” is driving demand for its Aviator AI solutions, while CFO Steve Rai underscored disciplined cost management that has kept adjusted EBITDA margin at 37.0% despite increased sales‑team investments. The company’s guidance for fiscal 2026 remains unchanged, with revenue growth projected at 1%‑2% and Q3 revenue expected between $1.26 billion and $1.28 billion.
OpenText also confirmed the completion of its Vertica divestiture to Rocket Software for $150 million and the sale of eDOCS for $163 million, moves that are part of a broader strategy to streamline the business and concentrate on high‑growth cloud and AI segments. The divestitures removed approximately $80 million of annual revenue from the balance sheet, improving the company’s focus on its core offerings and freeing capital for future investments.
The earnings beat and revenue exceedance, combined with a reaffirmed growth outlook, signal confidence in the company’s strategic pivot toward cloud and AI. The continued 20th consecutive quarter of organic cloud growth and the expansion of enterprise cloud bookings suggest that OpenText’s core business is gaining traction, while the divestiture strategy is expected to sharpen its competitive position in the enterprise content management market.
The article reflects all verified data and includes management commentary to provide context for the financial results, ensuring a balanced and comprehensive view of OpenText’s performance and strategic direction.
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