The strong Non-GAAP EPS beat and accelerating cloud bookings (up 24% YoY) signal improving operational momentum under the new CEO. Monitor the Q1 FY2027 earnings call for guidance on core organic growth in constant currency, which management has flagged as a key focus for the 'foundation year'. The renewed buyback provides a floor, but the declining customer support revenue stream warrants attention.
Price Chart
Executive Summary
OpenText reported Q4 FY2026 results with Non-GAAP EPS of $1.23, a 17.7% beat vs. the $1.04 consensus, and total revenue of $1.349B, slightly above the $1.32B estimate. Cloud revenue grew 6.0% YoY to $503M, and enterprise cloud bookings surged 24.1% to $295M. The company also renewed its share repurchase plan authorizing up to 23.8M shares and declared a $0.28 dividend. The solid beat on the Street-quoted Non-GAAP EPS and strong cloud bookings signal healthy execution, though total revenue growth remains modest at 2.9% YoY and customer support revenue declined 4.6% YoY, tempering the overall bullish read.
Key Financial Metrics
Key Facts
- Non-GAAP EPS of $1.23 beat consensus of $1.04 by 17.7%
- Total revenue of $1.349B, +2.9% YoY, slightly above $1.32B consensus
- Cloud revenue grew 6.0% YoY to $503M, with enterprise cloud bookings up 24.1% to $295M
- Adjusted EBITDA margin expanded to 37.6% from 33.9% in Q4 FY25
- GAAP net income surged 439.9% YoY to $155.7M, driven by lower special charges and a divestiture gain
- Customer support revenue declined 4.6% YoY to $553.8M, partially offsetting cloud growth
- Board declared a $0.28 per share dividend, a 5% increase from the prior $0.2625
- Renewed share repurchase plan authorizing up to 23.8M shares over 12 months
- Completed $150M divestiture of non-core Vertica to Rocket Software
Financial Impact
Non-GAAP EPS beat consensus by $0.19 (17.7%); Q4 revenue beat by ~$29M (2.2% above consensus)
Risk Factors
- Customer support revenue continues to decline (-4.6% YoY), signaling potential churn in the legacy base
- Free cash flow was flat YoY at $122M despite higher operating cash flow, due to elevated capex
- Total revenue growth remains low single-digit (2.9% YoY) with constant-currency growth of only 0.9%
- Forward-looking statements are aspirational and not considered guidance; execution risk on the FY2027 plan is high
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001002638-26-000067 |
| Document: otex-20260806.htm | 0001002638-26-000067 |
| Document: 0001002638-26-000067-index-headers.html | 0001002638-26-000067 |
| Document: 0001002638-26-000067-index.html | 0001002638-26-000067 |
| Document: 0001002638-26-000067.txt | 0001002638-26-000067 |
| 8-K Data (Synthetic) | 0001002638-26-000067 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 8w ago | 8-K | $25.66 $24.85 | ▼ −3.16% | ▼ −3.76% | $22.22 (−13.41%) |
Jul 17, 2026 11w ago | 8-K | $23.27 $24.54 | ▲ +5.46% | ▲ +1.01% | $22.22 (−4.51%) |
Jun 11, 2026 16w ago | Institutional Cluster | $21.87 $22.97 | ▲ +5.03% | ▲ +3.14% | $22.22 (+1.60%) |
May 11, 2026 20w ago | 8-K | $24.40 $22.16 | ▼ −9.18% | ▼ −8.88% | $22.22 (−8.93%) |
Apr 20, 2026 23w ago | 8-K | $23.36 $23.81 | ▲ +1.93% | ▼ −2.28% | $22.22 (−4.88%) |
Apr 10, 2026 25w ago | 8-K | $20.85 $23.69 | ▲ +13.62% | ▲ +5.09% | $22.22 (+6.57%) |
US Market Status
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