OpenText Reports Mixed Q2 FY26 Results with Cloud Growth Amid Strategic Divestitures

summarizeSummary

OpenText announced mixed Q2 FY26 financial results, featuring continued cloud revenue growth and strong adjusted EBITDA margins, alongside a slight dip in total revenue and GAAP net income, while also declaring a regular quarterly dividend.

check_boxKey Events

• Q2 FY26 Financial Results Announced

  OpenText reported total revenues of $1.327 billion (-0.6% Y/Y), GAAP diluted EPS of $0.66 (-24.1% Y/Y), and Non-GAAP diluted EPS of $1.13 (+1.8% Y/Y) for the quarter ended December 31, 2025.

• Continued Cloud Revenue Growth

  Cloud revenues grew by 3.4% year-over-year to $478 million, marking the 20th consecutive quarter of cloud organic growth, with enterprise cloud bookings up 18.0% Y/Y to $295 million.

• Robust Profitability and Cash Flow

  The company achieved an Adjusted EBITDA of $491 million, representing a strong margin of 37.0%, though operating and free cash flows saw a slight decline year-over-year.

• Quarterly Dividend Declared

  The Board of Directors declared a cash dividend of $0.275 per Common Share, payable on March 20, 2026, to shareholders of record on March 6, 2026, reaffirming its dividend policy.

auto_awesomeAnalysis

OpenText's Q2 FY26 earnings present a mixed financial picture, with a slight decline in total revenues and GAAP net income, but notable strength in cloud services and adjusted EBITDA. The company achieved its 20th consecutive quarter of cloud organic growth and maintained a robust adjusted EBITDA margin of 37.0%. This report comes as the company is actively reshaping its portfolio through recent divestitures, as highlighted in the filing, and preparing for a new CEO. The sustained dividend payout reinforces the company's commitment to shareholder returns despite the mixed operational results. Investors will likely focus on the continued cloud growth and the impact of the strategic divestitures on future profitability and cash flow, especially with the stock trading near its 52-week low.