OpenText Reports Q4 and FY2026 Results: Cloud Revenue Up 5.5%, $1.9B Adjusted EBITDA, Renews $500M Buyback
OTEX sits 37% above its 52-week low of $19.775.
Summary
OpenText reported Q4 and FY2026 earnings with cloud revenue growth of 5.5% and adjusted EBITDA of $1.9 billion. The company renewed its share buyback program and declared a $0.28 dividend, while guiding for modest revenue growth in fiscal 2027.
Key Events · Earnings and Guidance · OTEX
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Q4 and FY2026 Earnings Beat
Q4 revenue of $1.349B (+2.9% Y/Y) and FY2026 revenue of $5.246B (+1.5% Y/Y). Cloud revenue grew 5.5% to $1.959B. Non-GAAP EPS of $4.42 for the year, up 15.7%.
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Strong Profitability and Cash Flow
Adjusted EBITDA of $1.903B (36.3% margin) and free cash flow of $808M for FY2026, up 17.5% Y/Y. Operating cash flow reached $1.007B.
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Share Buyback Renewal
Board authorized repurchase of up to 23.8M shares (10% of public float) over 12 months starting August 12, 2026, replacing the expiring $500M program.
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Quarterly Dividend Declared
Cash dividend of $0.28 per share, payable September 18, 2026 to shareholders of record September 4, 2026.
Analysis · OTEX · Technology
OpenText delivered a solid fiscal 2026 with cloud revenue growth of 5.5% to $1.96 billion and adjusted EBITDA margins of 36.3%, demonstrating durable profitability. The company guided for fiscal 2027 revenue of $5.135–$5.185 billion, signaling modest growth expectations. The renewal of the share repurchase plan for up to 23.8 million shares (10% of public float) underscores management's confidence in cash generation and commitment to returning capital to shareholders. The $0.28 quarterly dividend continues the company's track record of shareholder returns.
At the time of this filing, OTEX was trading at $27.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $6.2B. The 52-week trading range was $19.78 to $39.90. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.