OpenText's Fiscal 2026 Annual Report: Revenue Climbs 1.5%, GAAP EPS Reaches $2.58, and Fiscal 2027 Guidance Is Issued
OTEX sits 37% above its 52-week low of $19.775.
Summary
OpenText's annual report shows revenue up 1.5% to $5.25 billion and GAAP EPS of $2.58. The company guided for Fiscal 2027 revenue of $5.135–$5.185 billion and disclosed a CRA tax dispute that could reduce deferred tax assets by up to $470 million.
Key Events · Earnings and Guidance · OTEX
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Fiscal 2026 Financial Results
Total revenues grew 1.5% to $5,246.4 million. GAAP net income attributable to OpenText jumped to $643.0 million, or $2.58 per diluted share, from $435.9 million a year earlier. Non-GAAP EPS came in at $4.42.
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Fiscal 2027 Outlook
Management expects total revenues of $5,135 to $5,185 million, an Adjusted EBITDA margin of 32% to 33%, and free cash flows of $625 to $725 million.
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CRA Tax Dispute
The Canada Revenue Agency has reassessed fiscal years 2012–2021. Should the company fail in its defense, a non-cash income tax expense of up to $470 million could be recorded to reduce deferred tax assets, with potential cash tax impacts spread over several years. The company is contesting the reassessments.
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Leadership Changes
Ayman Antoun was appointed CEO effective April 20, 2026, and Steve Rai became CFO effective October 6, 2025, following the departures of the prior CEO and CFO.
Analysis · OTEX · Technology
The 10-K delivers the first complete picture of OpenText's full-year performance, marked by modest revenue growth and a sharp rise in GAAP net income. A material tax contingency with the CRA stands out: up to $470 million in deferred tax assets could be at risk, though no immediate cash impact is expected. For the year ahead, management set baseline expectations with Fiscal 2027 guidance on revenue, margins, and free cash flow. The period also saw the completion of two divestitures and the appointment of a new CEO and CFO, signaling a leadership transition. While the underlying business appears stable, the tax dispute and subdued growth outlook warrant close attention.
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 neutral market sentiment and an importance score of 8 out of 10.