Earnings summary

Open Text Corp Q3 2026 results

Snapshot

Open Text Corp reported $1.28B of revenue in Q3 2026, up 2.2% year over year, with diluted EPS of $0.70 and an operating margin of 15.7%.

$1.28B

Revenue

+2.2%

YoY growth

$0.70

Diluted EPS

15.7%

Operating margin

01 Key takeaways

•on May 27th, and the Jefferies Software, Internet & AI Conference in Newport Beach, California on May 28th.
•When we consistently partner with clients to solve their most pressing challenges and realize the full value of their AI investment, they reward us with growth, loyalty, and value creation for our shareholders.
•Turning to Q3, we ended off the quarter with solid performance in total revenues, beating our own expectations for free cash flow and adjusted EPS.
•However, I would like to highlight that in Q3, we generated total revenues of approximately $1.28 billion, led by overall cloud growth of 6.6% year-on-year.
•If you look specifically at cloud revenue for content, it grew 22% year-on-year.
•Content, which is our largest and fastest growing business, continues to demonstrate strength, and it also leads our cloud growth.
•Some notable Q3 and year-to-date metrics include Q3 cloud revenue of $493 million is the highest in the company history.
•Q3 adjusted EPS of $1.01 is the highest in Q3 company history.
•Year-to-date adjusted EPS of $3.19 is tied with our highest Q3 year-to-date figure ever in Q3 FY 2024.
•We saw 41 cloud deals greater than $1 million in Q3, an increase of 28% year-on-year.
•Q3 year-to-date cash flow of $686 million is the highest Q3 in company history.
•Turning to some of our client wins this quarter that highlight the growth trajectory of our core business.

•Record quarterly cloud revenue of $493 million, up 6.6% year-over-year, the highest in company history, driven mainly by Content Cloud
•Content Cloud revenue grew 22% year-over-year; total content business (44% of total revenues) grew 6%, and core cloud business was up 12% year-over-year
•Adjusted EBITDA of $438 million at a 34.1% margin, up 10.8% in dollars and 260 basis points year-over-year, driven by cost management and the business optimization plan
•Q3 adjusted EPS of $1.01 (highest Q3 in company history, up 23.2%); year-to-date adjusted EPS of $3.19, up 11.9%
•Q3 year-to-date enterprise cloud bookings of $651 million and Q3 year-to-date cash flow of $686 million, both Q3 year-to-date company records; 41 cloud deals over $1 million in Q3, up 28% year-over-year
•Margin expansion with GAAP gross margin of 73.1% (up 150 bps) and non-GAAP gross margin of 76.7% (up 100 bps); GAAP net income of $173 million, up 86%

•Free cash flow of $305 million was down 18.4% year-over-year in the quarter despite year-to-date strength
•Customer support revenue of $565 million was down slightly by 0.4%, and cloud net renewal rate slipped 1% to 95%
•Cybersecurity and ITOM businesses were down in the quarter, with management acknowledging the need to return cyber to growth
•Lingering impact from the U.S. government shutdown weighed on the Americas region, with some government contracts still unclosed
•On a constant currency basis, core revenue will likely not be growing due to FX headwinds