Open Text’s adjusted EPS beat estimates, while cloud growth and cash flow provided some bright spots in a quarter when total revenue declined.
Open Text Corp. (TSX: OTEX; OTEX.TO) reported first-quarter fiscal 2027 results before markets opened on November 5. Non-GAAP diluted EPS was US$1.05, 12.9% above the US$0.93 estimate and unchanged from a year earlier. GAAP diluted EPS rose 10.3% to US$0.64. Revenue fell 4.0% year over year to US$1.237 billion. Growth in cloud services was offset by declines in client support, licensing, and professional services.
Recent earnings trend
Open Text Corp
OTEX.TO
OTEX.TO
Open Text Corp
WealthAwesomeMarket cap
$9.00B
P/E
10.4x
Div. yield
3.05%
Div. / share
$1.10
52W high
$47.35
52W low
$27.00
1W change
-2.32%
Beta
0.99
Analyst Price Targets
Based on analyst covering OTEX · as of Nov 6, 2026
Wall Street analysts forecast OTEX stock price to fall 8.4% over the next 12 months.
Consensus
Moderately BearishBased on avg. target vs last close (formal rating unavailable for Canadian listings)
Avg. Target
C$33.51
-8.4% Upside
Previously C$33.50 on Nov 5, 2026
Current Price
C$36.58
Last close
Targets are snapshotted when they change. Unchanged figures keep their original date. Not financial advice.
Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on OTEX's historical volatility
30-Day Vol
29.2%
Annualized
90-Day Vol
38.3%
Annualized
Trend (90d)
+43.5%
Annualized drift
90d Mean
C$42.72
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$38.52 | C$34.83 – C$42.61 |
| 60 trading days | C$40.57 | C$35.18 – C$46.78 |
| 90 trading days | C$42.72 | C$35.88 – C$50.87 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
Analyst coverage: 7 analyst(s) cover this name; upcoming EPS consensus is available.
Beat estimates in 4 of the last 4 comparable quarter(s).
| Fiscal period | Report date | Actual EPS | Estimate | Surprise |
|---|---|---|---|---|
| 2026-09-30 | 2026-11-05 | 1.0500 | 0.9300 | +12.9% |
| 2026-06-30 | 2026-08-06 | 1.2300 | 1.0400 | +18.3% |
| 2026-03-31 | 2026-05-07 | 1.0100 | 0.9200 | +9.8% |
| 2025-12-31 | 2026-02-05 | 1.1300 | 1.0300 | +9.7% |
| 2025-09-30 | 2025-11-05 | 1.0500 | 0.9900 | +6.1% |
| 2025-06-30 | 2025-08-07 | 0.9700 | 0.8300 | +16.9% |
For Canadian investors, the results show a clear adjusted-EPS beat but a mixed business picture. Cloud revenue grew, while several established revenue lines remained under pressure.
Investor takeaway: The EPS beat is worth noting, but it doesn’t tell the whole story. Core cloud revenue rose 11.2% year over year, or 11.7% in constant currency, and free cash flow increased 36.8% to US$139 million. But total revenue fell 4.0%, client support revenue dropped 9.0%, and adjusted EBITDA margin slipped 50 basis points to 35.8%. Investors will want to watch management’s efforts to improve IT Operations Management and cybersecurity, along with cloud growth and debt reduction. See the Open Text stock page for company details.
US$1.05 adjusted EPS, 12.9% above estimate
Open Text’s non-GAAP diluted EPS of US$1.05 beat the US$0.93 estimate and marked a fourth straight comparable-quarter beat in the supplied history. EPS was flat year over year, while GAAP diluted EPS rose 10.3% to US$0.64. Revenue fell 4.0%, so the earnings surprise came alongside uneven results across the business.
Bull case
Core cloud revenue grew 11.2%, while Content Cloud rose 20.7%. Open Text also recorded its 23rd consecutive quarter of organic cloud revenue growth. Operating cash flow increased 16.6% to US$172 million, and free cash flow climbed to US$139 million. Gross debt was US$949 million lower than a year earlier, and net debt to adjusted EBITDA stood at 2.55 at quarter-end.
Bear case
Revenue fell 4.0% to US$1.237 billion. Client support revenue declined 9.0%, licensing revenue fell 8.0%, and professional services and other revenue dropped 11.0%. IT Operations Management and cybersecurity both faced double-digit declines, which management attributed to execution issues. Adjusted EBITDA margin fell 50 basis points year over year. For the second quarter, the company expects revenue of US$1.26 billion to US$1.29 billion and an adjusted EBITDA margin of 33% to 34%.
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