Canada's Open Text meets Q1 revenue estimates

Overview

• Canada data management software firm's fiscal Q1 revenue declined 4% yr/yr, meeting analyst expectations

• Adjusted EPS for fiscal Q1 was flat yr/yr

• Company repurchased $23 mln in shares and reduced debt by $300 mln after refinancing

Outlook

• Company to provide strategic priorities and growth outlook at Investor Day in February 2027

Result Drivers

• CLOUD GROWTH - Co said 11% yr/yr growth in core cloud revenues supported results

• OPERATIONAL DISCIPLINE - Co attributed performance to financial and operational discipline, per CFO Steve Rai

• CLIENT WINS - Co cited key client wins across multiple industries as a contributor to results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for Open Text Corporation is C$47.04, about 26.8% above its November 4 closing price of C$37.09

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Nov 3 - UK's Clarivate Q3 revenue falls 9%, misses estimates

• Nov 4 - Canada's Kinaxis Q3 SaaS revenue rises, lifts 2026 outlook

• Nov 3 - Dynatrace Q2 revenue beats estimates, sets $1 bln additional buyback

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)