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Canada's Open Text meets Q1 revenue estimates

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Meet

$1.24 bln

$1.24 bln (6 Analysts)

Q1 Annual Recurring Revenue

$1.04 bln


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.)

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