OpenText Corporation (NASDAQ: OTEX, TSX: OTEX) has announced its financial performance for the third quarter of fiscal year 2026, ending March 31, 2026. The results reveal a positive trajectory for the company as it continues to capitalize on the growing demand for cloud services and enterprise data management solutions.

1. Strong Leadership Transition

Ayman Antoun, who recently took over as CEO, expressed enthusiasm about leading OpenText at a crucial time for both the company and its clients. "Data is a company's most precious natural resource, and OpenText is uniquely positioned to help clients securely unlock the value of that data to solve complex challenges and win," he stated. Antoun emphasized his commitment to listening and learning from stakeholders, as well as his focus on disciplined execution and sustainable growth moving forward.

2. Continued Growth in Cloud Business

James McGourlay, President and Chief Client Officer, highlighted the robust performance of the company's cloud business, reporting a year-over-year revenue growth of 6.6%. This segment is pivotal as enterprises increasingly migrate to the cloud to enhance their data management and security measures. "As large enterprises move to the cloud, we enable choice and flexibility to help them innovate, while meeting data regulation requirements," said McGourlay.

Financial Highlights

OpenText's financial metrics for the quarter demonstrated resilience and growth:

Total Revenues: $1.283 billion, representing a 2.2% increase year-over-year.

Annual Recurring Revenues (ARR): $1.058 billion, up 2.7% year-over-year.

Cloud Revenues: $493 million, marking a significant 6.6% increase year-over-year, with the company achieving 21 consecutive quarters of organic growth in this segment.

Quarterly Enterprise Cloud Bookings: $196 million, a remarkable 29.6% increase year-over-year, indicating strong demand for cloud offerings.

Operating Cash Flows: $355 million, with free cash flows reaching $305 million.

Net Income: GAAP net income of $173 million, reflecting an 86.0% increase year-over-year, while Non-GAAP net income was reported at $250 million, a 15.9% rise year-over-year.

Adjusted EBITDA: $438 million, yielding a margin of 34.1%.

Diluted Earnings Per Share (EPS): GAAP EPS stood at $0.70, while Non-GAAP EPS was reported at $1.01.

Capital Returns: The company returned $313 million to shareholders, which included $66 million in dividends and $247 million through share repurchases.

3. Robust Cash Flow and Share Repurchase Program

Steve Rai, Executive Vice President and Chief Financial Officer, noted that operational discipline has bolstered OpenText's resilient business model, delivering solid margins and free cash flow performance in the quarter. The robust cash flow allowed the company to repurchase and cancel 9.7 million shares, reducing the total outstanding shares to 242.2 million—down 6.7% year-over-year. This strategic move underscores OpenText's commitment to returning value to shareholders while maintaining financial flexibility.

4. Conclusion

With a strong quarterly performance and a committed leadership team, OpenText is well-positioned to navigate the evolving landscape of enterprise data management. As organizations increasingly recognize the importance of data and cloud solutions, OpenText’s focus on innovation and client success will be crucial in driving future growth. The company’s ability to sustain its momentum in the cloud space while managing operational efficiencies may prove to be a pivotal strategy as it looks ahead in fiscal year 2026.

Original press release