OpenText Corporation reported its financial results for the first quarter of Fiscal 2026, ending September 30, 2025, revealing a total revenue of $1.288 billion, a 1.5% increase from $1.269 billion in the same period last year. The growth was primarily driven by a 6.0% rise in cloud services and subscriptions revenue, which reached $484.5 million, and a 6.9% increase in license revenue, totaling $134.5 million. The company’s net income attributable to OpenText surged to $146.6 million, compared to $84.4 million in the prior year, resulting in a diluted earnings per share of $0.58, up from $0.32.
In terms of operational metrics, OpenText's annual recurring revenue, which includes cloud services and customer support, increased by 1.8% to $1.071 billion. The company also reported a gross margin of 72.8%, an improvement from 71.7% in the previous year. Adjusted EBITDA rose to $467.4 million, compared to $443.8 million in the same quarter last year, reflecting the company's focus on operational efficiency and cost management.
Significant changes in the company's financial position included a decrease in cash and cash equivalents to $1.087 billion from $1.156 billion at the end of the previous quarter. OpenText's total liabilities also decreased, with current liabilities dropping to $2.463 billion from $2.747 billion, largely due to a reduction in deferred revenues. The company’s employee headcount stood at approximately 21,200 as of September 30, 2025, reflecting ongoing adjustments in workforce management as part of its Business Optimization Plan.
Strategically, OpenText announced a definitive agreement to divest its eDOCS business to NetDocuments for $163 million, a move aimed at refocusing on core Information Management solutions. The transaction is expected to close in early 2026, subject to customary approvals. Additionally, the company has been actively managing its share repurchase program, having repurchased 3.156 million shares for $102 million during the quarter, as part of its ongoing capital allocation strategy.
Looking ahead, OpenText maintains its full-year Fiscal 2026 outlook, projecting total revenue growth of 1% to 2% and cloud services and subscriptions revenue growth of 3% to 4%. The company aims to achieve an adjusted EBITDA margin improvement of 50 to 100 basis points and free cash flow growth of 17% to 20%. OpenText's management remains focused on leveraging its AI-first Information Management offerings to drive future growth and operational excellence.
About OPEN TEXT CORP
OpenText is a global leader in Information Management software and services, enabling organizations to create, secure, analyze, and leverage structured and unstructured data across cloud, on-premises, and hybrid environments. Its solutions support digital transformation, AI integration, cybersecurity, and supply chain automation for enterprises, SMBs, and government clients, helping improve efficiency, compliance, and customer experiences through scalable, flexible, and secure platforms.
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