OpenText Corporation reported its financial results for the second quarter of fiscal 2026, revealing total revenues of $1.33 billion, a slight decrease of 0.6% compared to $1.33 billion in the same period last year. The decline was attributed to mixed performance across product categories, with increases in Content and Business Network revenues offset by declines in Cybersecurity and Analytics. The company’s cloud services and subscriptions revenue rose by 3.4% to $478.1 million, while customer support revenue fell by 1.5% to $581.9 million. The overall gross margin improved to 74.0%, up from 73.3% in the prior year.
Net income attributable to OpenText for the quarter was $168.1 million, down from $229.9 million a year earlier, resulting in diluted earnings per share of $0.66, compared to $0.87 in the same quarter of the previous year. The decrease in net income was influenced by higher operating expenses, which totaled $690.4 million, reflecting a rise in sales and marketing costs. Adjusted EBITDA for the quarter was $491.2 million, down from $501.5 million in the prior year.
In terms of strategic developments, OpenText announced the divestiture of its eDOCS business to NetDocuments for $163 million, which was completed on January 12, 2026. This divestiture is part of the company's ongoing strategy to streamline operations and focus on core Information Management solutions. Additionally, OpenText is in the process of divesting its Vertica business, with a definitive agreement reached for $150 million, expected to close in fiscal 2026.
Operationally, OpenText employed approximately 21,300 individuals as of December 31, 2025, with a notable increase in sales and marketing personnel. The company reported a total of 53 cloud services contracts exceeding $1 million closed during the quarter, compared to 51 in the same period last year. The company’s cash and cash equivalents increased to $1.27 billion, up from $1.16 billion at the end of the previous fiscal year, reflecting strong cash flow from operations of $466.4 million for the six months ended December 31, 2025.
Looking ahead, OpenText maintains its 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 continues to focus on enhancing its competitive advantage through investments in AI and Information Management capabilities while managing operational efficiencies and cost savings initiatives.
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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