OpenText Corporation reported a total revenue of $5.25 billion for the fiscal year ending June 30, 2026, marking a 1.5% increase from the previous year. However, when adjusted for foreign currency fluctuations and the impact of divested businesses, revenue decreased by 0.5%. The growth was primarily driven by increases in the Content, Business Network, Application Delivery Management (ADM), and IT Operations Management (ITOM) product categories, which offset declines in Cybersecurity and Analytics. The company’s gross margin improved to 73.7%, up from 72.3% in the prior year, while net income attributable to OpenText rose significantly to $643 million, compared to $436 million in the previous fiscal year.
In terms of strategic developments, OpenText completed several significant divestitures, including the sale of its eDOCS and Vertica businesses, which contributed to a total of $313 million in cash proceeds used to reduce outstanding debt. The company also made a notable acquisition of KineMatik, enhancing its automated business process capabilities. OpenText's total annual recurring revenue reached $4.25 billion, reflecting a 1.3% increase, although it decreased by 1.2% when accounting for foreign exchange impacts.
Operationally, OpenText's workforce comprised approximately 19,900 employees as of June 30, 2026, with a notable reduction in research and development personnel, which decreased by 1,091 employees. The company reported a cloud net renewal rate of 94%, down from 96% the previous year, indicating a slight decline in customer retention for its cloud services. The company also reported 191 cloud services contracts exceeding $1 million, an increase from 149 contracts in the prior year.
Looking ahead, OpenText has set an outlook for fiscal 2027, projecting total revenues between $5.14 billion and $5.19 billion, with expected growth in cloud services and subscriptions revenue of 8% to 10%. The company aims to achieve an adjusted EBITDA margin of 32% to 33% and free cash flows between $625 million and $725 million. OpenText's strategic focus remains on enhancing its data management capabilities, particularly in the context of increasing enterprise adoption of AI technologies, while continuing to streamline operations and optimize its product portfolio.
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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