Q2 2026 Open Text Corp Earnings Call Transcript
Key Points
- Open Text Corp (OTEX) reported solid financial performance, exceeding expectations on total revenues, adjusted EBITA margin, and adjusted EPS.
- The company achieved total revenues of approximately $1.33 billion, with cloud growth of 3.4% year-on-year.
- Enterprise cloud bookings were strong, growing 18% year-on-year, with 53 cloud deals larger than $1 million closed.
- The content business, which constitutes 43% of total revenues, grew 4.5% year-on-year, with cloud revenue for content increasing by 18%.
- Open Text Corp (OTEX) is well-positioned in the AI space, with its AI aviator tools providing additional value and insights to clients, and a new AI data platform set to launch next quarter.
- GAAP net income decreased by 26.9% year-over-year, largely due to effects on acquisition-related derivatives.
- Customer support revenue declined by 1.5%, and professional services revenue fell by 10.2% year-over-year.
- Adjusted EBITDA margin decreased by 60 basis points, primarily due to increased investment in the sales team.
- Free cash flow was down 8.9% year-over-year, despite an increase in non-GAAP diluted EPS.
- The company is undergoing a portfolio reshaping, with divestitures such as Vertica, which may impact future revenue streams.
Thank you for standing by. This is the conference operator. Welcome to the Open Text Corporation's second quarter fiscal 2026 financial results conference call.
As a reminder, all participants are in listen-only mode, and the conference is being recorded.
After the presentation, there will be an analyst question-and-answer session.
To join the question queue, you may press then 1 on your telephone keypad.
Should anyone need assistance during the conference call, they may reach an operator by pressing then 0 on their telephone.
I would now like to turn the conference over to Mr. Greg Sekert, head of investor relations. Please go ahead.
Thank you, operator, and good afternoon everyone. Welcome to OpenTech's second quarter fiscal 2026 earnings call.
With me on the call today are OpenText executive Chair and Chief Strategy Officer Tom Jenkins, together with James McGorley, our interim Chief Executive Officer, and Steve Ray, our executive
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