Open TextMEX:OTEXN 85 Gross Margin % is 73.08% as of Mar. 2026, which is 6% above its 10-year median of 68.99. GuruFocus rates MEX:OTEXN with a GF Score™ of 85/100 and a GF Value™ of MXN1,168.28. The stock has 4 warning signs investors should review. Among 2,683 Software companies, Open Text ranks better than 82.67% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Open Text's Gross Profit for the
three
months ended in Mar. 2026 was MXN16,902 Mil. Open Text's Revenue for the
three
months ended in Mar. 2026 was MXN23,127 Mil. Therefore, Open Text's Gross Margin % for the quarter that ended in Mar. 2026 was 73.08%.
The historical rank and industry rank for Open Text's Gross Margin % or its related term are showing as below:
MEX:OTEXN'
s Gross Margin % Range Over the Past 10 Years
Min: 66.22 Med: 68.99 Max: 73.06
Current: 73.06
During the past 13 years, the highestGross Margin % of Open Text was 73.06%. The lowest was 66.22%. And the median was 68.99%.
MEX:OTEXN's Gross Margin % is ranked better than 82.67% of 2683
companies
in the Software industry
Industry Median: 40.45
vs MEX:OTEXN: 73.06
Open Text had a gross margin of 73.08% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Open Text was 1.40% per year.
Open Text (MEX:OTEXN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Open Text had a gross margin of 73.08% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Open Text Gross Margin % Related Terms
Open Text Gross Margin % Historical Data
* Premium members only.
The historical data trend for Open Text's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:OTEXN vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Open Text's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Open Text Gross Margin % vs Software Industry
For the Software industry and Technology sector, Open Text's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Open Text's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Open Text (MEX:OTEXN) has a Gross Margin % of 73.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Open Text and its competitors. This is near median its historical median of 68.99. Over the past decade, Open Text's Gross Margin % has ranged from 66.22 to 73.06. According to the industry distribution chart, Open Text ranks #465 out of 2683 companies in the Software industry, placing it in the top 17.3%.
Is Open Text's Gross Margin % too high?
Open Text's current Gross Margin % of 73.08% is near median its 10-year median of 68.99. Over the past 10 years, this metric has ranged from a low of 66.22 to a high of 73.06. The Software industry median Gross Margin % is 40.45. Open Text's value of 73.08% is 80.7% above this industry median. Based on the distribution chart, Open Text ranks #465 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Open Text has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Open Text's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Open Text ranks #465 out of 2683 companies for Gross Margin %. This places Open Text in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Open Text's value of 73.08% is 80.7% above this benchmark. Historically, Open Text's own Gross Margin % has ranged from 66.22 to 73.06 over the past decade. While the company's 10-year median is 68.99 vs. the industry median of 40.45, Open Text has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current Gross Margin % of 73.08% is 80.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Open Text and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current Gross Margin % is 73.08%, which is near median its own 10-year median of 68.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Open Text stock overvalued right now?
Open Text (MEX:OTEXN) has a current Gross Margin % of 73.08%. The stock's GF Value™ is MXN1,168.28, compared to a current price of MXN777.91 — trading 33.4% below its estimated fair value. The current Gross Margin % is 73.08%, which is near median its 10-year median of 68.99 and 80.7% above the Software industry median of 40.45. Open Text's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Open Text (MEX:OTEXN), the current Gross Margin % is 73.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Open Text (MEX:OTEXN) Overvalued in 2026?
Based on GuruFocus' analysis, Open Text stock appears to be undervalued.
The current stock price of MXN777.91 is trading 33.4% below its estimated GF Value™ of MXN1,168.28.
Key valuation signals for MEX:OTEXN:
Gross Margin %: 73.08% (near median its 10-year median of 68.99)
GF Value™: MXN1,168.28 vs. price of MXN777.91 (33.4% below fair value)
Industry Position: 80.7% above the Software median (#465 of 2683)
No single metric tells the full story. See the MEX:OTEXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Open Text Corp is engaged in the design, development, marketing, and sale of Information Management software and solutions. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, and presentations). Its platform and services provide secure and scalable solutions for enterprises, SMBs, governments, and consumers around the world. The company's solutions are marketed and delivered on the OpenText Cloud Platform, which is a comprehensive Information Management platform consisting of six business clouds; Content Cloud, Cybersecurity Cloud, Application Automation Cloud, Business Network Cloud, IT Operations Management Cloud, and Analytics Cloud. Geographically, it derives maximum revenue from the United States.
85GF Score
Get the complete analysis for MEX:OTEXN
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:OTEXN has been successfully added to your 
