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Open Text's Operating Income for the
three
months ended in Mar. 2026 was C$377 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was C$1,566 Mil.
Operating Margin % is calculated as Operating Income divided by its Revenue. Open Text's Operating Income for the
three
months ended in Mar. 2026 was C$377 Mil. Open Text's Revenue for the
three
months ended in Mar. 2026 was C$1,760 Mil. Therefore, Open Text's Operating Margin % for the quarter that ended in Mar. 2026 was 21.45%.
Warning Sign:
Open Text Corp operating margin has been in a 5-year decline. The average rate of decline per year is -2.1%.
Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Open Text's annualizedROC % for the quarter that ended in Mar. 2026 was 7.08%.
Open Text's annualizedROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 216.81%.
Open Text (TSX:OTEX) Operating Income Explanation
1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Open Text's annualizedROC % for the quarter that ended in Mar. 2026 is calculated as:
* 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.
4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.
Be Aware
Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Open Text Operating Income Related Terms
Open Text Operating Income Historical Data
* Premium members only.
The historical data trend for Open Text's Operating Income 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.
Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.
Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$1,566 Mil.
* 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.
Open Text (TSX:OTEX) has a Operating Income of C$1,566 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Open Text and its competitors.
Is Open Text's Operating Income too high?
Open Text's current Operating Income is C$1,566 Mil. Overall, Open Text has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Open Text's Operating Income compare to UBER and SHOP?
Open Text's Operating Income of C$1,566 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Open Text and its competitors. Open Text's current Operating Income is C$1,566 Mil. 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?
Based on GuruFocus' analysis, Open Text (TSX:OTEX) is currently considered Modestly Undervalued. The stock's GF Value™ is C$45.61, compared to a current price of C$32.62 — trading 28.5% below its estimated fair value. The current Operating Income is C$1,566 Mil. Open Text's overall GF Score™ is 89/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Open Text (TSX:OTEX), the current Operating Income is C$1,566 Mil 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 (TSX:OTEX) Overvalued in 2026?
Based on GuruFocus' analysis, Open Text stock appears to be undervalued.
The current stock price of C$32.62 is trading 28.5% below its estimated GF Value™ of C$45.61.
GuruFocus considers Open Text to be Modestly Undervalued.
Key valuation signals for TSX:OTEX:
Operating Income: C$1,566 Mil
GF Value™: C$45.61 vs. price of C$32.62 (28.5% below fair value)
No single metric tells the full story. See the TSX:OTEX 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.
89GF Score
Get the complete analysis for TSX:OTEX
Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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