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Open TextOTEX -2.81%83 Operating Margin % is 25.10% as of Jun. 2026, which is 28% above its 10-year median of 19.61. GuruFocus rates OTEX with a GF Score™ of 83/100 and a GF Value™ of $31.17 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,821 Software companies, Open Text ranks better than 90.36% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Open Text's Operating Income for the
three
months ended in Jun. 2026 was $339 Mil. Open Text's Revenue for the
three
months ended in Jun. 2026 was $1,349 Mil. Therefore, Open Text's Operating Margin % for the quarter that ended in Jun. 2026 was 25.10%.
Good Sign:
Open Text Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Open Text's Operating Margin % or its related term are showing as below:
OTEX'
s Operating Margin % Range Over the Past 10 Years
Min: 15.28 Med: 19.61 Max: 23.18
Current: 23.18
OTEX's Operating Margin % is ranked better than 90.36% of 2821
companies
in the Software industry
Industry Median: 3.92
vs OTEX: 23.18
Open Text's 5-Year Average Operating Margin % Growth Rate was 1.30% per year.
Open Text's Operating Income for the
three
months ended in Jun. 2026 was $339 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was $1,216 Mil.
Open Text (NAS:OTEX) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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 Margin % Related Terms
Open Text Operating Margin % Historical Data
* Premium members only.
The historical data trend for Open Text's Operating 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.
OTEX vs QH, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Open Text's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Software Industry
For the Software industry and Technology sector, Open Text's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Open Text's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Open Text's Operating Margin % for the fiscal year that ended in Jun. 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.
Open Text (OTEX) has a Operating Margin % of 25.10% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Open Text and its competitors. This is 28% above median its historical median of 19.61. Over the past decade, Open Text's Operating Margin % has ranged from 15.28 to 23.18. According to the industry distribution chart, Open Text ranks #272 out of 2821 companies in the Software industry, placing it in the top 9.6%.
Is Open Text's Operating Margin % too high?
Open Text's current Operating Margin % of 25.10% is 28% above median its 10-year median of 19.61. Over the past 10 years, this metric has ranged from a low of 15.28 to a high of 23.18. The Software industry median Operating Margin % is 3.92. Open Text's value of 25.10% is 540.3% above this industry median. Based on the distribution chart, Open Text ranks #272 out of 2821 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 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Open Text's Operating Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Open Text ranks #272 out of 2821 companies for Operating Margin %. This places Open Text in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.92. Open Text's value of 25.10% is 540.3% above this benchmark. Historically, Open Text's own Operating Margin % has ranged from 15.28 to 23.18 over the past decade. While the company's 10-year median is 19.61 vs. the industry median of 3.92, 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 Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.92, based on 2,821 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current Operating Margin % of 25.10% is 540.3% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Open Text and its competitors. For the Software industry, the median Operating Margin % is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current Operating Margin % is 25.10%, which is 28% above median its own 10-year median of 19.61. 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 (OTEX) is currently considered Modestly Undervalued. The stock's GF Value™ is $31.17, compared to a current price of $24.93 — trading 20% below its estimated fair value. The current Operating Margin % is 25.10%, which is 28% above median its 10-year median of 19.61 and 540.3% above the Software industry median of 3.92. Open Text's overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Open Text (OTEX), the current Operating Margin % is 25.10% as of Jun. 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 (OTEX) Overvalued in 2026?
Based on GuruFocus' analysis, Open Text stock appears to be undervalued.
The current stock price of $24.93 is trading 20% below its estimated GF Value™ of $31.17.
GuruFocus considers Open Text to be Modestly Undervalued.
Key valuation signals for OTEX:
Operating Margin %: 25.10% (28% above median its 10-year median of 19.61)
GF Value™: $31.17 vs. price of $24.93 (20% below fair value)
Industry Position: 540.3% above the Software median (#272 of 2821)
No single metric tells the full story. See the 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.
83GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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