Open Text Future Growth

Future criteria checks 4/6

Open Text's revenue is forecast to decline at 3.2% per annum while its annual earnings are expected to grow at 47.3% per year. EPS is expected to grow by 42.9% per annum. Return on equity is forecast to be 29% in 3 years.

Key information

47.3%

Earnings growth rate

42.9%

EPS growth rate

Software earnings growth	16.3%
Revenue growth rate	-3.2%
Future return on equity	29.0%
Analyst coverage	Good
Last updated	06 May 2024

Recent future growth updates

Recent updates

Open Text's (NASDAQ:OTEX) Returns On Capital Not Reflecting Well On The Business

Jan 28

Investors Interested In Open Text Corporation's (NASDAQ:OTEX) Earnings

Jan 15

An Intrinsic Calculation For Open Text Corporation (NASDAQ:OTEX) Suggests It's 42% Undervalued

Dec 07

Here's Why We Think Open Text (NASDAQ:OTEX) Is Well Worth Watching

Nov 14

Here's Why Open Text (NASDAQ:OTEX) Has A Meaningful Debt Burden

Oct 20

Open Text (NASDAQ:OTEX) May Have Issues Allocating Its Capital

Oct 07

Is There Now An Opportunity In Open Text Corporation (NASDAQ:OTEX)?

Sep 23

Here's Why Shareholders May Want To Be Cautious With Increasing Open Text Corporation's (NASDAQ:OTEX) CEO Pay Packet

Sep 08

Open Text (NASDAQ:OTEX) Is Increasing Its Dividend To $0.25

Aug 25

Open Text (NASDAQ:OTEX) Has Announced That It Will Be Increasing Its Dividend To $0.25

Aug 09

Here's Why Open Text (NASDAQ:OTEX) Has A Meaningful Debt Burden

Jul 14

Some Investors May Be Worried About Open Text's (NASDAQ:OTEX) Returns On Capital

Jun 19

What Is Open Text Corporation's (NASDAQ:OTEX) Share Price Doing?

Jun 05

Are Investors Undervaluing Open Text Corporation (NASDAQ:OTEX) By 41%?

May 10

Returns On Capital At Open Text (NASDAQ:OTEX) Have Stalled

Mar 13

Does Open Text (NASDAQ:OTEX) Have A Healthy Balance Sheet?

Feb 27

Should You Think About Buying Open Text Corporation (NASDAQ:OTEX) Now?

Feb 13

Are Investors Undervaluing Open Text Corporation (NASDAQ:OTEX) By 33%?

Feb 01

Investors Met With Slowing Returns on Capital At Open Text (NASDAQ:OTEX)

Dec 06

Does Open Text (NASDAQ:OTEX) Have A Healthy Balance Sheet?

Nov 20

Earnings and Revenue Growth Forecasts

NasdaqGS:OTEX - Analysts future estimates and past financials data (USD Millions)
Date	Revenue	Earnings	Free Cash Flow	Cash from Op	Avg. No. Analysts
6/30/2026	5,616	621	1,261	1,361	7
6/30/2025	5,370	442	610	905	11
6/30/2024	5,810	317	774	927	11
3/31/2024	5,898	168	754	898	N/A
12/31/2023	5,696	127	712	850	N/A
9/30/2023	5,058	348	569	694	N/A
6/30/2023	4,485	150	655	779	N/A
3/31/2023	3,897	301	778	916	N/A
12/31/2022	3,534	318	778	903	N/A
9/30/2022	3,514	148	821	924	N/A
6/30/2022	3,494	397	889	982	N/A
3/31/2022	3,485	476	944	1,026	N/A
12/31/2021	3,436	493	688	766	N/A
9/30/2021	3,414	339	757	832	N/A
6/30/2021	3,386	311	812	876	N/A
3/31/2021	3,319	156	806	860	N/A
12/31/2020	3,301	90	1,069	1,126	N/A
9/30/2020	3,217	263	982	1,051	N/A
6/30/2020	3,110	234	882	955	N/A
3/31/2020	3,030	280	836	904	N/A
12/31/2019	2,935	327	792	860	N/A
9/30/2019	2,898	324	784	842	N/A
6/30/2019	2,869	286	812	876	N/A
3/31/2019	2,876	275	778	851	N/A
12/31/2018	2,843	261	752	835	N/A
9/30/2018	2,842	242	713	812	N/A
6/30/2018	2,815	242	603	708	N/A
3/31/2018	2,725	227	494	607	N/A
12/31/2017	2,632	189	N/A	492	N/A
9/30/2017	2,440	149	N/A	433	N/A
6/30/2017	2,291	1,026	N/A	440	N/A
3/31/2017	2,111	1,066	N/A	456	N/A
12/31/2016	1,959	1,113	N/A	490	N/A
9/30/2016	1,881	1,156	N/A	506	N/A
6/30/2016	1,824	284	N/A	526	N/A
3/31/2016	1,823	267	N/A	538	N/A
12/31/2015	1,830	224	N/A	492	N/A
9/30/2015	1,833	211	N/A	477	N/A
6/30/2015	1,852	234	N/A	523	N/A
3/31/2015	1,863	254	N/A	526	N/A
12/31/2014	1,858	273	N/A	524	N/A
9/30/2014	1,754	252	N/A	476	N/A
6/30/2014	1,625	218	N/A	417	N/A
3/31/2014	1,478	172	N/A	347	N/A
12/31/2013	1,373	152	N/A	323	N/A
9/30/2013	1,362	160	N/A	337	N/A
6/30/2013	1,363	149	N/A	319	N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OTEX's forecast earnings growth (47.3% per year) is above the savings rate (2.4%).

Earnings vs Market: OTEX's earnings (47.3% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: OTEX's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OTEX's revenue is expected to decline over the next 3 years (-3.2% per year).

High Growth Revenue: OTEX's revenue is forecast to decline over the next 3 years (-3.2% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: OTEX's Return on Equity is forecast to be high in 3 years time (29%)

Open Text Future Growth

Future criteria checks 4/6

Key information

Recent future growth updates

Consensus EPS estimates increase by 11%, revenue downgraded

Consensus EPS estimates increase by 26%

Consensus EPS estimates fall by 32%

Consensus EPS estimates increase by 47%

Consensus EPS estimates fall by 28%

Price target increased by 7.3% to US$48.30

Recent updates

Investor sentiment deteriorates as stock falls 15%

Consensus EPS estimates increase by 11%, revenue downgraded

Open Text (NASDAQ:OTEX) Will Pay A Dividend Of $0.25

OpenText Empowers Cyber Defenders with Innovations to Outmaneuver Sophisticated Threats

Third quarter dividend of US$0.25 announced

Investors Met With Slowing Returns on Capital At Open Text (NASDAQ:OTEX)

Open Text: Decent Cash-Generating Business With Temporary Headwinds

Third quarter 2024 earnings: EPS and revenues exceed analyst expectations

Open Text Corporation (NasdaqGS:OTEX) announces an Equity Buyback for 13,643,472 shares, representing 5% for $250 million.

Open Text Corporation Announces Cloud Editions 24.2

Open Text Corporation to Report Q3, 2024 Results on May 02, 2024

Open Text (NASDAQ:OTEX) Has A Pretty Healthy Balance Sheet

Consensus EPS estimates increase by 26%

Vice Chairman recently sold US$16m worth of stock

Vice Chairman notifies of intention to sell stock

Open Text's (NASDAQ:OTEX) Soft Earnings Don't Show The Whole Picture

Consensus EPS estimates fall by 32%

Second quarter dividend of US$0.19 announced

Open Text: Buy The Dip Post Earnings After Solid Q2 Results

New minor risk - Profit margin trend

Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind

Open Text Corporation Declares Cash Dividend, Payable on March 20, 2024

Open Text's (NASDAQ:OTEX) Returns On Capital Not Reflecting Well On The Business

Investors Interested In Open Text Corporation's (NASDAQ:OTEX) Earnings

Open Text Corporation to Report Q2, 2024 Results on Feb 01, 2024

Open Text Corporation Announces Appointment of Denise Miura as SVP & President of OpenText Japan

Independent Director recently sold US$5.5m worth of stock

Independent Director recently sold US$4.4m worth of stock

An Intrinsic Calculation For Open Text Corporation (NASDAQ:OTEX) Suggests It's 42% Undervalued

Open Text Corporation Appoints Goldy Hyder to its Board of Directors

Vice Chairman notifies of intention to sell stock

Upcoming dividend of US$0.18 per share at 2.6% yield

Here's Why We Think Open Text (NASDAQ:OTEX) Is Well Worth Watching

Consensus EPS estimates increase by 47%

Open Text Corporation Declares Cash Dividend, Payable on December 20, 2023

First quarter 2024 earnings: EPS and revenues exceed analyst expectations

Here's Why Open Text (NASDAQ:OTEX) Has A Meaningful Debt Burden

OpenText AI Enables Smarter Organizations

Open Text Corporation to Report Q1, 2024 Results on Nov 02, 2023

Open Text (NASDAQ:OTEX) May Have Issues Allocating Its Capital

Insufficient new directors

Is There Now An Opportunity In Open Text Corporation (NASDAQ:OTEX)?

Here's Why Shareholders May Want To Be Cautious With Increasing Open Text Corporation's (NASDAQ:OTEX) CEO Pay Packet

New minor risk - Insider selling

Open Text (NASDAQ:OTEX) Is Increasing Its Dividend To $0.25

Open Text Corporation acquired KineMatik Ltd.

Upcoming dividend of US$0.25 per share at 2.6% yield

Consensus EPS estimates fall by 28%

Open Text (NASDAQ:OTEX) Has Announced That It Will Be Increasing Its Dividend To $0.25

Open Text Corporation Declares Quarterly Dividend, Payable on September 22, 2023

Full year 2023 earnings: EPS misses analyst expectations

Here's Why Open Text (NASDAQ:OTEX) Has A Meaningful Debt Burden

Open Text Corporation to Report Q4, 2023 Results on Aug 03, 2023

Open Text Corporation to Report Q4, 2023 Results on Aug 03, 2023

Open Text Corporation, Annual General Meeting, Sep 14, 2023

Price target increased by 7.3% to US$48.30

Some Investors May Be Worried About Open Text's (NASDAQ:OTEX) Returns On Capital

Independent Lead Director recently sold US$42k worth of stock

What Is Open Text Corporation's (NASDAQ:OTEX) Share Price Doing?

Upcoming dividend of US$0.24 per share at 2.4% yield

Insider notifies of intention to sell stock

Are Investors Undervaluing Open Text Corporation (NASDAQ:OTEX) By 41%?

Third quarter 2023 earnings: EPS and revenues exceed analyst expectations

Open Text Corporation Declares Cash Dividend, Payable on June 23, 2023

Returns On Capital At Open Text (NASDAQ:OTEX) Have Stalled

Does Open Text (NASDAQ:OTEX) Have A Healthy Balance Sheet?

Upcoming dividend of US$0.24 per share at 2.8% yield

Open Text Corporation Announces Cloud Editions 23.1

Should You Think About Buying Open Text Corporation (NASDAQ:OTEX) Now?