Open Text Corporation

NasdaqGS:OTEX Stock Report

Market Cap: US$5.7b

Open Text Future Growth

Future criteria checks 3/6

Open Text is forecast to grow earnings and revenue by 19.8% and 1.1% per annum respectively. EPS is expected to grow by 22.8% per annum. Return on equity is forecast to be 26.5% in 3 years.

Key information

19.8%

Earnings growth rate

22.76%

EPS growth rate

Software earnings growth19.3%
Revenue growth rate1.1%
Future return on equity26.50%
Analyst coverage

Good

Last updated01 May 2026

Recent future growth updates

Recent updates

Seeking Alpha • May 01

Open Text: Deep Value Software Showing Signs Of Life

Summary Open Text is repositioning around Content Cloud and AI, simplifying its portfolio, and trading at distressed-level multiples despite ongoing profitability. OTEX is executing divestitures, paying down debt, buying back shares, and increasing dividends, with Content Cloud now accounting for 43% of revenue and 18% YoY growth. Restoring revenue growth and stabilizing the top line are critical for rerating; management guides for 1-2% revenue growth in 2026, with Q3 earnings a key catalyst. I rate OTEX a Buy, as current valuation appears excessively pessimistic given cash flow generation, strategic repositioning, and visible progress in core growth areas. Read the full article on Seeking Alpha
Narrative Update • May 01

OTEX: Reset Street Expectations And Cloud Partnerships Will Shape Future Risk Reward

The analyst price target on Open Text has been reduced by $1, as analysts reset expectations following a series of lower Street targets across major firms, while still reflecting updated assumptions for revenue growth, profit margins, and future P/E multiples. Analyst Commentary Recent Street research on Open Text has centered on a series of price target reductions, with several bearish analysts resetting their models to reflect more conservative assumptions.
Narrative Update • Apr 16

OTEX: AI And Buybacks Will Support Re Rating Potential Despite Softer Assumptions

Narrative Update Analysts have trimmed their implied value for Open Text, with the updated fair value estimate moving from about $40.00 to roughly $33.09 as they factor in a higher discount rate, slightly softer revenue growth and profit margin assumptions, and a modestly lower future P/E multiple. Analyst Commentary Recent Street research on Open Text has centered on a series of reduced price targets, as analysts recalibrate their expectations for execution, growth and valuation.
Narrative Update • Apr 02

OTEX: Buybacks And Margin Discipline Will Shape Future Risk Reward

OpenText's analyst price targets have been reset lower by up to $12, as analysts factor in updated assumptions around discount rates, growth and margins, while also monitoring valuation using future P/E expectations. Analyst Commentary Recent Street research has pointed to a more cautious stance on OpenText, with several bearish analysts trimming price targets by between $3 and $12.
Narrative Update • Mar 19

OTEX: Buybacks And Margin Reset Will Shape Future Risk Reward

Open Text's updated analyst price target has been revised lower by several firms, with recent cuts ranging from $3 to $12, as analysts adjust their views using slightly higher discount rate assumptions while keeping fair value at $26.00 and modestly refining revenue growth, profit margin, and future P/E inputs. Analyst Commentary Recent Street research has clustered around lower price targets for Open Text, with cuts ranging from $3 to $12.
Narrative Update • Mar 04

OTEX: AI Execution And Margin Reset Will Shape Balanced Risk Reward

Our fair value estimate for Open Text has been revised from $35.00 to $26.00 as analysts factor in lower assumed revenue growth, a reduced profit margin outlook, and a slightly higher discount rate, partly in line with a series of recent price target cuts across the Street. Analyst Commentary Bearish analysts have been trimming their price targets for Open Text in close succession, with multiple cuts of between $3 and $12 from various firms.
Narrative Update • Feb 17

OTEX: Buyback Expansion And Cash Flow Discipline Will Support Medium Term Rebound

The analyst price target for OpenText has edged down by roughly $0.48 per share, as analysts factor in slightly higher discount rates along with modest adjustments to long term growth, margins, and future P/E assumptions following a series of target cuts from major firms. Analyst Commentary Recent Street research has centered on price target resets following prior cuts, with analysts revisiting their models for OpenText and fine tuning assumptions around growth, profitability, and valuation multiples.
Analysis Article • Feb 04

Open Text Corporation (NASDAQ:OTEX) Stock's 27% Dive Might Signal An Opportunity But It Requires Some Scrutiny

To the annoyance of some shareholders, Open Text Corporation ( NASDAQ:OTEX ) shares are down a considerable 27% in the...
Narrative Update • Feb 03

OTEX: Medium Term Earnings Plan Will Support Rebound After Softer Q2 Guidance

Analysts have trimmed their average price target on OpenText to about US$38, a cut of roughly US$12 from prior levels. They are weighing recent target reductions from TD Securities and CIBC against earlier increases from UBS and Jefferies that were tied to modest revenue and EPS upside and maintained long term guidance.
Narrative Update • Jan 20

OTEX: AI Initiatives And Buybacks Will Support Re Rating Potential

Analysts have reduced their average price target on OpenText by about $0.30 to $40.00. This reflects a combination of recent target cuts and raises as they balance modest valuation adjustments with company guidance and recent quarterly results.
Narrative Update • Jan 06

OTEX: AI And Buybacks Will Drive Renewed Attention Over The Next Year

Analysts have nudged their implied price target for OpenText slightly lower to about US$40.27 from roughly US$40.45. At the same time, several firms recently raised published targets into the US$35 to US$39 range, citing modest upside to recent results and expectations for generally solid upcoming earnings.
Narrative Update • Dec 16

OTEX: AI Expansion And Margin Execution Will Drive Balanced Risk Reward Outlook

The analyst price target for OpenText has increased to $35 from $31, as analysts factor in recent target hikes across the Street that reflect improved profit margin expectations and a slightly lower forward valuation multiple, despite modestly softer growth assumptions. Analyst Commentary Recent Street research reflects a more balanced tone on OpenText, with higher price targets tempered by a clear emphasis on execution and growth risks.
Narrative Update • Dec 02

OTEX: AI-Focused Catalysts Will Drive Renewed Attention Over The Next Six Months

Analysts have raised their average price target for Open Text by a notable margin, citing solid recent results and growing optimism surrounding the company’s evolving AI strategy and future growth prospects. Analyst Commentary Recent analyst coverage of Open Text highlights a blend of increasing confidence in the company’s growth potential and some near-term caution, particularly around execution and forecast visibility.
Narrative Update • Nov 18

OTEX: AI-Powered Developments Will Drive Attention And Renewed Momentum Ahead

Analysts have raised their average price target for Open Text to approximately $40.45 from $39.39. This change reflects an improving profit outlook, sustained FY26 guidance, and expectations for AI-driven growth catalysts over the next several months.
Analysis Article • Nov 12

Why Open Text's (NASDAQ:OTEX) Earnings Are Better Than They Seem

Despite posting healthy earnings, Open Text Corporation's ( NASDAQ:OTEX ) stock has been quite weak. Along with the...
Analysis Article • Nov 08

Open Text Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Last week, you might have seen that Open Text Corporation ( NASDAQ:OTEX ) released its first-quarter result to the...
Narrative Update • Nov 01

OTEX: AI Initiatives And New Leadership Will Drive Balanced Future Prospects

Open Text's analyst price target has increased from $37.66 to $39.39 as analysts point to improving earnings outlook, ongoing business optimization efforts, and emerging AI-driven growth catalysts behind their upward revisions. Analyst Commentary Recent street research paints a nuanced picture for Open Text, as analysts adjust their ratings and price targets in response to recent performance and evolving business prospects.
Narrative Update • Oct 18

Cloud And AI Integration Will Advance Global Market Reach

Narrative Update: OpenText Analyst Price Target Revision Analysts have raised their average price target for OpenText, reflecting growing optimism around recent management meetings, upcoming catalysts, and improvements in cloud momentum. Several targets now range from $33 to $45 per share, up notably from prior levels.
Narrative Update • Oct 04

Cloud And AI Integration Will Advance Global Market Reach

Analysts have raised their price target for Open Text from $35.90 to $37.66. This change reflects improved sentiment and recent upgrades based on expectations of AI-driven catalysts and margin expansion.
Narrative Update • Sep 19

Cloud And AI Integration Will Advance Global Market Reach

The consensus analyst price target for Open Text has edged up to $35.90, as optimism around its AI positioning, solid Q4 results, business optimization, and buybacks is partially offset by leadership uncertainty, resulting in a modest fair value increase. Analyst Commentary Bullish analysts cite OpenText’s positioning as a developing artificial intelligence play and anticipate multiple catalysts over the next six months that could draw renewed investor attention and support a clearer growth narrative.
Analysis Article • Sep 05

An Intrinsic Calculation For Open Text Corporation (NASDAQ:OTEX) Suggests It's 48% Undervalued

Key Insights Open Text's estimated fair value is US$64.44 based on 2 Stage Free Cash Flow to Equity Open Text's...
Narrative Update • Sep 04

Cloud And AI Integration Will Advance Global Market Reach

Open Text’s analyst price target was held steady at $34.80 as strong financial results and improved 2026 guidance were offset by leadership uncertainty and a lack of clarity on strategic initiatives. Analyst Commentary Bullish analysts point to strong Q4 financial performance, with revenue beating consensus and the highest sales beat since Q3 2023.
Analysis Article • Aug 12

Open Text's (NASDAQ:OTEX) Shareholders Will Receive A Bigger Dividend Than Last Year

Open Text Corporation ( NASDAQ:OTEX ) will increase its dividend from last year's comparable payment on the 19th of...
Analysis Article • Aug 04

Is Open Text (NASDAQ:OTEX) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Analysis Article • Jul 09

Open Text Corporation's (NASDAQ:OTEX) Business And Shares Still Trailing The Market

When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 19x, you may...
Analysis Article • Jun 11

Here's Why Open Text (NASDAQ:OTEX) Has Caught The Eye Of Investors

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...
Seeking Alpha • Feb 18

Open Text: Still Decent Risk Reward

Summary I rate Open Text a 'Buy' with a 1-year price target of $31.46 per share, projecting a 14.4% upside and a quarterly dividend of $0.26. OTEX's fundamentals have been choppy post-AMC divestiture, but liquidity and net margin improvements highlight potential for recovery. Key catalysts include the launch of Titanium X and a new licensing model, both expected to drive growth and margin expansion. Despite competition risks, the Company is undervalued at 1.3x P/S, with potential to trade around 2x in a positive growth environment. Read the full article on Seeking Alpha

Earnings and Revenue Growth Forecasts

NasdaqGS:OTEX - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
6/30/20285,3337321,0921,3934
6/30/20275,2666541,0181,20211
6/30/20265,21454182296711
12/31/20255,1804368781,027N/A
9/30/20255,1884989061,056N/A
6/30/20255,168436687831N/A
3/31/20255,220655709858N/A
12/31/20245,413661683840N/A
9/30/20245,613469682843N/A
6/30/20245,770465808968N/A
3/31/20245,898168754898N/A
12/31/20235,696127712850N/A
9/30/20235,058348569694N/A
6/30/20234,485150655779N/A
3/31/20233,897301778916N/A
12/31/20223,534318778903N/A
9/30/20223,514148821924N/A
6/30/20223,494397889982N/A
3/31/20223,4854769441,026N/A
12/31/20213,436493688766N/A
9/30/20213,414339757832N/A
6/30/20213,386311812876N/A
3/31/20213,319156806860N/A
12/31/20203,301901,0691,126N/A
9/30/20203,2172639821,051N/A
6/30/20203,110234882955N/A
3/31/20203,030280836904N/A
12/31/20192,935327792860N/A
9/30/20192,898324N/A842N/A
6/30/20192,869286N/A876N/A
3/31/20192,876275N/A851N/A
12/31/20182,843261N/A835N/A
9/30/20182,842242N/A812N/A
6/30/20182,815242N/A708N/A
3/31/20182,725227N/A607N/A
12/31/20172,632189N/A492N/A
9/30/20172,440149N/A433N/A
6/30/20172,2911,026N/A440N/A
3/31/20172,1111,066N/A456N/A
12/31/20161,9591,113N/A490N/A
9/30/20161,8811,156N/A506N/A
6/30/20161,824284N/A526N/A
3/31/20161,823267N/A538N/A
12/31/20151,830224N/A492N/A
9/30/20151,833211N/A477N/A
6/30/20151,852234N/A523N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OTEX's forecast earnings growth (19.8% per year) is above the savings rate (3.5%).

Earnings vs Market: OTEX's earnings (19.8% per year) are forecast to grow faster than the US market (16.6% per year).

High Growth Earnings: OTEX's earnings are forecast to grow, but not significantly.

Revenue vs Market: OTEX's revenue (1.1% per year) is forecast to grow slower than the US market (11.5% per year).

High Growth Revenue: OTEX's revenue (1.1% per year) is forecast to grow slower than 20% 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 (26.5%)

Discover growth companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/07 10:11
End of Day Share Price 2026/05/07 00:00
Earnings2025/12/31
Annual Earnings2025/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Open Text Corporation is covered by 26 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kadambari DaptardarAccountability Research Corporation
Richard TseATB Cormark Historical (Cormark Securities)
Raimo LenschowBarclays