Open Text Corporation (OTEX) Stock Price & How to Invest

Open Text Corporation is a Waterloo, Ontario software company that sells the plumbing enterprises use to store, govern and move their information: content management, B2B business networks, IT operations management, cybersecurity, and application delivery tooling. It trades under the same OTEX ticker on both Nasdaq and the Toronto Stock Exchange, reports in US dollars, and closes its books on June 30 rather than December 31. Roughly 19,900 employees serve clients in 42 countries. Money arrives in four streams: cloud services and subscriptions (~$1.96 billion in fiscal 2026), customer support (~$2.29 billion), software licenses (~$678 million) and professional services (~$322 million). Cloud plus support is what OpenText calls annual recurring revenue, ~$4.25 billion, about 81% of the total. The portfolio was assembled over three decades of acquisitions, the largest being Micro Focus in January 2023, and the past two years have gone into selling pieces of it back off.

The argument over the stock comes down to cash flow against shrinkage. Fiscal 2026 revenue of ~$5.25 billion rose 1.5% as reported, but that number carried a ~$136 million currency tailwind, and the company's own 10-K puts organic revenue down about 0.5% once currency and the divested eDOCS and Vertica businesses are stripped out. Customer support, still the largest single line, fell 4.8% in constant currency. Cloud grew 3.4% in constant currency and enterprise cloud bookings jumped 22.5% to ~$947 million, so the mix is turning, slowly. The cash is not in doubt: ~$1.01 billion of operating cash flow, ~$807 million of free cash flow, a 36.3% adjusted EBITDA margin, net leverage down to 2.75 times, and ~$677 million returned through dividends and buybacks. Near ~$24 a share the market pays roughly 9 times trailing GAAP earnings and ~1.1 times sales, a price that assumes the support base keeps eroding.

Organic revenue is still contracting: excluding currency and divestitures, fiscal 2026 revenue fell about 0.5%, and constant-currency annual recurring revenue was down 1.2%. Debt remains the dominant balance-sheet fact, with ~$5.77 billion outstanding against ~$956 million of cash and ~$310 million of net interest expense in fiscal 2026, including $1.0 billion of 6.90% secured notes due December 2027. The Canada Revenue Agency is contesting OpenText's transfer pricing and an intra-group intellectual property valuation; the company estimates up to ~$87.4 million of penalties, interest and provincial tax for fiscal 2012 through 2016, and says an adverse outcome for fiscal 2017 through 2021 could force a non-cash writedown of deferred tax assets of up to ~$470 million. Goodwill and acquired intangibles of ~$8.8 billion sit against ~$4.0 billion of shareholders' equity, so an impairment in any one product category would land hard on reported earnings. Generative AI cuts both ways, with a real chance it compresses demand for seat-based content and application tooling faster than Aviator can replace it.

11 analysts publish price targets on OTEX, averaging $27.95 against a $24.17 price as of August 2026, or +15.6%. The published targets run from $25.00 to $33.00, a narrow spread, and the ratings split 2 buy, 10 hold, 0 sell. Over the last six months there have been 3 raises and 5 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full OTEX forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Open Text Corporation. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Cloud growth against a shrinking support base. Cloud services and subscriptions reached ~$1.96 billion in fiscal 2026, up 3.4% in constant currency and marking a 22nd consecutive quarter of organic cloud growth, while enterprise cloud bookings rose 22.5% to ~$947 million. The most optimistic published target, $33.00, assumes this works close to its best case.

The case against. Organic revenue is still contracting: excluding currency and divestitures, fiscal 2026 revenue fell about 0.5%, and constant-currency annual recurring revenue was down 1.2%. The most pessimistic target, $25.00, is roughly what OTEX is worth if this bites instead.

Read the full bull and bear case on OTEX, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Open Text Corporation's investor relations page or your broker.

• Revenue (FY2026, TTM): ~$5.25 billion, up 1.5% reported and down ~0.5% excluding currency and divestitures
• Latest quarter (Q4 FY2026, ended June 30, 2026): Revenue ~$1.35 billion (+2.9%), GAAP diluted EPS ~$0.64, non-GAAP ~$1.23
• Full-year earnings (FY2026): Net income ~$643 million; GAAP diluted EPS ~$2.58, non-GAAP diluted EPS ~$4.42
• Free cash flow (FY2026): ~$807 million, from ~$1.01 billion of operating cash flow
• Market cap and multiple: ~$5.7 billion near ~$24 a share, roughly 9x trailing GAAP EPS and ~1.1x sales
• Balance sheet and dividend: Debt ~$5.77 billion vs ~$956 million cash, net leverage 2.75x; dividend $0.28 a quarter (~$1.12 annualized, ~4.6% yield)

Figures come from the fiscal 2026 Form 10-K and the August 6, 2026 results release, both covering the year ended June 30, 2026. OpenText is Canadian but reports in US dollars, so nothing here needs converting. The gap between ~9 times GAAP earnings and ~5.5 times management's non-GAAP earnings is mostly amortization of acquired intangibles plus restructuring charges, which is the usual accounting argument around any software roll-up.

Other names that sit close to OTEX: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get OTEX exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so OTEX sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where OTEX fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

Cheap, cash-rich and organically shrinking: OTEX is a debt-funded software roll-up whose cloud and AI push has not yet offset an eroding maintenance base.

Whether OTEX is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is OTEX a buy or a sell?, and where the stock could go from here in the OTEX stock forecast.

For income investors, whether OTEX pays a dividend and how the payout looks is covered in does OTEX pay a dividend? And to weigh OTEX against a peer, read the full side-by-side comparisons: OTEX vs IBM and OTEX vs MSFT.