Open Text (OTEX) Q1 FY2027 earnings: revenue $1.2 billion, down 4.0% on the year

Open Text Corp. (OTEX) reported revenue of $1.2 billion for Q1 FY2027, the quarter ended 30 September 2026, down 4.0% on the same quarter a year earlier. Net income was $155 million, up 5.9% on the year, and diluted earnings per share $0.64. The figures are the company's own, from the 10-Q it filed with the SEC on 5 November 2026.

Revenue

$1.2 billion

-4.0% on the year · -8.3% on the quarter

Q2 FY2025Q1 FY2027

Operating margin

20.3%

21.0% a year earlier

Q2 FY2025Q1 FY2027

Net income

$155 million

+5.9% on the year · -0.3% on the quarter

Q2 FY2025Q1 FY2027

Diluted EPS

$0.64

+10.3% on the year · 0.0% on the quarter

Q2 FY2025Q1 FY2027

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 1 kept.

Total revenue fell 4.0%: Total revenues were $1.237 billion, down 4.0% Y/Y. Excluding divestitures and in constant currency, the decline was 1.7%.
Core revenue grew 2.4%: Core revenues, covering Content, Business Network, ITOM and Cybersecurity (Enterprise), were $864 million, up 2.4% Y/Y and 2.7% in constant currency.
Core Cloud revenue up 11.2%: Core Cloud revenues were $339 million, up 11.2% Y/Y and 11.7% in constant currency.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q1 FY2027	Q4 FY2026	Q1 FY2026	On the quarter	On the year
Revenue	1,237	1,349	1,288	-8.3%	-4.0%
Cost of revenue	331	338	351	-1.9%	-5.6%
Gross profit	906	1,011	938	-10.5%	-3.4%
Gross margin	73.2%	75.0%	72.8%
Research and development	142	149	169	-4.7%	-16.0%
Operating income	251	320	270	-21.5%	-7.1%
Operating margin	20.3%	23.7%	21.0%
Pre-tax income	199	251	186	-20.6%	+7.1%
Income tax	43.7	94.8	39.2	-53.9%	+11.4%
Effective tax rate	22.0%	37.8%	21.1%
Net income	155	156	147	-0.3%	+5.9%
Net margin	12.6%	11.5%	11.4%
Diluted EPS	$0.64	$0.64	$0.58	0.0%	+10.3%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q1 FY2027	Q4 FY2026	Q1 FY2026	On the quarter	On the year
Operating cash flow	172	186	148	-7.3%	+16.6%
Capital expenditure	33.8	63.8	46.5	-47.1%	-27.5%
Free cash flow	139	122	101	+13.6%	+36.8%
Free cash flow margin	11.2%	9.0%	7.9%
Cash from investing	-33.1	89.1	-45.0
Cash from financing	-112	-570	-176
Share-based compensation	19.7	21.8	17.7	-9.9%	+11.4%
Buybacks	30.0	11.8	108	+153.6%	-72.1%
Dividends paid	66.5	65.3	68.2	+1.7%	-2.6%
Dividend per share	$0.28	n/a	$0.28		+1.8%
Diluted shares, weighted	242m	243m	254m	-0.2%	-4.6%
Shares outstanding at period end	242m	242m	252m	-0.3%	-4.1%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q1 FY2027	Q4 FY2026	Q1 FY2026	On the quarter	On the year
Shareholders' equity	4,109	4,014	3,951	+2.4%	+4.0%
Non-controlling interest	2.0	2.0	1.8	+2.7%	+14.2%
Debt	5,766	5,770	6,375	-0.1%	-9.5%
Operating lease liabilities	138	138	182	-0.4%	-24.2%
Finance lease liabilities	n/a	0.0	0.1
Other liabilities	2,909	3,182	2,966	-8.6%	-1.9%
Total liabilities and equity	12,924	13,107	13,475	-1.4%	-4.1%
Fixed assets	524	522	371	+0.4%	+41.4%
Goodwill	7,327	7,327	7,442	-0.0%	-1.5%
Intangible assets	1,376	1,475	1,853	-6.7%	-25.7%
Cash and equivalents	983	956	1,087	+2.9%	-9.5%
Receivables	663	751	591	-11.7%	+12.3%
Other assets	2,050	2,075	2,132	-1.2%	-3.8%
Total assets	12,924	13,107	13,475	-1.4%	-4.1%

Questions

What was Open Text's revenue in Q1 FY2027?

Open Text (OTEX) reported revenue of $1.2 billion for Q1 FY2027, the quarter ended 30 September 2026, down 4.0% on the same quarter a year earlier.

How much did Open Text earn in Q1 FY2027?

Net income for Q1 FY2027 was $155 million, up 5.9% on the year, and diluted earnings per share $0.64.

When did Open Text report Q1 FY2027 results?

Open Text filed its 10-Q for the quarter ended 30 September 2026 with the SEC on 5 November 2026.

Quarterly results, the last 20 quarters

	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024 †	Q2 FY2024 †	Q3 FY2024 †	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027
Revenue	877	882	902	852	897	1,245	1,491	1,425	1,535	1,447	1,362	1,269	1,334	1,254	1,311	1,288	1,327	1,283	1,349	1,237
Cost of revenue	261	274	269	258	262	370	427	407	406	391	374	359	357	356	363	351	345	345	338	331
Gross profit	616	608	634	594	636	875	1,064	1,018	1,129	1,056	988	910	978	898	948	938	982	937	1,011	906
Gross margin	70%	69%	70%	70%	71%	70%	71%	71%	74%	73%	73%	72%	73%	72%	72%	73%	74%	73%	75%	73%
R&D	104	118	119	110	110	211	250	226	213	227	205	191	181	197	187	169	158	171	149	142
Operating income	193	132	138	146	185	64.0	121	213	254	227	193	206	296	209	182	270	292	201	320	251
Operating margin	22%	15%	15%	17%	21%	5%	8%	15%	17%	16%	14%	16%	22%	17%	14%	21%	22%	16%	24%	20%
Pre-tax income	128	116	97.2	-83.3	309	45.2	-49.9	91.3	45.8	104	488	86.3	281	104	11.3	186	215	207	251	199
Tax rate	31%	35%	-5%	n/a	16%	-27%	n/a	11%	18%	6%	49%	2%	18%	10%	-156%	21%	22%	17%	38%	22%
Net income	88.3	74.7	102	-117	258	57.6	-48.7	80.9	37.7	98.3	248	84.4	230	92.8	28.8	147	168	173	156	155
Net margin	10%	8%	11%	-14%	29%	5%	-3%	6%	2%	7%	18%	7%	17%	7%	2%	11%	13%	13%	12%	13%
Diluted EPS	$0.32	$0.28	$0.38	-$0.43	$0.96	$0.21	-$0.18	$0.30	$0.14	$0.36	$0.91	$0.32	$0.87	$0.35	$0.11	$0.58	$0.66	$0.70	$0.64	$0.64
Operating cash flow	217	324	252	132	195	337	115	47.1	351	385	185	-77.8	348	402	158	148	319	355	186	172
Capital expenditure	10.6	17.6	38.2	36.3	32.2	31.2	24.1	37.5	45.2	36.5	40.0	39.3	41.3	28.4	34.2	46.5	39.2	49.7	63.8	33.8
Free cash flow	206	306	214	95.6	163	306	91.2	9.6	305	348	145	-117	307	374	124	101	279	305	122	139
Buybacks	n/a	45.1	n/a	n/a	n/a	0.0	n/a	0.0	0.0	0.0	150	87.4	66.0	115	145	108	50.0	247	11.8	30.0
Dividends paid	59.7	59.1	59.0	64.7	64.9	64.9	65.1	67.0	66.4	67.3	66.7	69.1	68.3	67.9	66.3	68.2	68.5	66.3	65.3	66.5
Shares outstanding	271m	270m	270m	270m	270m	270m	271m	271m	272m	273m	268m	266m	264m	260m	255m	252m	252m	242m	242m	242m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 September 2026, filed 5 November 2026: the filing.