Open Text stock (CA6837151068): Q3 earnings, Vertica sale and steady 2026 guidance in focus

Open Text has reported higher third-quarter revenue and net income, completed the sale of its Vertica analytics unit and reaffirmed modest 2026 revenue growth guidance, keeping its focus on cloud and AI while returning cash through a regular dividend.

Open Text has combined a solid third-quarter earnings report with a portfolio move and steady guidance, after posting higher revenue and net income, closing the sale of its Vertica analytics business and reiterating a modest 2026 revenue growth outlook of 1% to 2%, according to coverage of its early May 2026 update from Sahm Capital as of 05/16/2026 and a separate earnings summary from Simply Wall St as of 05/14/2026.

As of: 18.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: OTEX
• Sector/industry: Enterprise software / information management
• Headquarters/country: Waterloo, Canada
• Core markets: North America, Europe and global enterprise customers
• Key revenue drivers: Cloud and subscription software, information management and security solutions
• Home exchange/listing venue: Nasdaq (ticker: OTEX); Toronto Stock Exchange (ticker: OTEX)
• Trading currency: USD on Nasdaq; CAD on TSX

Open Text: recent earnings, Vertica sale and dividend update

In its fiscal third quarter of 2026, reported in early May 2026, Open Text delivered revenue of about US$1,282.5 million, up from roughly US$1,254.36 million in the same quarter a year earlier, while net income increased to around US$172.65 million, according to an earnings discussion summarized by Simply Wall St as of 05/14/2026.

The company framed this performance as evidence that its cloud and information management strategy is gaining traction, even as it continues to work through integration and cost initiatives following earlier acquisitions, based on commentary cited by Sahm Capital as of 05/16/2026.

Alongside the earnings release, Open Text confirmed that it has completed the sale of its Vertica analytics business, a move that management has positioned as a sharpening of focus on core information management and cloud operations and a source of proceeds that can be used to reduce debt, according to the same Sahm Capital report dated mid-May 2026.

Despite shedding Vertica, which contributed an estimated US$30 million of revenue that will no longer be part of the group, Open Text reiterated its 2026 financial outlook, guiding for revenue growth in a narrow range of about 1% to 2% after adjusting for the divested sales, as referenced in the Sahm Capital analysis released on 05/16/2026.

The company also kept its capital return policy in place, confirming a quarterly dividend of US$0.2750 per share to be paid on June 19, 2026, which implies an annualized payout of US$1.10 per share if the rate is maintained, according to details highlighted by Sahm Capital as of 05/16/2026.

The maintenance of the dividend, alongside ongoing debt reduction plans, underlines management’s emphasis on balancing shareholder returns with a gradual improvement in the balance sheet, an approach that could be of interest to US investors following mature software names on Nasdaq.

Open Text: core business model

Open Text positions itself as an enterprise information management specialist, offering software that helps organizations capture, store, manage and analyze critical business information across structured and unstructured data, a positioning also described in a profile from Ad-hoc-news.de as of 04/30/2026.

The company’s portfolio spans content services, business network solutions, cybersecurity and endpoint protection, as well as analytics and automation tools that support compliance, archiving and workflow management for large enterprises and public-sector clients, according to the same April 2026 overview of its operations.

Over recent years Open Text has been placing greater emphasis on cloud-based delivery, including private and public cloud deployments, and has framed itself as a “cloud and AI” business that layers artificial intelligence and machine learning capabilities on top of its information management suite, as reflected in a corporate description compiled by MarketBeat as of 05/15/2026.

Its software is typically sold on a subscription or maintenance basis, and often becomes embedded in mission-critical processes such as document management, enterprise content workflows, digital experience management and secure data exchange between trading partners, which can lead to high customer retention rates in line with broader enterprise software industry dynamics.

Many of Open Text’s customers operate in regulated industries such as financial services, healthcare, energy and government, where long implementation cycles and compliance requirements make switching costs relatively high, helping to support recurring revenue streams once the company’s systems are in place.

Main revenue and product drivers for Open Text

The recent third-quarter revenue of roughly US$1.28 billion, up from about US$1.25 billion in the prior-year period, underscores the importance of both cloud-based services and on-premise software maintenance as key drivers of the group’s top line, according to the May 2026 earnings recap from Simply Wall St as of 05/14/2026.

Within that revenue base, management has indicated that cloud and subscription revenues are gaining share over traditional license sales, reflecting a broader industry shift toward recurring models, although the company still derives material income from maintenance and professional services built around its installed base, per the operational breakdown discussed by Ad-hoc-news.de as of 04/30/2026.

Open Text’s information management platform, which includes content management, records archiving and digital experience solutions, remains central to its revenue, while the company’s business network offerings help customers manage secure data flows and transactions across supply chains, contributing transaction-based and usage-related income streams.

In the security and operations space, Open Text supplies cybersecurity, digital investigation and endpoint protection tools, which the company has been integrating with its core information management products to create cross-selling opportunities, especially among existing enterprise clients looking to consolidate vendors and simplify their IT environments.

The sale of the Vertica analytics unit represents a rebalancing of the product portfolio; while Vertica had provided database analytics solutions, management chose to exit this non-core segment to focus capital and attention on the broader information management and cloud platform, and to reduce debt, a rationale explained in the Sahm Capital commentary published on 05/16/2026.

Beyond the near-term numbers, Open Text has promoted longer-term financial ambitions, with some narratives highlighting a potential path toward around US$5.4 billion in revenue and approximately US$830.1 million in earnings by 2029, although these figures depend on execution and market conditions and are presented as illustrative projections in the earnings valuation discussion referenced by Simply Wall St as of 05/14/2026.

For US investors, the Nasdaq listing of Open Text under the ticker OTEX means the stock can be accessed in US dollars, and its combination of software subscriptions, maintenance, cloud services and a regular dividend aligns it more with mature enterprise software peers than with early-stage, high-growth software-as-a-service names.

Conclusion

Open Text’s latest quarter combines modest top-line growth with improved net income, a portfolio adjustment through the Vertica sale and a reaffirmed 2026 revenue growth range of 1% to 2%, while the continuation of its quarterly dividend underlines a commitment to shareholder returns alongside debt reduction.

For US investors following the Nasdaq-listed OTEX shares, the company offers exposure to enterprise information management, cloud services and security software, with a business profile that leans toward recurring revenues and established customer relationships but also involves ongoing restructuring and integration efforts that could affect near-term execution.

How Open Text balances investments in cloud and AI, the pace of cost savings, the integration of prior acquisitions and the performance of growth areas such as cybersecurity will likely shape its ability to reach longer-term financial ambitions and determine how the stock trades relative to other mature software names over time.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.