OpenText's Q4 2025 Earnings Call: Unpacking Contradictions in Customer Demand, Maintenance Revenues, and Cloud Growth Strategy

Customer demand and behavior, maintenance revenue trends, and cloud growth and strategic focus are the key contradictions discussed in OpenText's latest 2025Q4 earnings call.



Cloud Revenue Growth:
- OpenText's cloud revenues were $475 million for Q4, up 2.1% year-over-year, marking the eighteenth sequential quarter of cloud organic growth.
- The growth was driven by AI readiness and strong demand for content and cloud services, particularly in sectors such as banking, automotive, healthcare, biotechnology, and retail.

Strong Bookings and RPO Increase:
- Cloud bookings surged to $238 million, representing 32% year-over-year growth, significantly contributing to cloud RPO growth.
- The increase in bookings and RPO reflects the company's strong product cycle and successful execution of its go-to-market strategies, including partnerships with SAP, Microsoft, and GSI firms.

Maintenance Business Improvement:
- The maintenance revenue decline rate for F '25 was 4%, improving to 3% in Q4, with expectations to cut the decline to 2% in F '26.
- This improvement is due to enhanced customer centricity, new post-sale offerings, and strategic focus on Titanium X upgrades.

Strategic Acquisitions and Divestitures:
- OpenText aims to consider divestitures that strategically optimize its business, focusing on cloud and outperforming areas.
- The company is prepared for small to medium-sized acquisitions, supported by its strong balance sheet and capital allocation strategy.