OpenText Reports 3%-4% Cloud Revenue Growth and $300M Share Buyback as Company Enters New Expansion Phase

OpenText Corporation reported Q4 2025 earnings, outlining 3%-4% cloud revenue growth and a $300M share buyback plan. The company has entered a new expansion phase, having completed a divestiture of its mainframe business, a business optimization program, and introduced new AI, cloud, and security innovations. Management expects strong performance, citing the company's strongest quarter in its history.

OpenText Corporation (OTEX) reported its Q4 2025 earnings, showcasing a significant turnaround with 3%-4% cloud revenue growth and a $300 million share buyback plan. The company has entered a new expansion phase following the completion of a divestiture of its mainframe business and a business optimization program, alongside the introduction of new AI, cloud, and security innovations [1].

The company reported total revenues of $5.17 billion for the fiscal year 2025, down 10.4% year-over-year, while cloud revenues reached $1.86 billion, growing by 2.0% year-over-year [1]. Cloud bookings surged 32% in Q4, driven by the demand for the AI-driven Titanium X platform [1]. Key financial metrics included Adjusted EBITDA of $1.78 billion with a 34.5% margin and record capital returns of $683 million to shareholders [1].

OpenText announced a 5% dividend increase to $0.2750 per share and a new $300 million share repurchase program. For fiscal year 2026, the company projects 3-4% cloud revenue growth and 1-2% total revenue growth, focusing on AI, Cloud, and Security opportunities [1].

Management highlighted that fiscal 2025 included completing a material divestiture of the mainframe business, a large business optimization program, acceleration of margin opportunity, significant new AI, cloud, and security innovations, and the company’s strongest year of capital return [2]. For fiscal 2026, OpenText expects total revenue growth of 1% to 2%, total cloud revenue growth of 3% to 4%, adjusted EBITDA margin growth of 50 to 100 bps, and free cash flow growth of 17% to 20% [2].

The company announced that Cosmin Balota will serve as Interim CFO starting August 15, with a search for a permanent CFO underway. Chadwick Westlake, EVP & CFO, stated that the company achieved a strong quarter with an overall fiscal 2025 adjusted EBITDA margin of 34.5%, 50 basis points above the top end of the target range of 33% to 34% [2].

OpenText's Q4 2025 results highlighted a return to growth, particularly in the cloud and AI segments. The company’s strong financial performance and strategic execution position it well for future growth, aiming to deliver value through product innovation and expanded market presence.

References:
[1] https://www.stocktitan.net/news/OTEX/open-text-reports-fourth-quarter-and-fiscal-year-2025-financial-yjpi2ytpex72.html
[2] https://seekingalpha.com/news/4482706-opentext-outlines-3-percent-4-percent-cloud-revenue-growth-and-300m-share-buyback-as-company