AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Open Text Increases Quarterly Dividend by 5% to $0.275 per Share
ByAinvest
Thursday, Aug 7, 2025 4:57 pm ET1min read
GS--
The dividend will be payable on September 19, 2025, for shareholders of record on September 5, with an ex-dividend date of September 5, 2025 [1]. This marks the latest in a series of dividend adjustments by Open Text, which has an annual dividend of $1.05 per share, with a yield of 3.73% [2].
The dividend hike is part of Open Text's broader strategy to enhance shareholder value amidst challenging market conditions. The company has been facing scrutiny over its Q3 2025 earnings, which saw a 13.3% year-over-year revenue decline [3]. Despite this, Open Text has maintained a robust operational efficiency with an adjusted EBITDA margin of 31.5% and a net margin of 12.55% [3].
The company's pivot to an AI-first strategy has been both a driver of growth and a source of cost pressures. Open Text has achieved 17 consecutive quarters of organic cloud revenue growth, positioning it to capitalize on the $1.8 trillion global AI market [3]. However, the integration of AI requires substantial R&D investment, which has the potential to strain margins in the short term [3].
Open Text has also implemented a cost-saving plan, including $400 million in annualized cost savings and 1,600 job cuts, to stabilize its financials [3]. The company aims to balance these cost cuts with retaining top talent in AI and cloud engineering, a critical aspect of its long-term strategy.
The stock currently trades at a discount to its 52-week high of $34.20, reflecting investor skepticism. However, Goldman Sachs' increased stake in the company suggests institutional confidence in its strategic pivot [3]. The upcoming Q4 2025 earnings report will provide further insight into Open Text's financial resilience and strategic direction.
References:
[1] https://seekingalpha.com/news/4481942-open-text-raises-dividend-by-5-to-0275
[2] https://stockanalysis.com/stocks/otex/dividend/
[3] https://www.ainvest.com/news/open-text-q4-2025-earnings-report-buying-opportunity-ai-growth-restructuring-challenges-2508/
OTEX--
Open Text has raised its quarterly dividend by 4.8% to $0.275 per share. The forward yield is 3.91%. The dividend is payable on September 19 for shareholders of record on September 5, with an ex-dividend date of September 5.
Open Text Corporation (OTEX) has announced a significant increase in its quarterly dividend, raising it by 4.8% to $0.275 per share. This move comes as the company continues to navigate through a period of revenue decline and strategic restructuring. The forward yield, following this increase, stands at 3.91% [1].The dividend will be payable on September 19, 2025, for shareholders of record on September 5, with an ex-dividend date of September 5, 2025 [1]. This marks the latest in a series of dividend adjustments by Open Text, which has an annual dividend of $1.05 per share, with a yield of 3.73% [2].
The dividend hike is part of Open Text's broader strategy to enhance shareholder value amidst challenging market conditions. The company has been facing scrutiny over its Q3 2025 earnings, which saw a 13.3% year-over-year revenue decline [3]. Despite this, Open Text has maintained a robust operational efficiency with an adjusted EBITDA margin of 31.5% and a net margin of 12.55% [3].
The company's pivot to an AI-first strategy has been both a driver of growth and a source of cost pressures. Open Text has achieved 17 consecutive quarters of organic cloud revenue growth, positioning it to capitalize on the $1.8 trillion global AI market [3]. However, the integration of AI requires substantial R&D investment, which has the potential to strain margins in the short term [3].
Open Text has also implemented a cost-saving plan, including $400 million in annualized cost savings and 1,600 job cuts, to stabilize its financials [3]. The company aims to balance these cost cuts with retaining top talent in AI and cloud engineering, a critical aspect of its long-term strategy.
The stock currently trades at a discount to its 52-week high of $34.20, reflecting investor skepticism. However, Goldman Sachs' increased stake in the company suggests institutional confidence in its strategic pivot [3]. The upcoming Q4 2025 earnings report will provide further insight into Open Text's financial resilience and strategic direction.
References:
[1] https://seekingalpha.com/news/4481942-open-text-raises-dividend-by-5-to-0275
[2] https://stockanalysis.com/stocks/otex/dividend/
[3] https://www.ainvest.com/news/open-text-q4-2025-earnings-report-buying-opportunity-ai-growth-restructuring-challenges-2508/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc's editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet