Earnings Preview For Open Text
Benzinga Insights 9 months ago
Earnings
Open Text (NASDAQ:OTEX) is preparing to release its quarterly earnings on Thursday, 2026-02-05. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Open Text to report an earnings per share (EPS) of $1.01.
Investors in Open Text are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Past Earnings Performance
The company's EPS beat by $0.08 in the last quarter, leading to a 5.37% drop in the share price on the following day.
Here's a look at Open Text's past performance and the resulting price change:
| Quarter | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 |
|---|---|---|---|---|
| EPS Estimate | 0.97 | 0.81 | 0.76 | 0.93 |
| EPS Actual | 1.05 | 0.97 | 0.82 | 1.11 |
| Price Change % | -5.00 | 10.00 | -5.00 | -6.00 |
Analysts' Perspectives on Open Text
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Open Text.
Open Text has received a total of 4 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $36.5, the consensus suggests a potential 57.4% upside.
Analyzing Analyst Ratings Among Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Riot Platforms, Klaviyo and TeraWulf, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Riot Platforms, with an average 1-year price target of $23.0, suggesting a potential 0.82% downside.
- Analysts currently favor an Outperform trajectory for Klaviyo, with an average 1-year price target of $39.5, suggesting a potential 70.33% upside.
- Analysts currently favor an Buy trajectory for TeraWulf, with an average 1-year price target of $21.83, suggesting a potential 5.86% downside.
Key Findings: Peer Analysis Summary
In the peer analysis summary, key metrics for Riot Platforms, Klaviyo and TeraWulf are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Open Text | Neutral | 1.51% | $937.52M | 3.72% |
| Riot Platforms | Outperform | 112.57% | $70.76M | 3.07% |
| Klaviyo | Outperform | 32.24% | $234.74M | -0.04% |
| TeraWulf | Buy | 86.92% | $33.45M | -225.76% |
Key Takeaway:
Open Text ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. The company's return on equity is also in the middle compared to its peers.
About Open Text
Open Text Corp is engaged in the design, development, marketing, and sale of Information Management software and solutions. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, and presentations). Its platform and services provide secure and scalable solutions for enterprises, SMBs, governments, and consumers around the world. The company's solutions are marketed and delivered on the OpenText Cloud Platform, which is a comprehensive Information Management platform consisting of six business clouds; Content Cloud, Cybersecurity Cloud, Application Automation Cloud, Business Network Cloud, IT Operations Management Cloud, and Analytics Cloud. Geographically, it derives maximum revenue from the United States.
Financial Insights: Open Text
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Open Text's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2025, the company achieved a revenue growth rate of approximately 1.51%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 11.38%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Open Text's ROE stands out, surpassing industry averages. With an impressive ROE of 3.72%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Open Text's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.08%, the company showcases efficient use of assets and strong financial health.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.68, caution is advised due to increased financial risk.
To track all earnings releases for Open Text visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.