Open Text Corporation filed its first quarter fiscal 2027 earnings release on November 5, 2026, reporting total revenues of $1.237 billion and core cloud revenues of $339 million for the quarter ended September 30, 2026.

Key Highlights

  • Total revenues were $1.237 billion, down 4.0% year over year, or down 1.7% in constant currency excluding divestitures, according to the filing.
  • Core Cloud Revenues reached $339 million, up 11.2% year over year (11.7% in constant currency), marking 23 consecutive quarters of cloud organic growth, the company disclosed.
  • Adjusted EBITDA was $442 million, representing a margin of 35.8%, as reported in the filing.
  • GAAP diluted EPS was $0.64, up 10.3% year over year; Non-GAAP diluted EPS was $1.05, unchanged year over year.
  • Free cash flow was $139 million, up 36.8% year over year, with operating cash flows of $172 million, up 16.6% year over year.
  • Quarterly cash dividend of $0.280 per common share was declared on November 3, 2026, with a record date of December 4, 2026 and payment date of December 18, 2026.
  • Debt reduction of approximately $949 million over the past twelve months was reported, including a $1.0 billion senior secured notes offering and a $300 million tender offer completed in October 2026.

OpenText Q1 Fiscal 2027 Revenue and Profitability Details

According to the filing, Open Text Corporation (NASDAQ:OTEX, TSX: OTEX) reported total revenues of $1.237 billion for the first quarter of fiscal 2027, ended September 30, 2026, a decline of 4.0% compared to $1.288 billion in Q1 fiscal 2026. The company disclosed that cloud services and subscriptions revenues were $505 million, up 4.3% year over year. Client support revenues were $534 million, down 9.0% year over year. Annual recurring revenues totaled $1.040 billion, compared to $1.071 billion in the prior year period.

The filing reported Core Revenues of $864 million, up 2.4% year over year (2.7% in constant currency), with Core Cloud Revenues of $339 million representing an 11.2% year over year increase. GAAP-based net income attributable to OpenText was $155 million, up 5.9% year over year, while Non-GAAP net income was $254 million, down 4.5% year over year. GAAP-based operating income was $251 million, compared to $270 million in Q1 fiscal 2026. The company also disclosed that it repurchased $23 million of common shares for cancellation during the quarter.

Following the quarter end, the company disclosed it completed a $1.0 billion senior secured notes offering, using proceeds to retire its outstanding 2027 notes, and further reduced debt by $300 million through a tender offer of a portion of its outstanding 2028 notes. The filing states the net leverage ratio was 2.55x as of September 30, 2026. The company also noted it intends to host an Investor Day on February 10, 2027, in Toronto, Canada, where CEO Ayman Antoun and the Executive Leadership Team will discuss the outcome of a previously announced Enterprise Assessment.

What Was Disclosed

Open Text Corporation disclosed its Q1 fiscal 2027 financial results, including total revenues of $1.237 billion, Adjusted EBITDA of $442 million at a 35.8% margin, free cash flow of $139 million, a quarterly dividend of $0.280 per share, and post-quarter debt reduction actions totaling $1.3 billion in refinancing and repayment activity.