OpenText Q3 Revenue Climbs 2.2% to $1.283B as Cloud Revenue Jumps 6.6%
OpenText posted Q3 revenue of $1.283 billion, up 2.2% year-over-year, driven by cloud revenue growth of 6.6% to $493 million. GAAP net income surged 86% to $173 million for a 13.5% margin while free cash flow reached $305 million, supporting $247 million in share repurchases.
1. Q3 Revenue and Profit
OpenText reported total revenue of $1.283 billion for the quarter ended March 31, 2026, a 2.2% increase year-over-year. Cloud services and subscriptions revenue rose 6.6% to $493 million, marking 21 consecutive quarters of cloud growth.
2. Earnings and Margins
GAAP net income doubled to $173 million, delivering a 13.5% net income margin, while non-GAAP net income reached $250 million, a 15.9% increase. Adjusted EBITDA was $438 million, representing a 34.1% margin, up from 32.2% a year ago.
3. Cash Flow and Capital Returns
Operating cash flow totaled $355 million and free cash flow was $305 million, reflecting year-over-year declines of 11.8% and 18.4% respectively. The company returned $313 million to shareholders, including $247 million in share repurchases and $66 million in dividends, reducing shares outstanding by 6.7%.
4. Leadership Transition
Ayman Antoun officially assumed the role of CEO on April 20, 2026, bringing renewed focus on disciplined execution and client outcomes. The leadership team highlighted ongoing investments in enterprise cloud and data security solutions to drive sustainable growth.