Filing Flows › Open Text (OTEX) › Q1 FY26
Open Text (OTEX) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Nov 5, 2025
Open Text (OTEX) reported revenue of $1.3B for the first quarter fiscal 2026 (Q1 FY26), +2% from a year earlier and -2% from the quarter before. Operating margin was 21.0%, net earnings $147M (11.4% of revenue).
Open Text, Q1 FY26: revenue $1.3B (+2% year over year), operating margin 21.0%, net earnings $147M, operating cash flow $148M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.3B | -2% | +2% |
| Gross profit | $938M | -1% | +3% |
| Operating profit | $270M | +49% | +31% |
| Net earnings | $147M | +408% | +74% |
| Operating cash flow | $148M | -7% | — |
| Free cash flow | $101M | -18% | — |
What changed
Revenue was $1.3B in Q1 FY26, up 2% year over year and down 2% from the previous quarter. Cloud services and subscriptions was the largest line at 38% of revenue. Cloud services and subscriptions added $0.03B year over year (up 6%), 144% of the total change. Cybersecurity (SMB & Consumer) declined 5%.
Gross margin was 72.8%, up 1.0 points from a year earlier. Operating profit was $0.27B, a 21.0% margin (up 4.7 points year over year). Of the extra revenue versus a year earlier, 333% reached operating profit, above the 16% margin then. Operating expenses fell 5% while revenue rose 2%. Net earnings were $0.15B, up 74% year over year. The effective tax rate was 21.1%.
Operating cash flow was $0.15B, 101% of net earnings. Non-cash charges added back $0.02B of share-based compensation. Working capital and other items used $0.02B. Capital expenditures of $0.05B left free cash flow of $0.10B.
Questions
What was Open Text's revenue in the first quarter fiscal 2026?
Open Text (OTEX) reported revenue of $1.3B for the first quarter fiscal 2026 (Q1 FY26), +2% from a year earlier and -2% from the quarter before.
Was Open Text profitable in the first quarter fiscal 2026?
Operating profit was $270M (21.0% of revenue) and net earnings $147M.
Source: Open Text 10-Q on SEC EDGAR.