Filing Flows › Open Text (OTEX) › Q1 FY27 › vs Q1 FY26
Open Text (OTEX) Q1 FY27 vs Q1 FY26 (year over year)
Open Text's revenue fell $51.5M (-4%) from $1.3B in Q1 FY26 to $1.2B in Q1 FY27. The biggest changes: Content +$28.0M (+21%); Cloud services and subscriptions +$21.0M (+4%); Cybersecurity (SMB & Consumer) −$12.5M (-9%). Gross margin 73.2% against 72.8% (+0.4 pts).
Open Text, Q1 FY27: revenue $1.2B (-4% year over year), operating margin 20.3%, net earnings $155M, operating cash flow $172M. The chart draws each line against Q1 FY26, the increases inside each band.
Margins
| Q1 FY27 | Q1 FY26 | Change | |
|---|---|---|---|
| Gross margin | 73.2% | 72.8% | +0.4 pts |
| Operating margin | 20.3% | 21.0% | -0.7 pts |
| Net margin | 12.6% | 11.4% | +1.2 pts |
| Free cash flow margin | 11.2% | 7.9% | +3.3 pts |
Every line
| Line | Q1 FY27 | Q1 FY26 | Change | % |
|---|---|---|---|---|
| Cloud services and subscriptions | $505M | $485M | $21.0M | +4% |
| Content | $163M | $135M | $28.0M | +21% |
| Business Network | $161M | $161M | $393K | +0.2% |
| Business Network | $154M | $152M | $1.6M | +1% |
| Cybersecurity (SMB & Consumer) | $128M | $140M | −$12.5M | -9% |
| License | $124M | $135M | −$10.7M | -8% |
| Revenue | $1.2B | $1.3B | −$51.5M | -4% |
| Gross profit | $906M | $938M | −$32.0M | -3% |
| Cost of revenue | $331M | $351M | −$19.5M | -6% |
| Operating profit | $251M | $270M | −$19.1M | -7% |
| Operating expenses | $655M | $668M | −$12.8M | -2% |
| Pre-tax earnings | $199M | $186M | $13.1M | +7% |
| Other expense, net | $51.8M | $84.1M | −$32.3M | -38% |
| Research & development | $142M | $169M | −$27.0M | -16% |
| Sales & marketing | $278M | $257M | $20.5M | +8% |
| General & admin | $106M | $106M | $50K | 0% |
| Other operating costs | $129M | $136M | −$6.5M | -5% |
| Net earnings | $155M | $147M | $8.6M | +6% |
| Income tax | $43.7M | $39.2M | $4.5M | +11% |
| Share-based compensation | $19.7M | $17.7M | $2.0M | +11% |
| Working capital & other | $2.7M | $16.6M | −$13.9M | -84% |
| Operating cash flow | $172M | $148M | $24.5M | +17% |
| Free cash flow (OCF − capex) | $139M | $101M | $37.3M | +37% |
| Capital expenditures | $33.8M | $46.5M | −$12.8M | -27% |
Questions
How much did Open Text's revenue grow year over year in Q1 FY27?
Open Text's revenue fell $51.5M (-4%) from $1.3B in Q1 FY26 to $1.2B in Q1 FY27.
What drove Open Text's revenue change in Q1 FY27?
Content +$28.0M (+21%); Cloud services and subscriptions +$21.0M (+4%); Cybersecurity (SMB & Consumer) −$12.5M (-9%).