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Open Text (OTEX) Q2 FY26 earnings results (second quarter fiscal 2026)

10-Q filed Feb 5, 2026

Open Text (OTEX) reported revenue of $1.3B for the second quarter fiscal 2026 (Q2 FY26), -0.6% from a year earlier and +3% from the quarter before. Operating margin was 22.0%, net earnings $168M (12.7% of revenue).

Revenue$1.3B
Year over year-0.6%
Quarter over quarter+3%
Operating margin22.0%
Net earnings$168M

Open Text, Q2 FY26: revenue $1.3B (-0.6% year over year), operating margin 22.0%, net earnings $168M, operating cash flow $319M. The chart follows the revenue to costs, profit and cash.

Q2 FY26AmountQ/QY/Y
Revenue$1.3B+3%-0.6%
Gross profit$982M+5%+0.4%
Operating profit$292M+8%-1%
Net earnings$168M+15%-27%
Operating cash flow$319M+116%-8%
Free cash flow$279M+176%-9%

What changed

Revenue was $1.3B in Q2 FY26, down 1% year over year and up 3% from the previous quarter. Cloud services and subscriptions was the largest line at 36% of revenue. Cybersecurity (Enterprise) lost $0.02B year over year (down 10%), 236% of the total change.

Gross margin was 74.0%, up 0.7 points from a year earlier. Operating profit was $0.29B, a 22.0% margin (down 0.2 points year over year). Operating expenses grew 1% against a revenue fall of 1%. The fastest-growing cost line was General & admin (+11%). Net earnings were $0.17B, down 27% year over year. The effective tax rate was 22.0%.

Operating cash flow was $0.32B (down 8% year over year), 190% of net earnings. Non-cash charges added back $0.02B of share-based compensation. Working capital and other items added $0.13B. Capital expenditures of $0.04B left free cash flow of $0.28B.

Questions

What was Open Text's revenue in the second quarter fiscal 2026?

Open Text (OTEX) reported revenue of $1.3B for the second quarter fiscal 2026 (Q2 FY26), -0.6% from a year earlier and +3% from the quarter before.

Was Open Text profitable in the second quarter fiscal 2026?

Operating profit was $292M (22.0% of revenue) and net earnings $168M.

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Source: Open Text 10-Q on SEC EDGAR.