Open Text (NASDAQ:OTEX) is set to give its latest quarterly earnings report on Wednesday, 2025-11-05. Here's what investors need to know before the announcement.
Analysts estimate that Open Text will report an earnings per share (EPS) of $0.97.
The announcement from Open Text is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Overview of Past Earnings
In the previous earnings release, the company beat EPS by $0.16, leading to a 9.84% increase in the share price the following trading session.
Here's a look at Open Text's past performance and the resulting price change:
| Quarter | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 |
|---|---|---|---|---|
| EPS Estimate | 0.81 | 0.76 | 0.93 | 0.80 |
| EPS Actual | 0.97 | 0.82 | 1.11 | 0.93 |
| Price Change % | 10.00 | -5.00 | -6.00 | -3.00 |
Tracking Open Text's Stock Performance
Shares of Open Text were trading at $38.17 as of November 03. Over the last 52-week period, shares are up 28.79%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Views on Open Text
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Open Text.
Analysts have provided Open Text with 10 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $39.5, suggesting a potential 3.48% upside.
Peer Ratings Overview
In this comparison, we explore the analyst ratings and average 1-year price targets of Elastic, AppFolio and Cipher Mining, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Elastic, with an average 1-year price target of $117.65, suggesting a potential 208.23% upside.
- Analysts currently favor an Outperform trajectory for AppFolio, with an average 1-year price target of $312.83, suggesting a potential 719.57% upside.
- Analysts currently favor an Buy trajectory for Cipher Mining, with an average 1-year price target of $19.76, suggesting a potential 48.23% downside.
Insights: Peer Analysis
The peer analysis summary provides a snapshot of key metrics for Elastic, AppFolio and Cipher Mining, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Open Text | Neutral | -3.79% | $947.70M | 0.72% |
| Elastic | Buy | 19.53% | $318.54M | -2.59% |
| AppFolio | Outperform | 21.20% | $157.88M | 7.05% |
| Cipher Mining | Buy | 18.36% | $12.58M | -6.17% |
Key Takeaway:
Open Text ranks in the middle for Consensus rating. It is at the bottom for Revenue Growth and Gross Profit, but at the top for Return on Equity among its peers.
Unveiling the Story Behind Open Text
Open Text Corp is engaged in the design, development, marketing, and sale of Information Management software and solutions. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, and presentations). Its platform and services provide secure and scalable solutions for enterprises, SMBs, governments, and consumers around the world. The company's solutions are marketed and delivered on the OpenText Cloud Platform, which is a comprehensive Information Management platform consisting of six business clouds; Content Cloud, Cybersecurity Cloud, Application Automation Cloud, Business Network Cloud, IT Operations Management Cloud, and Analytics Cloud. Geographically, it derives maximum revenue from the United States.
Open Text: Delving into Financials
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Negative Revenue Trend: Examining Open Text's financials over 3 months reveals challenges. As of 30 June, 2025, the company experienced a decline of approximately -3.79% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Open Text's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.2% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Open Text's ROE stands out, surpassing industry averages. With an impressive ROE of 0.72%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Open Text's ROA excels beyond industry benchmarks, reaching 0.21%. This signifies efficient management of assets and strong financial health.
Debt Management: Open Text's debt-to-equity ratio surpasses industry norms, standing at 1.69. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Open Text visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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