Open Text trades at a forward price-to-earnings ratio of 4.9x with a PEG of 0.05, making it attractively valued relative to its earnings beat history and 162% free-cash-flow conversion rate, but a death-cross technical pattern and high implied volatility of 77% keep near-term risk elevated.
Thesis pillars
- Deep Value Fcf Conversion↓Deteriorating
- Earnings Beat Streak↑Improving
- Piotroski Quality Signal→Stable
- +1 more pillar — see the Why tab for full reasoning
Open Text Corporation (OTEX) Stock Analysis
Recovery setup · Catalyst-Driven edge
Technology · Software - Application
Sell if holding. Analyst target reached at $24.97 — A.R:R is negative (-0.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8.
OpenText sells information management software through business clouds: Content, Cybersecurity, Business Network, DevOps, Observability and Service Management, and Analytics. Content Cloud was about 40% of fiscal 2025 total revenues, and cloud services and subscriptions are led... Read more
Sell if holding. Analyst target reached at $24.97 — A.R:R is negative (-0.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8. Chart setup: Death cross but MACD improving, RSI 82. Score 5.5/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 21d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Open Text Corporation
About Open Text Corporation
OpenText's Content Cloud generated 40% of total revenue for the year ended June 30, 2025, followed by Cybersecurity Cloud at 25%, with Business Network Cloud, DevOps Cloud, and Observability and Service Management Cloud each contributing 10% and Analytics Cloud 5%. The company completed its $6.2 billion acquisition of Micro Focus International in January 2023 and divested its Application Modernization and Connectivity business to Rocket Software for $2.275 billion in May 2024.
OpenText earns revenue from cloud subscriptions, term and perpetual software licenses, and professional and managed services across six business clouds -- Content, Cybersecurity, Business Network, DevOps, Observability and Service Management, and Analytics -- sold to Global 10,000 enterprises, SMBs, governments and consumers. Products integrate with third-party systems such as SAP S/4HANA, Salesforce and Microsoft Office 365, and the company delivers managed cloud services on partner infrastructure including Google Cloud Platform, Amazon Web Services and Microsoft Azure. OpenText serves SMB and consumer cybersecurity customers partly through a network of Managed Service Providers, while its direct sales force targets G10K accounts. The company continues to integrate the 2023 Micro Focus acquisition into its cloud and AI capabilities and has used acquisition and divestiture activity, including the 2024 AMC sale to Rocket Software, to reshape its portfolio and reduce debt by $2.0 billion.
Show full overview
OpenText's DevOps Cloud looks smaller today than its fiscal 2024 shape: the Application Modernization and Connectivity business that was sold to Rocket Software in May 2024 for $2.275 billion had made up approximately 45% of the DevOps Cloud the year before, meaning nearly half of that business cloud's revenue base was carved out in a single transaction. That kind of portfolio reshaping is occurring alongside leadership change -- in April 2026, Interim CEO James McGourlay transitioned to President, Chief Client Officer, with no successor CEO named in the filing, while President and Chief Customer Officer Paul Duggan stepped down to a Special Advisor role ahead of his July 2026 departure from the company.
See also: Technology · Software - Application
From Open Text Corporation's most recent 10-K filing, extracted October 11, 2026.
Recent developments
updated 2026-10-15Recent Developments — Open Text Corporation
Latest news
- NEWS Open Text Corp. stock rises Wednesday, outperforms market - MarketWatch — MarketWatch positive
- NEWS Open Text Corp. stock rises Wednesday, outperforms market - marketwatch.com — marketwatch.com positive
- NEWS Guardian Partners Inc. Cuts Stock Position in Open Text Corporation $OTEX - MarketBeat — MarketBeat neutral
- NEWS Open Text Corp (OTEX) Institutional Confidence - TradingKey — TradingKey neutral
- NEWS Open Text Corp. stock outperforms market despite losses on the day - MarketWatch — MarketWatch positive
Generated 2026-10-15T11:42:23Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMProductContent Cloud40%10-K Item 1: 'total revenues is comprised of 40% from Content Cloud, 25% from Cybersecurity Cloud'
Material Events(8-K, last 90d)
- 2026-04-20Item 5.02MEDIUMJames McGourlay moves from Interim CEO to President, Chief Client Officer effective Apr 20, 2026; Paul Duggan steps down as President, Chief Customer Officer, serving as Special Advisor until leaving July 1, 2026. No new CEO named in the text provided.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $24.97 — A.R:R is negative (-0.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8. Chart setup: Death cross but MACD improving, RSI 82. Prior stop was $23.57. Score 5.5/10, moderate confidence.
Take-profit target: $28.72 (-2.6% upside). Prior stop was $23.57. Stop-loss: $23.57.
Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8; Leverage penalty (D/E 1.5): -0.5.
Open Text Corporation trades at a P/E of 9.7 (forward 5.8). TrendMatrix value score: 8.3/10. Verdict: Sell.
9 analysts cover OTEX with a consensus score of 3.9/5. Average price target: $28.
What does Open Text Corporation do?OpenText sells information management software through business clouds: Content, Cybersecurity, Business Network,...
OpenText sells information management software through business clouds: Content, Cybersecurity, Business Network, DevOps, Observability and Service Management, and Analytics. Content Cloud was about 40% of fiscal 2025 total revenues, and cloud services and subscriptions are led by Business Network, Cybersecurity and Content.