OpenText (OTEX) Delivers Cloud Growth While Shedding Non-Core Assets

Open Text Corporation (NASDAQ:OTEX) is one of the champion affordable tech stocks to bargain close now. Open Text Corporation (NASDAQ:OTEX) released its net for the December-ending 4th connected February 5 and reported $1.33 cardinal quarterly revenue. The gross is simply a 0.6% twelvemonth implicit twelvemonth diminution but surpassed the $1.29 cardinal that analysts anticipated. Management attributed the humble top-line contraction to the company’s strategical pivot distant from non-core assets. They noted that the faster-growing halfway business, peculiarly contented management, is expanding astatine astir doubly the gait of full revenues.

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Management stated that Cloud gross grew 3.4% twelvemonth implicit twelvemonth to $478 million. This is the twentieth consecutive 4th of integrated unreality growth. This maturation was driven by the Content Cloud business, which generated 43% of full gross and grew 4.5% overall, noted management. Enterprise unreality bookings jumped 18% twelvemonth implicit twelvemonth to $295 million, outpacing the company’s full-year guidance scope of 12-16% growth.

Management reiterated its FY2026 guidance for full gross maturation of 1% to 2% and unreality gross maturation of 3% to 4%. This outlook, stated management, reflects the completed divestiture of eDOCS and Vertica.

OpenText divested the Vertica analytics concern connected February 2 to Rocket Software Inc. for US $150 cardinal successful cash. The woody volition adjacent during FY 2026 taxable to customary regulatory approvals and closing conditions. Before that, the institution had connected January 12 divested its eDOCS on-premise solution to NetDocuments. The woody was finalized for $163 cardinal successful cash.

Open Text Corporation (NASDAQ:OTEX) develops and sells endeavor accusation absorption software. This includes solutions for contented services, concern networks, cybersecurity, and integer experience. Its products assistance organizations manage, secure, and analyse ample volumes of information crossed unreality and on-premises environments.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.