Core Insights - OpenText Corporation reported total revenues of $1.33 billion for the second quarter of fiscal 2026, reflecting a year-over-year decline of 0.6% [1][3] - The company achieved cloud revenues of $478 million, marking a 3.4% increase year-over-year and maintaining 20 consecutive quarters of organic growth in cloud services [1][3] - Net income for the quarter was $168 million, down 26.9% year-over-year, with a diluted EPS of $0.66 [1][3] Financial Performance - Total revenues: $1,327 million, a decrease of 0.6% year-over-year [3][5] - Cloud revenues: $478 million, an increase of 3.4% year-over-year [3][5] - Annual recurring revenues (ARR): $1,060 million, up 0.7% year-over-year [3][5] - Adjusted EBITDA: $491 million, with a margin of 37.0% [3][5] - GAAP net income: $168 million, down 26.9% year-over-year [3][5] - Non-GAAP net income: $286 million, a decrease of 2.4% year-over-year [3][5] - Diluted EPS: GAAP $0.66, Non-GAAP $1.13 [3][5] Operational Highlights - The company reported operating cash flows of $319 million and free cash flows of $279 million [3][5] - Quarterly enterprise cloud bookings reached $295 million, reflecting an 18% increase year-over-year [3][5] - Capital returns amounted to $119 million, including $69 million in dividends and $50 million in share repurchases [3][5] Leadership and Strategic Developments - Ayman Antoun has been appointed as the new CEO, effective April 20, 2026, succeeding James McGourlay [2][13] - The company completed the divestiture of eDOCS for $163 million and Vertica for $150 million, focusing on non-core asset divestiture [2][13] - OpenText is enhancing its position in the AI-driven Enterprise Information Management market, as highlighted during the OpenText World conference [2][13]

WALTHAM, Mass., Feb. 02, 2026 (GLOBE NEWSWIRE) -- Rocket Software, a global technology leader in modernization software, today announced it has entered into a definitive agreement to acquire the Vertica analytics database from OpenText (NASDAQ: OTEX), (TSX: OTEX). Vertica is an enterprise-grade analytics database platform trusted by leading global organizations for its proven technology and industrial-strength performance for mission-critical analytical workloads. The technology sits at the center of many o ...

OpenText to Continue Focusing on Core Cloud Products for Secure, Trusted Data for Enterprise AI WATERLOO, ON, Feb. 2, 2026 /PRNewswire/ -- Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), a global leader in secure information management for AI, today announced that it has reached a definitive agreement to divest Vertica, a part of its non-core Analytics portfolio, to Rocket Software Inc., a Bain Capital portfolio company ("Rocket Software") for US$150 million in cash, before taxes, fees and other adjustme ...

Open Text Corporation (NASDAQ:OTEX) is included among the 7 Best Non-REIT Dividend Stocks to Invest in. Open Text (OTEX) Price Target Reduced by $3 Photo by Vitaly Taranov on Unsplash Open Text Corporation (NASDAQ:OTEX) develops software that helps large organizations manage information securely and put it to work across cloud, security, and AI workflows. The business leans heavily on recurring revenue from subscriptions and support, which can help smooth results when customer spending becomes uneven. ...

Core Insights - The article discusses the best non-REIT dividend stocks to invest in, highlighting the importance of dividends across various sectors beyond real estate investment trusts (REITs) [1][3] Dividend Market Overview - REITs have shown resilience in 2025, with aggregate funds from operations rising by 6.2%, net operating income increasing by 4.7%, and total dividends paid climbing by 6.3% compared to the same period in 2024, indicating strong fundamentals and disciplined capital access [2] - There is a significant demand for dividend-paying stocks, with over $1 trillion in funds and ETFs globally focusing on dividends, reflecting investors' desire for consistent and reliable income streams [3] Methodology for Stock Selection - The article identifies dividend-paying stocks outside of REITs with a yield above 3% as of January 31, and selects those with the highest number of hedge fund investors at the end of Q3 2025 [6] Company Highlights - **Open Text Corporation (NASDAQ:OTEX)**: - Dividend yield of 4.31% with 14 hedge fund holders; focuses on software for information management, heavily reliant on recurring revenue [9] - Analyst Stephanie Price from CIBC cut the price target to $37 from $40, maintaining a Neutral rating due to weaker-than-expected Q2 guidance [10] - The company plans to divest non-core business units, potentially reducing revenue by up to 20% to focus on AI-related content [12] - **NorthWestern Energy Group, Inc. (NASDAQ:NWE)**: - Dividend yield of 3.89% with 24 hedge fund holders; operates as a regulated utility providing electricity and natural gas [13] - Barclays raised its price target to $62 from $61, maintaining an Overweight rating following a solid Q3 performance with GAAP earnings of $0.62 per share [14][15] - The company is pursuing a strategic all-stock merger with Black Hills Corporation, expected to enhance its market presence [16]

Core Viewpoint - OpenText Corporation has completed the divestiture of its on-premise solution eDOCS to NetDocuments Software, Inc. for $163 million, with plans to use the proceeds to reduce outstanding debt [1][2]. Group 1: Transaction Details - The divestiture of eDOCS is part of OpenText's strategy to divest non-core assets and focus on its core business for long-term value creation [2]. - The transaction amount is $163 million in cash before taxes, fees, and other adjustments [1]. Group 2: Strategic Intent - OpenText aims to sharpen its focus on growing its core business, which is expected to accelerate long-term value creation [2]. - The company intends to utilize the net proceeds from the divestiture specifically for debt reduction [2]. Group 3: Company Overview - OpenText is recognized as a global leader in secure information management for AI, helping organizations manage their data effectively [3]. - The company's technologies are designed to convert data into contextual information, forming a knowledge base for AI applications [3].

Financial Results Announcement - OpenText Corporation will release its financial results for the second quarter of fiscal year 2026 on February 5, 2026, at approximately 4:00 p.m. ET [1] Conference Call Details - A conference call webcast will be hosted on February 5, 2026, at 5:00 p.m. ET by key executives including Tom Jenkins, James McGourlay, and Steve Rai [2] - The webcast will be accessible via the OpenText Investor Relations website and is expected to last 60 minutes [2] Company Overview - OpenText is a global leader in secure information management for AI, focusing on helping organizations protect, govern, and activate their data [3] - The company's technologies are designed to transform data into contextual information, forming a knowledge base for AI applications [3]

Summary of Key Points Core Viewpoint - Citi has lowered the price target for OpenText (OTEX) to $36 from $38 while maintaining a Neutral rating on the shares, indicating a cautious outlook on the company's performance in the current market environment [1]. Group 1: Company Adjustments - Citi adjusted its models in the application software group after discussions with management, reflecting a need to align expectations with the current market conditions [1]. Group 2: Market Environment - Companies are experiencing a stable but uncertain demand environment, with some positive impact from the reopening of the U.S. government, suggesting a mixed outlook for the sector [1]. Group 3: Investment Picks - Citi has identified Pegasystems (PEGA) as its new top pick, highlighting the company's leadership in artificial intelligence monetization [1]. - Additionally, Citi sees growth opportunities in Blackline (BL) and Workiva (WK), indicating a focus on companies with strong potential in the current market [1].

Core Points - The Annual Meeting of Shareholders for Open Text Corporation is being held virtually to enhance participation from shareholders who may not be able to attend in person [4] - The meeting includes members of the Board of Directors, management, and external auditors, indicating a comprehensive representation of the company's governance [3] - The meeting format allows for coordination among speakers located in different places and provides opportunities for online voting and questions from shareholders [4] Company Overview - Open Text Corporation is focused on engaging with its shareholders and addressing their inquiries during the annual meeting [3] - The virtual format of the meeting is a continuation of practices from previous years, aiming to facilitate broader shareholder involvement [4]

Core Point - The CGT labor union at LVMH's Moet & Chandon and Veuve Clicquot champagne units is urging staff to participate in protests to demand year-end bonuses from management [1] Group 1 - The protests are scheduled for Thursday, indicating a specific timeline for the labor action [1] - The call for protests highlights employee dissatisfaction regarding compensation, particularly year-end bonuses [1]