Open Text (OTEX) Q3 Earnings Surpass Estimates

Core Viewpoint - Open Text (OTEX) reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.81 per share, but down from $0.94 per share a year ago, indicating a 12.77% year-over-year decline in earnings [1][2] Financial Performance - The company posted revenues of $1.25 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.04% and down from $1.45 billion year-over-year, reflecting a 13.79% decline [2] - Over the last four quarters, Open Text has surpassed consensus EPS estimates three times, but has only topped revenue estimates once [2] Stock Performance - Open Text shares have decreased approximately 4.1% since the beginning of the year, while the S&P 500 has declined by 5.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.92 on revenues of $1.34 billion, and for the current fiscal year, it is $3.86 on revenues of $5.2 billion [7] - The trend of estimate revisions for Open Text is mixed, which may change following the recent earnings report [6] Industry Context - The Computer - Software industry, to which Open Text belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Synopsys (SNPS), another company in the same industry, is expected to report quarterly earnings of $3.39 per share, reflecting a year-over-year increase of 13% [9]