OpenText's first quarter 2027 earnings beat estimates despite a miss in cloud revenue

OpenText reported total revenue of $1.24 billion for the first quarter of fiscal 2027, exceeding analyst estimates of $1.22 billion. While non-GAAP diluted EPS of $1.05 significantly outperformed the $0.87 expectation, the company's total cloud revenue of $505 million fell short of the $525 million target despite representing 4.3% year-over-year growth.

Key Highlights

• Core Cloud Revenues, covering Content, Business Network, ITOM, and Cybersecurity, grew 11.2% year-over-year to $339 million.
• The company achieved an Adjusted EBITDA margin of 35.8% ($442 million), reflecting strong operational discipline and progress on cost-saving initiatives.
• Post-quarter debt management included a $1.0 billion senior secured notes offering and a $300 million debt paydown, reducing total debt by $949 million over the last 12 months.