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OpenText (TSX:OTEX) earnings provided little in the way of exciting investors during their third quarter report. In fact, soft full-year outlooks for 2025 led to a drop in share price by 19%.
However, despite hitting all targets, there is still some momentum underway. Today, let’s go over what investors might be missing in terms of OpenText stock and why it could still be a great time to buy.
What happened?
OpenText stock reported earnings that fell in line with estimates, with a strong overall third quarter. Total revenue came in at $1.45 billion, with annual recurring revenue at $1.15 billion as well. Cloud revenue hit $455 million, with free cash flow of $348 million as well.
Part of the growth came from the divestiture of assets that added a surge of cash to the company’s bottom line. Now that it’s complete, the company hopes to be more flexible, and expects to start up its merger and…
