Open Text stock reports USD 1 billion debt refinancing

Published on 10/08/2026 at 00:15 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Open Text stock traded at USD 23.32 on October 7, 2026, up 2.69 percent. Q4 revenue rose 2.9 percent to USD 1.35 billion, while adjusted EPS reached USD 1.23.

OTEX, CA6837151068, Illustration mit AI erstellt.

Open Text (ISIN CA6837151068) was trading at USD 23.32 on Nasdaq on October 7, 2026 at 3:13 p.m. ET, up 2.69 percent from the prior close. The company completed a USD 1.0 billion senior secured notes offering on October 1, 2026, extending its revolving credit facility maturity to October 1, 2031, according to PR Newswire.

Debt refinancing resets maturities

The financing comprised USD 500 million of 6.700 percent senior secured notes due 2031 and USD 500 million of 7.150 percent notes due 2033. Open Text said the proceeds and cash on hand would fund the redemption of USD 1.0 billion of notes due 2027 and purchases of up to USD 300 million of notes due 2028, with both transactions expected to settle on October 2, 2026.

The structure shifts near-term refinancing pressure into longer maturities, but it also leaves the company carrying high-cost secured debt. The key investor question is whether cash generation can support debt reduction while management funds its growth plan.

Cloud growth leads the latest results

In fiscal Q4 2026, total revenue increased 2.9 percent year over year to USD 1.35 billion, while total cloud revenue rose 6.0 percent to USD 503 million, according to Benzinga. Cloud revenue in the core portfolio advanced 10.7 percent to USD 341 million, making the cloud mix the clearest growth driver in the quarter.

Non-GAAP diluted EPS rose 26.8 percent year over year to USD 1.23 in Q4 fiscal 2026. For fiscal 2027, management guided to reported revenue of USD 5.135 billion to USD 5.185 billion, core revenue growth of 2 percent to 3 percent in constant currency and core cloud growth of 8 percent to 10 percent.

Analyst target stays above the share price

MarketBeat reported on October 7, 2026 that Zacks Research upgraded Open Text from Strong Sell to Hold. The broader consensus was Hold across 13 analysts, with three Buy ratings and ten Hold ratings, and an average price target of USD 30.95.

That consensus target lies 32.7 percent above the USD 23.32 Nasdaq price. The published target range ran from USD 27.00 to USD 30.95, while the 52-week range extended from USD 19.78 to USD 39.90, leaving the shares 41.6 percent below the yearly high.

Open Text stock remains below its yearly high

Open Text stock was trading at USD 23.32 on Nasdaq on October 7, 2026, with volume of 730,900 shares and a market capitalization of USD 5.4 billion. The refinancing, cloud expansion and fiscal 2027 investment plan now frame the valuation debate more clearly than the quarterly headline alone.