Is Open Text Corporation (NASDAQ:OTEX) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Open Text Corporation at current levels.
A boring Canadian content management business trading at 5.2x forward earnings with $837M free cash flow. The market quit caring. We didn't.
Where OTEX is headed
Open Text sits in a strange spot for a $5.7B software company. It throws off $837M in free cash flow, runs a 76.5% gross margin, and trades at 5.2x forward earnings. The market is treating it like a melting ice cube. The numbers say it's a cash machine the market has stopped paying attention to. By mid-2027, we think the story looks different. Not because revenue suddenly accelerates (it probably doesn't, next year's top line is forecast to shrink 0.3%), but because the cash keeps coming, debt keeps falling, and at some point a buyer notices that an enterprise content management business with deep SAP, Google Cloud, AWS, Microsoft, Oracle and Salesforce integrations is genuinely hard to replace inside a Fortune 500 customer.
Read the full Compass Direction on OTEX
The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios (around $25.38).
See the full OTEX analysisGet calls like this, free
Join the Alexandria e-letter for forward-looking verdicts, earnings intelligence, and the contrarian reads the crowd misses. Twice a week, no noise.
Free forever. Unsubscribe anytime. We never share your email.
Frequently asked questions
Is Open Text Corporation (NASDAQ:OTEX) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Open Text Corporation at current levels. A boring Canadian content management business trading at 5.2x forward earnings with $837M free cash flow. The market quit caring. We didn't.
What is OTEX's Compass Score?
Open Text Corporation scores 90/100 on Alexandria's Compass, placing it in the "True North" tier. Scores blend eight factors and update weekly.
What is the price target for OTEX?
Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the OTEX page.
Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.