OpenText Increases Share Repurchase Program to US$500 Million
MWN-AI** Summary
OpenText Corporation (NASDAQ: OTEX, TSX: OTEX) has announced an increase to its share repurchase program, boosting the total authorized value from US$300 million to US$500 million. This decision reflects the company’s strong confidence in its cash flow and financial stability. The program will allow OpenText to buy back up to 24,906,456 common shares under a normal course issuer bid (NCIB), a limit that has not changed from previous approvals by the Toronto Stock Exchange.
As of January 31, 2026, OpenText has already purchased approximately US$190 million worth of shares since the start of Fiscal 2026, with around US$165 million attributed to shares bought back under the current repurchase program. The share buyback initiative is critical to OpenText's capital allocation strategy, according to CFO Steve Rai, who highlighted the importance of returning value to shareholders during this class of fiscal activity.
The NCIB is effective for a 12-month period that began on August 12, 2025, and will conclude on August 11, 2026, but may terminate earlier if the purchase limits are reached. OpenText can facilitate share repurchases through various markets, including the Toronto Stock Exchange and NASDAQ, and has an automatic share purchase plan (ASPP) in place to streamline the process.
While the company remains optimistic about its future growth and cash flow, it also cautioned that the forward-looking statements regarding financial performance contain inherent uncertainties and risks. Investors are encouraged to monitor OpenText's communications for updates regarding its share buyback program and other strategic initiatives.
MWN-AI** Analysis
OpenText's recent decision to increase its share repurchase program to US$500 million underscores the company's confidence in its financial health and future prospects. Share buybacks can be a compelling indication of a company's performance, as they typically signal that management believes the stock is undervalued and that returning capital to shareholders is a sound strategic move.
From an investment standpoint, the expansion of OpenText's repurchase program could enhance shareholder value by reducing the number of shares outstanding, which can lead to an increase in earnings per share (EPS). This is particularly relevant now as the company has already executed approximately US$190 million in repurchases during Fiscal 2026, indicating assertive utilization of available capital.
Investors may view this move positively, interpreting it as a sign of strong cash flow generation—particularly with management's emphasis on a "robust cash flow engine." The successful execution of the share buyback could also mitigate volatility during periods of market uncertainty, as the company continues to actively manage its capital structure.
However, while the share repurchase program can positively influence investor sentiment, it is essential to consider the broader market context. Investors should closely monitor earnings results and any potential underlying operational concerns that might arise. Additionally, market conditions, interest rates, and sector performance may impact stock price fluctuations.
In summary, OpenText's increased share repurchase program could be a strategically sound move that benefits long-term shareholders by enhancing EPS and signifying management's confidence. Investors should remain vigilant, watching for the execution of this program alongside other key performance indicators as they evaluate the company's financial trajectory.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Canada NewsWire
WATERLOO, ON, Feb. 10, 2026 /CNW/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX) (the Company), today announced that it has increased its previously announced Fiscal 2026 share repurchase program by US$200 million, whereby it intends to purchase for cancellation up to a maximum aggregate value of US$500 million of its common shares (Common Shares) pursuant to a normal course issuer bid (NCIB). The maximum number of Common Shares that may be acquired under the NCIB will remain unchanged at the 24,906,456 Common Shares, which was previously approved by the Toronto Stock Exchange (TSX).
"Our share repurchase program is an important component of the OpenText capital allocation strategy," said Steve Rai, Executive Vice President, Chief Financial Officer. "We are raising our authorized limits under our current share repurchase program from US$300 million to US$500 million, given our confidence in our robust cash flow engine."
The NCIB is in effect for the 12-month period that commenced August 12, 2025 and terminates August 11, 2026 (subject to earlier termination where the maximum purchase limits under the NCIB have been reached). Common Shares can be repurchased under the NCIB in open market transactions on the TSX, the NASDAQ Global Select Market and/or alternative trading systems in Canada and/or the United States, if eligible, subject to applicable law and stock exchange rules. Under the NCIB, the Company also has an automatic share purchase plan (ASPP) with its broker to facilitate repurchases of the Common Shares, and purchases of Common Shares made under such ASPP will be included in determining the number of Common Shares purchased under the NCIB.
During Fiscal 2026, the Company has purchased for cancellation approximately US$190 million of Common Shares (as of January 31, 2026), of which approximately 5 million Common Shares for an aggregate value of approximately US$165 million have been purchased and cancelled since the beginning of the NCIB.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements about Open Text regarding the Company's capital allocation strategy, its confidence in its cash flow, the size and timing of the NCIB, potential purchases of Common Shares under the ASPP and other matters, which may contain words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may", "could", "would", "might", "will" and variations of these words or similar expressions, are intended to identify forward-looking statements or information under applicable securities laws (forward-looking statements). In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements, and are based on our current expectations, forecasts and projections about the operating environment, economies and markets in which we operate. Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management's perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances, such as certain assumptions about the economy, as well as market, financial and operational assumptions. Management's estimates, beliefs and assumptions, are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change and are not considered guidance. We can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Forward-looking statements involve known and unknown risks and uncertainties such as those relating to: all statements regarding the expected future financial position, results of operations, revenues, expenses, margins, cash flows, dividends, share buybacks, financing plans, business strategy, budgets, capital expenditures, competitive positions, growth opportunities, plans and objectives of management; and our ability to develop, protect and maintain our intellectual property and proprietary technology and to operate without infringing on the proprietary rights of others. We rely on a combination of copyright, patent, trademark and trade secret laws, non-disclosure agreements and other contractual provisions to establish and maintain our proprietary rights, which are important to our success. From time to time, we may also enforce our intellectual property rights through litigation in line with our strategic and business objectives. The actual results that OpenText achieves may differ materially from any forward-looking statements. For additional information with respect to risks and other factors which could occur, see the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the Securities and Exchange Commission (SEC) and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Further, readers should note that we may announce information using our website, press releases, securities law filings, public conference calls, webcasts and the social media channels identified on the Investors section of our website (https://investors.opentext.com). Such social media channels may include the Company's or our executive's blog, X, formerly known as Twitter, account or LinkedIn account. The information posted through such channels may be material. Accordingly, readers should monitor such channels in addition to our other forms of communication.
Copyright © 2026 OpenText. All Rights Reserved. Trademarks owned by OpenText. One or more patents may cover this product(s). For more information, please visit https://www.opentext.com/patents.
About OpenText
OpenText™ is a global leader in secure information management for AI, helping organizations protect, govern, and activate their data with confidence. Our technologies turn data into information with context to form the knowledge base for AI. Learn more at www.opentext.com.
OTEX-F
SOURCE Open Text Corporation
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/February2026/10/c8612.html
FAQ**
How does the increase in the share repurchase program to US$500 million reflect Open Text Corporation OTEX's confidence in its financial stability and future growth potential?
What factors contributed to Open Text Corporation OTEX deciding to expand its previously announced Fiscal 20share repurchase program by US$200 million?
Can you elaborate on how the automatic share purchase plan (ASPP) associated with Open Text Corporation OTEX's NCIB will facilitate the execution of the share repurchase program?
What impact does Open Text Corporation OTEX anticipate the increased share repurchase program will have on its stock price and overall market perception?
**MWN-AI FAQ is based on asking OpenAI questions about Open Text Corporation (NASDAQ: OTEX).
NASDAQ: OTEX
OTEX Trading
-4.47% G/L:
$23.94 Last:
602,996 Volume:
$25.10 Open:
