EPS of $1.11 beat estimates of 93c. Revenue of $1.33B beat estimates of $1.31B. EBITDA of $501M beat estimates by 10%. Despite OpenText's fiscal 2Q Ebitda beat and increased free-cash-flow guidance for 2025, the company leaves much to be pondered amid cuts to its annual recurring and total revenue outlooks. Part of the reduction was driven by currency headwinds and a change in the relationship with reselling partner DXC, yet the trimmed cloud-booking growth view of 20-25% vs. 25% previously likely adds sales-execution pressure and puts the focus on the pace of AI-product adoption and expansion rates among its existing base. The company's fiscal 2027 free-cash-flow goal of $1.2-$1.3 billion vs. $600-$650 million in fiscal 2025 could prove optimistic. But the quarter itself was decent, and with the stock at only 8X earnings expectations are clearly already low. We are OK with the quarter/outlook.
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