OpenText Increases Share Repurchase Program to US$500 Million

Rhea-AI Summary

OpenText (NASDAQ: OTEX) increased its Fiscal 2026 share repurchase program from US$300 million to US$500 million, authorizing purchases for cancellation under a normal course issuer bid (NCIB). The maximum share count remains 24,906,456 and the NCIB runs through August 11, 2026.

As of January 31, 2026, the company purchased approximately US$190 million of common shares in Fiscal 2026, including about 5 million shares for ~US$165 million cancelled since the NCIB began.

Positive

• Authorized buyback increased by US$200M to total US$500M
• Purchased approximately US$190M of shares in Fiscal 2026 as of Jan 31, 2026
• Cancelled ~5 million Common Shares for approximately US$165M during the NCIB

Negative

• Maximum share count remains at 24,906,456, potentially limiting further share quantity repurchases
• Remaining authorized buyback capacity is approximately US$310M (US$500M minus US$190M) through Aug 11, 2026

News Market Reaction

+2.80%

52 alerts

+2.80% News Effect

-10.6% Trough in 26 hr 7 min

+$183M Valuation Impact

$6.71B Market Cap

0.6x Rel. Volume

On the day this news was published, OTEX gained 2.80%, reflecting a moderate positive market reaction. Argus tracked a trough of -10.6% from its starting point during tracking. Our momentum scanner triggered 52 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $183M to the company's valuation, bringing the market cap to $6.71B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

NCIB authorization: US$500 million Increase in program: US$200 million Previous authorization: US$300 million +5 more

8 metrics

NCIB authorization US$500 million Maximum aggregate value of Fiscal 2026 share repurchase program

Increase in program US$200 million Incremental boost over previously announced Fiscal 2026 buyback

Previous authorization US$300 million Prior limit for current Fiscal 2026 repurchase program

Max shares under NCIB 24,906,456 shares Maximum Common Shares that may be acquired under current NCIB

NCIB period Aug 12, 2025–Aug 11, 2026 12‑month duration of the current normal course issuer bid

Fiscal 2026 repurchases ≈US$190 million Common Shares purchased for cancellation as of Jan 31, 2026

Shares repurchased ≈5 million shares Common Shares bought and cancelled since start of NCIB

ASPP coverage Automatic Share Purchase Plan Plan with broker to facilitate NCIB repurchases

Market Reality Check

Price: $24.26 Vol: Volume 3,690,108 vs 20-da...

high vol

$24.26 Last Close

Volume Volume 3,690,108 vs 20-day avg 2,422,267 (relative volume 1.52x ahead of this news). high

Technical Trading at $25.35, below 200-day MA of $31.84 and about 36.47% under the 52-week high.

Peers on Argus

OTEX was up 1.12% while peers showed mixed moves: NICE down 0.28%, PEGA up 4.39%...

OTEX was up 1.12% while peers showed mixed moves: NICE down 0.28%, PEGA up 4.39%, CVLT up 2.08%, ESTC up 2.22%, SRAD up 1.83%, suggesting this buyback news is more stock-specific than a broad sector move.

Previous Buybacks Reports

1 past event · Latest: Mar 13 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Mar 13	Share repurchase update	Positive	+3.8%	Expanded Fiscal 2025 NCIB by US$150M to US$450M with ASPP adoption.

Pattern Detected

Prior buyback expansion news in March 2025 was followed by a positive 3.78% one-day move, indicating historically supportive reactions to larger repurchase authorizations.

Recent Company History

Over the past year, OTEX has used enhanced share repurchase programs as a recurring capital allocation tool. In March 2025, it raised its Fiscal 2025 NCIB by US$150 million to US$450 million, with 8.9 million shares repurchased for US$258 million. Today’s Fiscal 2026 increase to US$500 million continues that pattern of expanding buyback capacity while maintaining fixed share-count limits, suggesting ongoing emphasis on returning capital via repurchases.

Historical Comparison

buybacks

+3.8 %

Average Historical Move

Historical Analysis

In the past year OTEX had 1 buyback-related release, which saw a 3.78% gain. Today’s Fiscal 2026 NCIB increase mirrors that prior capital return focus.

Typical Pattern

OTEX has repeatedly expanded NCIB authorizations across fiscal years while keeping maximum share-count limits fixed, signaling a consistent repurchase framework.

Market Pulse Summary

This announcement increases OTEX’s Fiscal 2026 NCIB capacity to US$500 million while keeping the sha...

Analysis

This announcement increases OTEX’s Fiscal 2026 NCIB capacity to US$500 million while keeping the share-count cap at 24,906,456. The company has already repurchased about US$190 million of stock, including roughly 5 million shares since the NCIB began, supported by an ASPP to maintain buying through restricted periods. Compared with the prior buyback expansion that preceded a 3.78% move, investors may track actual repurchase pace and concurrent financial performance.

Key Terms

normal course issuer bid, ncib, automatic share purchase plan

3 terms

normal course issuer bid regulatory

"maximum aggregate value of US$500 million of its common shares ... pursuant to a normal course issuer bid (NCIB)"

A Normal Course Issuer Bid is when a company buys back its own shares from the stock market over time. This usually shows that the company believes its stock is undervalued and wants to support its price, which can be important for investors to watch.

ncib regulatory

"maximum aggregate value of US$500 million of its common shares (Common Shares) pursuant to a normal course issuer bid (NCIB)"

A NCIB (Normal Course Issuer Bid) is a formal program that allows a publicly traded company to buy back its own shares on the open market over a set period. For investors, buybacks can shrink the number of shares outstanding, which often raises earnings per share and can support the stock price; like a company buying back slices of a pie so each remaining slice represents a larger share of ownership, but it also uses corporate cash that might have been spent elsewhere.

automatic share purchase plan financial

"the Company also has an automatic share purchase plan (ASPP) with its broker"

An automatic share purchase plan is a pre-arranged agreement that allows investors to buy a set amount of a company's shares at regular intervals without needing to make individual decisions each time. It helps investors steadily build their holdings over time, much like setting a recurring deposit into a savings account, making investing more disciplined and less influenced by short-term market fluctuations.

AI-generated analysis. Not financial advice.

WATERLOO, ON, Feb. 10, 2026 /PRNewswire/ -- 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

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SOURCE Open Text Corporation

FAQ

What did OpenText (OTEX) announce about its share repurchase program on February 10, 2026?

OpenText increased its Fiscal 2026 repurchase authorization from US$300M to US$500M. According to the company, the NCIB remains in effect through August 11, 2026 with the maximum share count unchanged at 24,906,456.

How many shares has OpenText (OTEX) repurchased and cancelled under the NCIB so far in Fiscal 2026?

OpenText repurchased about US$190M of common shares in Fiscal 2026 as of January 31, 2026. According to the company, roughly 5 million shares for ~US$165M were purchased and cancelled since the NCIB began.

When does the OpenText (OTEX) normal course issuer bid (NCIB) expire and where can repurchases occur?

The NCIB runs from August 12, 2025 through August 11, 2026, subject to earlier termination. According to the company, repurchases may occur on the TSX, NASDAQ Global Select Market and eligible alternative trading systems.

What is the maximum number of OpenText (OTEX) common shares allowed under the NCIB?

The maximum number of Common Shares authorized under the NCIB remains 24,906,456. According to the company, the dollar cap was increased while the maximum share count approved by the TSX was not changed.

How much remaining repurchase capacity does OpenText (OTEX) have under the increased program?

After purchases of about US$190M in Fiscal 2026, the company has approximately US$310M of authorized buyback capacity remaining under the US$500M program. According to the company, repurchases continue subject to NCIB limits and rules.