Should Open Text’s (OTEX) AI-Powered Microsoft Integrations Prompt a Closer Look From Investors?

OpenText recently announced new advancements in its Core Threat Detection and Response platform, an AI-driven cybersecurity solution now fully integrated with Microsoft Defender for Endpoint, Microsoft Entra ID, and Microsoft Copilot for Security, aimed at accelerating threat detection and response for enterprise clients. This launch reflects OpenText's effort to simplify and strengthen cybersecurity operations with AI at a time when complexity and attack sophistication are rising, especially as security and IT leaders increasingly prioritize streamlining defenses. We'll explore how deepening integration with Microsoft security technologies could shape OpenText's investment case moving forward.

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Open Text Investment Narrative Recap

To be a shareholder in OpenText today, you need to believe that sustained innovation in cloud, AI and cybersecurity will offset ongoing declines in legacy maintenance revenue and support recurring growth. The recent launch of AI-powered Core Threat Detection and Response, now fully integrated with Microsoft security platforms, could reinforce confidence around near-term customer wins in cybersecurity, but the most important catalyst remains a return to revenue growth in that segment. Meanwhile, a core risk is that continued legacy business weakness may drag on total revenue and net margins if cloud adoption doesn't accelerate as needed.

Among the latest company updates, the appointment of Steve Rai as Chief Financial Officer stands out, especially given his experience leading financial strategy and transformation at BlackBerry. As OpenText works through ongoing business optimization and restructuring, his background could be relevant in executing cost savings accurately and supporting margin expansion efforts, an area closely tied to the company's most important short-term catalysts.

In contrast, the company’s dependency on stabilizing and growing its cloud-driven business to offset legacy declines is a factor investors should be aware of...

Read the full narrative on Open Text (it's free!)

Open Text's narrative projects $5.4 billion revenue and $862.6 million earnings by 2028. This requires 1.4% yearly revenue growth and a $426.7 million earnings increase from $435.9 million today.

Uncover how Open Text's forecasts yield a $37.66 fair value, a 3% downside to its current price.

Story Continues

Exploring Other PerspectivesOTEX Community Fair Values as at Oct 2025

Seven individual fair value estimates from the Simply Wall St Community range from US$21.43 to US$66.05 per share. With this spectrum of opinions, keep in mind that the company’s ability to reignite growth in core areas could determine how performance aligns with either end of that range.

Explore 7 other fair value estimates on Open Text - why the stock might be worth as much as 71% more than the current price!

Build Your Own Open Text Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your Open Text research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Open Text research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Open Text's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include OTEX.

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