Q4 2026 Open Text Corp Earnings Call

August 6, 2026

Operator: Thank you for standing by. This is the conference operator. Welcome to the Open Text Corporation Q4 fiscal 2026 financial results conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an analyst Q&A session. To join the question queue, simply press star then one on your touchtone phone. Should anyone need assistance during the conference call, they may reach an operator by pressing star then zero. I would now like to turn the conference over to Greg Secord, Head of Investor Relations. Please go ahead.

Operator: Thank you for standing by. This is the conference operator. Welcome to the OpenText Corporation Q4 fiscal 2026 financial results conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an analyst Q&A session. To join the question queue, simply press star then one on your touchtone phone. Should anyone need assistance during the conference call, they may reach an operator by pressing star then zero. I would now like to turn the conference over to Greg Secord, Head of Investor Relations. Please go ahead.

Speaker #1: For standing by. This is the conference operator. Welcome to the Open TEXT Corporation Q4 2026 financial results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded.

Speaker #1: After the presentation, there will be an analyst Q&A session. To join the QQ, simply press * then 1 on your touchstone phone. Should anyone need assistance during the conference call, they may reach an operator by pressing * then 0.

Speaker #1: I would now like to turn the conference over to Greg Seacord, Head of Investor Relations. Please go ahead.

Speaker #2: Thank you, operator, and good morning, everyone. Welcome to Open TEXT Q4 2026 earnings call. With me on the call today are Open TEXT Chief Executive Officer Eamon Antin and Steve Ray, Executive Vice President and Chief Financial Officer.

Greg Secord: Thank you, operator, good morning, everyone. Welcome to OpenText Q4 fiscal 2026 earnings call. With me on the call today are OpenText Chief Executive Officer, Ayman Antoun, and Steve Rai, Executive Vice President and Chief Financial Officer. Today's call is being webcast and recorded with replay available shortly thereafter on the OpenText Investor Relations website. That is investors.opentext.com. Earlier today, we posted our press release and investor presentation online. These materials will supplement our prepared remarks and can be accessed on the OpenText Investor Relations website. Please see our investor presentation for further details of our core and non-core revenues by product category. Turning to upcoming investor events.

Speaker #2: Today's call is being webcast and recorded with replay available shortly thereafter on the Open TEXT Investor Relations website. That's investors.opentext.com. Earlier today, we posted our press release and investor presentation online.

Speaker #2: These materials will supplement our prepared remarks and can be accessed on the Open TEXT Investor Relations website. Please see our investor presentation for further details of our core and non-core revenues by product category.

Operator: Thank you for standing by. This is the conference operator. Welcome to the OpenText Corporation Q4 fiscal 2026 financial results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an analyst Q&A session. To join the question queue, simply press star then one on your touchtone phone. Should anyone need assistance during the conference call, they may reach an operator by pressing star then zero. I would now like to turn the conference over to Greg Secord, Head of Investor Relations. Please go ahead.

Speaker #2: Now turning to upcoming investor events. Open TEXT will be participating in the Oppenheimer Technology Conference on August 12. The Deutsche Bank Technology Conference in Los Angeles on August 26.

Greg Secord: OpenText will be participating in the Oppenheimer Technology Conference on 12 August, the Deutsche Bank Technology Conference in Los Angeles on 26 August, Citibank Global TMT Conference in New York on 10 September, and the Bank of Montreal TMT Conference in Toronto on 15 September. We look forward to meeting with you there. On to the reading of our safe harbor statement. During this call, we will be making forward-looking statements related to the future performance of OpenText. These statements are based on current expectations, assumptions, and other material factors that are subject to risks and uncertainties, and actual results could differ materially from the forward-looking statements made today.

Speaker #1: After the presentation, there will be an analyst Q&A session. To join the question queue, simply press * then 1 on your touchtone phone. Should anyone need assistance during the conference call, they may reach an operator by pressing * then 0.

Speaker #2: Citibank Global TMT Conference in New York on September 10. And the Bank of Montreal TMT Conference in Toronto on September 15. We look forward to meeting with you there.

Speaker #2: And now onto the reading of our Safe Harbor statement. During this call, we will be making forward-looking statements related to the future performance of Open TEXT.

Greg Secord: Thank you, operator. Good morning, everyone. Welcome to OpenText Q4 fiscal 2026 earnings call. With me on the call today are OpenText Chief Executive Officer, Ayman Antoun, and Steve Rai, Executive Vice President and Chief Financial Officer. Today's call is being webcast and recorded with replay available shortly thereafter on the OpenText Investor Relations website. That's investors.opentext.com. Earlier today, we posted our press release and investor presentation online. These materials will supplement our prepared remarks and can be accessed on the OpenText Investor Relations website. Please see our investor presentation for further details of our core and non-core revenues by product category. Turning to upcoming investor events.

Speaker #2: everyone. Welcome to OPEN TEXT Q4 2026 earnings call. With me on the call today are OPEN TEXT Chief Executive Officer Eamon Enton and Steve Ray, Executive Vice President and Chief Financial Officer.

Speaker #2: Additional information about the material factors that could cause actual results to differ materially from such forward-looking statements as well as the risk factors that may impact future performance results of Open TEXT are contained in Open TEXT's recent forms 10-K and 10-Q, as well as in our press release that was distributed earlier today.

Greg Secord: Additional information about the material factors that could cause actual results to differ materially from such forward-looking statements, as well as the risk factors that may impact future performance results of OpenText, are contained in OpenText's recent forms 10-K and 10-Q, as well as in our press release that was distributed earlier today. All of which may be found on our website. We undertake no obligation to update these forward-looking statements unless required to do so by law. In addition, our conference call may include discussions of certain non-GAAP financial measures. Reconciliations of any non-GAAP financial measures to their most directly comparable GAAP measures may be found within our public filings and other materials, which are available on our website. With that, I will hand the call over to Ayman.

Speaker #2: Earlier today, we posted our press We look forward to meeting with you there. And now onto the reading of our Safe Harbor statement. During this call, we will be making forward-looking statements related to the future performance of OPEN TEXT.

Speaker #2: All of which may be found on our website. We undertake no obligation to update these forward-looking statements, unless required to do so by law.

Speaker #2: remarks and can be accessed on the OPEN TEXT Investor Relations website. Please see our investor presentation for further details of our core and non-core revenues by product category.

Speaker #2: In addition, our conference call may include discussions of certain non-GAAP financial measures. Reconciliations of any non-GAAP financial measures to their most directly comparable GAAP measures may be found within our public filings and other materials which are available on our website.

Speaker #2: Now turning to upcoming investor events. OPEN TEXT will be participating in the Oppenheimer Technology Conference on August 12. The Deutsche Bank Technology Conference in Los Angeles on August 26.

Greg Secord: OpenText will be participating in the Oppenheimer Technology Conference on 12 August, the Deutsche Bank Technology Conference in Los Angeles on 26 August, Citi Global TMT Conference in New York on 10 September, and the Bank of Montreal TMT Conference in Toronto on 15 September. We look forward to meeting with you there. Now on to the reading of our safe harbor statement. During this call, we will be making forward-looking statements related to the future performance of OpenText. These statements are based on current expectations, assumptions, and other material factors that are subject to risks and uncertainties, and actual results could differ materially from the forward-looking statements made today.

Speaker #2: And with that, I'll hand the call over to Eamon.

Speaker #2: Citibank Global TMT Conference in New York on September 10. And the Bank of Montreal TMT Conference in Toronto on September Today's call is being webcast and 15.

Speaker #3: Good morning, everyone, and thank you for being here today. For Q4 2026, we delivered balanced year-over-year growth and constant currency. Our top-line revenue grew 1%, our core portfolio grew 3%, cloud revenue on our core portfolio grew 9%, and our adjusted EBITDA margin was 37.1%.

Ayman Antoun: Good morning, everyone, and thank you for being here today. For Q4 fiscal year 2026, we delivered balanced year-over-year growth in constant currency. Our top-line revenue grew 1%, our core portfolio grew 3%, cloud revenue in our core portfolio grew 9%, and our adjusted EBITDA margin was 37.1%. Our CFO, Steve Rai, will take you through our Q4 and full year 2026 results and our fiscal 2027 outlook shortly. Fiscal 2027 is a foundation year for us, centered on ruthless prioritization and focus, disciplined execution, core growth in constant currency, and putting in place the foundation for enhanced performance for years to come. When I joined you last quarter, I was just days into my role as CEO of this iconic Canadian technology company. On day one, I set out clear priorities around listen, learn, assess, and act. Today, I have three updates I'd like to share with you.

Speaker #2: These statements are based on current expectations, assumptions, and other material factors that are subject to risks and uncertainties, and actual results could differ materially from the forward-looking statements made today. information about the material factors that could cause actual results to differ materially from such forward-looking statements as well as the risk factors that may impact future performance results of OPEN TEXT are contained in OPEN TEXT's recent forms 10-K and 10-Q, as well as in our press release that was distributed earlier today.

Speaker #3: Our CFO, Steve Ray, will take you through our Q4 and 2026 results and our 2027 outlook shortly. 2027 is a foundation year for us, centered on ruthless prioritization and focus, disciplined execution, core growth and constant currency, and putting in place the foundation for enhanced performance for years to come.

Speaker #2: Additional

Greg Secord: Additional information about the material factors that could cause actual results to differ materially from such forward-looking statements, as well as the risk factors that may impact future performance results of OpenText are contained in OpenText's recent forms 10-K and 10-Q, as well as in our press release that was distributed earlier today, all of which may be found on our website. We undertake no obligation to update these forward-looking statements unless required to do so by law. In addition, our conference call may include discussions of certain non-GAAP financial measures. Reconciliations of any non-GAAP financial measures to their most directly comparable GAAP measures may be found within our public filings and other materials which are available on our website. With that, I'll hand the call over to Ayman.

Speaker #2: All of which may be found on our website. We undertake no obligation to update these forward-looking statements unless required to do so by law.

Speaker #3: When I joined you last quarter, I was just days into my role as CEO of this iconic Canadian technology company. On day one, I set out clear priorities, around listen, learn, assess, and act.

Speaker #3: Today, I have three updates I'd like to share with you. First, the feedback I heard from our stakeholders. Second, the enterprise assessment work we launched as a result of stakeholder feedback.

Ayman Antoun: Today, I have three updates I'd like to share with you. First, the feedback I heard from our stakeholders. Second, the enterprise assessment work we launched as a result of stakeholder feedback. Third, the early actions and disciplined capital allocation we're executing to drive consistent, sustained performance now and for the future. Finally, before I close, I will highlight examples of the value we are delivering with AI for our clients. Before I cover these updates, I want to pause on an important theme that stands out. Every client, partner, and shareholder meeting I had over the last few weeks came back to AI and the promise AI holds for every enterprise in every industry. What clients told me was clear: governed, secured, and integrated data is fundamental to their AI ambitions.

Speaker #2: And with Eamon.

Ayman Antoun: First, the feedback I heard from our stakeholders. Second, the enterprise assessment work we launched as a result of stakeholder feedback. Third, the early actions and disciplined capital allocation we're executing to drive consistent, sustained performance now and for the future. Finally, before I close, I will highlight examples of the value we are delivering with AI for our clients. Before I cover these updates, I want to pause on an important theme that stands out. Every client, partner, and shareholder meeting I had over the last few weeks came back to AI and the promise AI holds for every enterprise in every industry. What clients told me was clear: governed, secured, and integrated data is fundamental to their AI ambitions. Because there's no large language model, no AI agent, no application functions without data.

Speaker #3: Good morning, everyone. And thank you for being here today. For Q4

Ayman Antoun: Good morning, everyone, and thank you for being here today. For Q4 fiscal year 2026, we delivered balanced year-over-year growth in constant currency. Our top line revenue grew 1%, our core portfolio grew 3%, cloud revenue in our core portfolio grew 9%, and our adjusted EBITDA margin was 37.1%. Our CFO, Steve Rai, will take you through our Q4 and full year 2026 results and our fiscal 2027 outlook shortly. Fiscal 2027 is a foundation year for us, centered on ruthless prioritization and focus, disciplined execution, core growth in constant currency, and putting in place the foundation for enhanced performance for years to come. When I joined you last quarter, I was just days into my role as CEO of this iconic Canadian technology company. On day one, I set out clear priorities around listen, learn, assess, and act. Today, I have three updates I'd like to share with you.

Speaker #3: 2026, we delivered balanced year-over-year growth in constant currency. Our top-line revenue grew 1%. Our core portfolio grew 3%. Cloud revenue on our core portfolio grew 9%.

Speaker #3: And third, the early actions and disciplined capital allocation were executed to drive consistent sustained performance, now and for the future. Finally, before I close, I will highlight examples of the value we are delivering with AI for our clients.

Speaker #3: And our adjusted EBITDA margin was 37.1%. Our CFO, Steve Ray, will take you through our Q4 and full year 2026 results and our fiscal 2027 outlook shortly.

Speaker #3: Before I cover these updates, I want to pause on an important theme that stands out: every client, partner, and shareholder meeting I had over the last few weeks came back to AI.

Speaker #3: Fiscal 2027 is a foundation year for us, centered on ruthless prioritization and focus; disciplined execution; core growth in constant currency; and putting in place the foundation for enhanced performance for years to come.

Speaker #3: And the promise AI holds for every enterprise in every industry. What clients told me was clear: governed, secured, and integrated data is fundamental to their AI ambitions.

Speaker #3: Because there's no large language model, no AI agent, no application functions without data. And that data needs to be trusted and in context, to produce AI outcomes that bring value to an organization.

Ayman Antoun: Because there's no large language model, no AI agent, no application functions without data. That data needs to be trusted and in context to produce AI outcomes that bring value to an organization. Canadian in our roots, global in our reach, OpenText is the secure data foundation in the AI stack. Simply put, our portfolio of data management solutions is the difference between AI that is trusted and AI that is not. Enterprise-grade data is our differentiator. We're built for this moment in AI and for the future. Now let me start with feedback from our stakeholders. I will start with our North Star, our clients. They value our team, our solutions, and our partnership with them. In many cases, these partnerships span 15, 20, and 25 years.

Speaker #3: When I joined you last quarter, I was just days into my role as CEO of this iconic Canadian technology company. On day one, I set out clear priorities around listen, learn, assess, and act.

Ayman Antoun: That data needs to be trusted and in context to produce AI outcomes that bring value to an organization. Canadian in our roots, global in our reach, OpenText is the secure data foundation in the AI stack. Simply put, our portfolio of data management solutions is the difference between AI that is trusted and AI that is not. Enterprise-grade data is our differentiator. We're built for this moment in AI and for the future. Now let me start with feedback from our stakeholders. I will start with our North Star, our clients. They value our team, our solutions, and our partnership with them. In many cases, these partnerships span 15, 20, and 25 years. They want a more integrated OpenText, one that moves with speed and brings them innovation with purpose. Our ecosystem partners, they want more joint engagements.

Speaker #3: Canadian and our roots global in our reach, Open TEXT is the secure data foundation in the AI stack. Simply put, our portfolio of data management solutions is the difference between AI that is trusted and AI that is not.

Ayman Antoun: First, the feedback I heard from our stakeholders. Second, the enterprise assessment work we launched as a result of stakeholder feedback. Third, the early actions and disciplined capital allocation we're executing to drive consistent, sustained performance now and for the future. Finally, before I close, I will highlight examples of the value we are delivering with AI for our clients. Before I cover these updates, I want to pause on an important theme that stands out. Every client, partner, and shareholder meeting I had over the last few weeks came back to AI and the promise AI holds for every enterprise in every industry. What clients told me was clear. Governed, secured, and integrated data is fundamental to their AI ambitions because there's no large language model, no AI agent, no application functions without data.

Speaker #3: And third, the early actions and disciplined capital allocation were executed to drive consistent sustained performance now and for the future. Finally, before I close, I will highlight examples of the value we are delivering with AI for our clients.

Speaker #3: Enterprise-grade data is our differentiator. We're built for this moment in AI and for the future. And now, let me start with feedback from our stakeholders.

Speaker #3: I will start with our North Star, our clients. They value our team, our solutions, and our partnership with them. In many cases, these partnerships span 15, 20, 25 years.

Speaker #3: Before I cover these updates, I want to pause on an important theme that stands out. Every client partner and shareholder meeting I had over the last few weeks came back to AI.

Speaker #3: They want a more integrated Open TEXT, one that moves with speed, and brings them innovation with purpose. Our ecosystem partners, they want more joint engagements.

Ayman Antoun: They want a more integrated OpenText, one that moves with speed and brings them innovation with purpose. Our ecosystem partners, they want more joint engagements. They see our differentiated value and want to scale with us. They want to pair our trusted data foundation for AI with their technology and services to capture more of the estimated $300 billion addressable market opportunity. Our OpenText colleagues, they want what I want, more speed and simplicity, so we get more done and show up better for our clients. Our investors, they want us to be more focused, play to our strengths, and deliver consistent revenue growth with a consistent set of KPIs to measure our progress. This invaluable feedback is already shaping how we operate. Now, let me show you how.

Speaker #3: And the promise AI holds for every enterprise in every industry. What clients told me was clear: governed, secured, and integrated data is fundamental to their AI ambitions.

Speaker #3: They see our differentiated value and want to scale with us. They want to pair our trusted data foundation for AI with their technology and services.

Ayman Antoun: They see our differentiated value and want to scale with us. They want to pair our trusted data foundation for AI with their technology and services to capture more of the estimated $300 billion addressable market opportunity. Our OpenText colleagues, they want what I want, more speed and simplicity, so we get more done and show up better for our clients. Our investors, they want us to be more focused, play to our strengths, and deliver consistent revenue growth with a consistent set of KPIs to measure our progress. This invaluable feedback is already shaping how we operate. Now, let me show you how. With the direct feedback from our clients, investors, partners, and colleagues, we launched an end-to-end enterprise assessment that assesses the end-to-end part of everything that we do.

Speaker #3: Because there's no large language model; no AI agent; no application functions without data. And that data needs to be trusted and in context, to produce AI outcomes that bring value to an organization.

Speaker #3: To capture more of the estimated 300 billion addressable market opportunity. Our Open TEXT colleagues, they want what I want. More speed and simplicity. So we get more done and show up better for our clients.

Ayman Antoun: That data needs to be trusted and in context to produce AI outcomes that bring value to an organization. Canadian in our roots, global in our reach, OpenText is the secure data foundation in the AI stack. Simply put, our portfolio of data management solutions is the difference between AI that is trusted and AI that is not. Enterprise-grade data is our differentiator. We're built for this moment in AI and for the future. Now, let me start with feedback from our stakeholders. I will start with our North Star, our clients. They value our team, our solutions, and our partnership with them. In many cases, these partnerships span 15, 20, 25 years. They want a more integrated OpenText, one that moves with speed and brings them innovation with purpose. Our ecosystem partners, they want more joint engagements.

Speaker #3: Canadian and our roots global in our reach, OPEN TEXT is the secure data foundation in the AI stack. Simply put, our portfolio of data management solutions is the difference between AI that is trusted and AI that is not.

Speaker #3: And our investors, they want us to be more focused, play to our strengths, and deliver consistent revenue growth with a consistent set of KPIs to measure our progress.

Speaker #3: This invaluable feedback is already shaping how we operate. Now, let me show you how. With the direct feedback from our clients, investors, partners, and colleagues, we launched an end-to-end enterprise assessment that assesses the end-to-end part of everything that we do, in particular, that enterprise assessment is to focus on two things.

Speaker #3: Enterprise-grade data is our differentiator. We're built for this moment in AI and for the future. And now, let me start with feedback from our stakeholders.

Ayman Antoun: With the direct feedback from our clients, investors, partners, and colleagues, we launched an end-to-end enterprise assessment that assesses the end-to-end part of everything that we do. In particular, that enterprise assessment is to focus on two things: identify early actions to drive growth now, and to lay the foundation for enhanced and consistent growth for years to come. The assessment work is focused on the following areas: go to markets, how we show up in front of our clients, and I will share with you more on this shortly. It covers our portfolio composition, differentiation, and our development process. Marketing and demand generation engine. It is looking at our execution model, decision rights to ensure that we are operating with discipline, accountability, simplicity, and speed.

Speaker #3: I will start with our North Star, our clients. They value our team, our solutions, and our partnership with them in many cases these partnerships spanned 15, 20, 25 years.

Ayman Antoun: In particular, that enterprise assessment is to focus on two things: identify early actions to drive growth now, and to lay the foundation for enhanced and consistent growth for years to come. The assessment work is focused on the following areas: go to markets, how we show up in front of our clients, and I will share with you more on this shortly. It covers our portfolio composition, differentiation, and our development process. Marketing and demand generation engine. It is looking at our execution model, decision rights to ensure that we are operating with discipline, accountability, simplicity, and speed. It also covers our talent and culture, which brings all of this to life. This work is being led, as we speak, by our senior leadership team. Its output will define our multi-year growth plan and the financial model that creates and sustains shareholder value.

Speaker #3: Identify early actions to drive growth, now, and to lay the foundation for enhanced and consistent growth for years to come. The assessment work is focused on the following areas: go to markets, how we show up in front of our clients, and I will share with you more on this shortly.

Speaker #3: They want a more integrated OPEN TEXT, one that moves with speed, and brings them innovation with purpose. Our ecosystem partners, they want more joint engagements.

Speaker #3: They see our differentiated value and want to scale with us. They want to pair our trusted data foundation for AI with their technology and services.

Ayman Antoun: They see our differentiated value and want to scale with us. They want to pair our trusted data foundation for AI with their technology and services to capture more of the estimated 300 billion addressable market opportunity. Our OpenText colleagues, they want what I want, more speed and simplicity so we get more done and show up better for our clients. Our investors, they want us to be more focused, play to our strengths, and deliver consistent revenue growth with a consistent set of KPIs to measure our progress. This invaluable feedback is already shaping how we operate. Now, let me show you how. With the direct feedback from our clients, investors, partners, and colleagues, we launched an end-to-end enterprise assessment that assesses the end-to-end part of everything that we do. In particular, that enterprise assessment is to focus on two things.

Speaker #3: It covers our portfolio composition, differentiation, and our development process. Marketing and demand generation engine, it's looking at our execution model, decision rights, to ensure that we are operating with discipline, accountability, simplicity, and speed.

Speaker #3: To capture more of the estimated 300 billion addressable market opportunity. Our OPEN TEXT colleagues, they want what I want. More speed and simplicity. So we get more done and show up better for our clients.

Speaker #3: And it also covers our talent and culture, which brings all of this to life. This work is being led, as we speak, by our senior leadership team.

Ayman Antoun: It also covers our talent and culture, which brings all of this to life. This work is being led, as we speak, by our senior leadership team. Its output will define our multi-year growth plan and the financial model that creates and sustains shareholder value. As the assessment continues, we are not waiting to make changes that drive growth now. Next, I will walk you through the actions we are taking. First, we are investing in sales capacity. We are adding more than 300 new quota-carrying sales colleagues worldwide, with clients backed by one dedicated client executive who owns the relationship and makes it easier to do business across our portfolio. Second, we are investing in our ecosystem partners to expand our market reach.

Speaker #3: And our investors, they want us to be more focused. Play to our strengths and deliver consistent revenue growth with a consistent set of KPIs to measure our progress.

Speaker #3: Its output will define our multi-year growth plan and the financial model that creates and sustains shareholder value. As the assessment continues, we are not waiting to make changes that drive growth now.

Ayman Antoun: As the assessment continues, we are not waiting to make changes that drive growth now. Next, I will walk you through the actions we are taking. First, we are investing in sales capacity. We are adding more than 300 new quota-carrying sales colleagues worldwide, with clients backed by one dedicated client executive who owns the relationship and makes it easier to do business across our portfolio. Second, we are investing in our ecosystem partners to expand our market reach. We are privileged to partner with the world's leading global and regional system integrators, hyperscalers, and vertical ISVs like SAP. Together, we are now focused on effective cross-selling and enablement to bring clients enhanced offerings. We are injecting our winning partner ecosystem directly into our go-to-market model this year, partner-led market segments.

Speaker #3: Next, I will walk you through the actions we are taking. First, we're investing in sales capacity. We are adding more than 300 new quota-carrying sales colleagues worldwide.

Speaker #3: With clients, backed by one dedicated client executive, who owns the relationship and makes it easier to do business across our portfolio. Second, we're investing in our ecosystem partners.

Speaker #3: Identify early actions to drive growth now and to lay the foundation for enhanced and consistent growth for years to come. The assessment work is focused on the following areas: go to markets, how we show up in front of our clients, and I will share with you more on this shortly.

Ayman Antoun: Identify early actions to drive growth now, to lay the foundation for enhanced and consistent growth for years to come. The assessment work is focused on the following areas. Go-to-markets, how we show up in front of our clients, I will share with you more on this shortly. It covers our portfolio composition, differentiation, and our development process. Marketing and demand generation engine. It's looking at our execution model, decision rights to ensure that we are operating with discipline, accountability, simplicity, and speed. It also covers our talent and culture, which brings all of this to life. This work is being led as we speak by our senior leadership team. Its output will define our multi-year growth plan and the financial model that creates and sustains shareholder value. As the assessment continues, we are not waiting to make changes that drive growth now.

Speaker #3: They expand our market reach. We're privileged to partner with the world's leading global and regional system integrators, hyperscalers, and vertical ISVs like SAP. Together, we're now focused on effective co-selling and enablement to bring clients' enhanced offerings.

Ayman Antoun: We are privileged to partner with the world's leading global and regional system integrators, hyperscalers, and vertical ISVs like SAP. Together, we are now focused on effective cross-selling and enablement to bring clients enhanced offerings. We are injecting our winning partner ecosystem directly into our go-to-market model this year, partner-led market segments. Third, we are empowering the team closest to the client with clear decision rights so they can move with speed and simplicity to cross-sell our portfolio. Next, to continue the momentum of growth, we will be shifting more of our R&D investments into our core portfolio, cloud capabilities, and AI offerings. Finally, as I said on our first call together, capital discipline is a commitment we hold ourselves to.

Speaker #3: It covers our portfolio composition, differentiation, and our development process. The marketing and demand generation engine is looking at our execution model and decision rights to ensure that we are operating with discipline, accountability, simplicity, and speed.

Speaker #3: We are injecting our winning partner ecosystem directly into our go-to-market model this year, partner-led market segments. Third, we are empowering the team, closest to the client, with clear decision rights, so they can move with speed and simplicity to cross-sell our portfolio.

Ayman Antoun: Third, we are empowering the team closest to the client with clear decision rights so they can move with speed and simplicity to cross-sell our portfolio. Next, to continue the momentum of growth, we will be shifting more of our R&D investments into our core portfolio, cloud capabilities, and AI offerings. Finally, as I said on our first call together, capital discipline is a commitment we hold ourselves to. In Q4, we made an additional debt payment of $300 million from our net cash for a total of $649 million total debt paid in fiscal 2026. These early actions, with more to come this year, will make fiscal 2027 a foundation year for us to deliver growth in constant currency. The enterprise assessment concludes in a few months, and I look forward to sharing its outcome with you, our multi-year strategic plan in early calendar year 2027.

Speaker #3: And it also covers our talent and culture, which brings all of this to life. This work is being led, as we speak, by our senior leadership team.

Speaker #3: Next, to continue the momentum of growth, we will be shifting more of our R&D investment into our core portfolio, cloud capabilities, and AI offerings.

Speaker #3: And finally, as I said on our first call together, capital discipline is a commitment we hold ourselves to. In Q4, we made an additional debt payment of 300 million from our net cash for a total of 649 million total debt paid in fiscal 2026.

Speaker #3: Next, I will walk you through the actions we are taking. First, we're investing in sales capacity. We are adding more than 300 new quota-carrying sales colleagues worldwide.

Ayman Antoun: Next, I will walk you through the actions we are taking. First, we're investing in sales capacity. We are adding more than 300 new quota-carrying sales colleagues worldwide. With clients backed by one dedicated client executive who owns the relationship and makes it easier to do business across our portfolio. Second, we're investing in our ecosystem partners to expand our market reach. We're privileged to partner with the world's leading global and regional system integrators, hyperscalers, and vertical ISVs like SAP. Together, we're now focused on effective cross-selling and enablement to bring clients enhanced offerings. We are injecting our winning partner ecosystem directly into our go-to-market model this year, partner-led market segments. Third, we are empowering the team closest to the client with clear decision rights so they can move with speed and simplicity to cross-sell our portfolio.

Ayman Antoun: In Q4, we made an additional debt payment of $300 million from our net cash for a total of $649 million total debt paid in fiscal 2026. These early actions, with more to come this year, will make fiscal 2027 a foundation year for us to deliver growth in constant currency. The enterprise assessment concludes in a few months, and I look forward to sharing its outcome with you, our multi-year strategic plan in early calendar year 2027. This brings me to my final update, how we empower our clients with enterprise-grade data for AI. In the end, this is all about our clients' success. They are moving from experimenting with AI to implementing AI at scale. Aviator is our OpenText AI platform available across our portfolio.

Speaker #3: With clients, backed by one dedicated client executive who owns the relationship and makes it easier to do business across our portfolio. Second, we're investing in our ecosystem partners.

Speaker #3: These early actions, with more to come this year, will make fiscal 2027 a foundation year for us, to deliver growth in constant currency. The enterprise assessment concludes in a few months, and I look forward to sharing its outcome with you our multi-year strategic plan.

Speaker #3: In early calendar year 2027. This brings me to my final update. How we empower our clients with enterprise-grade data for AI. In the end, this is all about our client success.

Ayman Antoun: This brings me to my final update, how we empower our clients with enterprise-grade data for AI. In the end, this is all about our clients' success. They are moving from experimenting with AI to implementing AI at scale. Aviator is our OpenText AI platform available across our portfolio. Aviator Agents turn secure, trusted data into AI outcomes you can trust. Since Aviator Agents were introduced only eight quarters ago, the number of deals where Aviator Agents are integrated have more than doubled annually. When Aviator Agents are included in our clients' deals, our deal size is four times larger. The proof is in our clients' success stories. Let me share a few. Let's start with Content Cloud, the system where a company's knowledge lives and gets put to work.

Speaker #3: We are injecting our winning partner ecosystem directly into our go-to-market model this segments. Third, we are empowering the team, closest to the client, with clear decision rights.

Speaker #3: They're moving from experimenting with AI to implementing AI at scale. Aviator is our Open TEXT AI platform. Available across our portfolio. Aviator agents turn secure, trusted data into AI outcomes you can trust.

Speaker #3: So they can move with speed and simplicity to cross-sell our portfolio. Next, to continue the momentum of growth, we will be shifting more of our R&D investment into our core portfolio, cloud capabilities, and AI offerings.

Ayman Antoun: Aviator Agents turn secure, trusted data into AI outcomes you can trust. Since Aviator Agents were introduced only eight quarters ago, the number of deals where Aviator Agents are integrated have more than doubled annually. When Aviator Agents are included in our clients' deals, our deal size is four times larger. The proof is in our clients' success stories. Let me share a few. Let's start with Content Cloud, the system where a company's knowledge lives and gets put to work. At one of the world's largest technology firms, OpenText Aviator Agents turn millions of HR records into instant conversational self-service while keeping every record governed, compliant, and trusted. Next, cybersecurity, the system that protects a company's data and keeps it running.

Ayman Antoun: Next, to continue the momentum of growth, we will be shifting more of our R&D investment into our core portfolio, cloud capabilities, and AI offerings. Finally, as I said on our first call together, capital discipline is a commitment we hold ourselves to. In Q4, we made an additional debt payment of $300 million from our net cash for a total of $649 million total debt paid in fiscal 2026. These early actions, with more to come this year, will make fiscal 2027 a foundation year for us to deliver growth in constant currency. The enterprise assessment concludes in a few months, I look forward to sharing its outcome with you, our multi-year strategic plan in early calendar year 2027. This brings me to my final update, how we empower our clients with enterprise-grade data for AI. In the end, this is all about our clients' success.

Speaker #3: Since Aviator agents were introduced only eight quarters ago, the number of deals where Aviator agents are integrated have more than doubled annually. And when Aviator agents are included in our clients' deals, our deal size is four times larger.

Speaker #3: The proof is in our client success stories. Let me share a few. Let's start with content cloud. The system where a company's knowledge lives and gets put to work.

Speaker #3: At one of the world's largest technology firms, Aviator agents turn millions of HR records into instant, conversational, self-service, while keeping every record governed compliant and trusted.

Ayman Antoun: At one of the world's largest technology firms, OpenText Aviator Agents turn millions of HR records into instant conversational self-service while keeping every record governed, compliant, and trusted. Next, cybersecurity, the system that protects a company's data and keeps it running. At one of the world's leading telecom companies, where connectivity and security are the lifeblood of the business, OpenText Aviator Agents work inside network and data operations, helping teams find and fix vulnerabilities, cutting mean time to repair during an outage from one day to one hour. Next, OpenText Business Network, which moves transactions and data between companies. A third of Fortune 500 banks globally use OpenText Business Network. Overall, we process over $11 trillion in network commerce each year. When their corporate clients need to pay vendors and run payroll, our OpenText Trading Grid sits in the middle and makes it work, so payments flow reliably whatever the source.

Speaker #3: These early actions, with more to come this year, will make fiscal 2027 a foundation year for us to deliver growth in constant currency. The enterprise assessment concludes in a few months, and I look forward to sharing its outcome with you our multi-year strategic plan in early calendar year 2027.

Speaker #3: Next, cybersecurity. The system that protects a company's data and keeps it running. At one of the world's leading telecom companies, where connectivity and security are the lifeblood of the business, Aviator agents work inside network and data operations, helping teams find and fix vulnerabilities, cutting mean time to repair during an outage, from one day to one hour.

Ayman Antoun: At one of the world's leading telecom companies, where connectivity and security are the lifeblood of the business, OpenText Aviator Agents work inside network and data operations, helping teams find and fix vulnerabilities, cutting mean time to repair during an outage from one day to one hour. Next, OpenText Business Network, which moves transactions and data between companies. A third of Fortune 500 banks globally use OpenText Business Network. Overall, we process over $11 trillion in network commerce each year. When their corporate clients need to pay vendors and run payroll, our OpenText Trading Grid sits in the middle and makes it work, so payments flow reliably whatever the source. OpenText Aviator is built into OpenText Trading Grid, surfacing the right answers on demand, flagging risks before they become failures, and resolving issues in real time.

Speaker #3: This brings me to my final update. How we empower our clients with enterprise-grade data for AI. In the end, this is all about our client success, their moving from experimenting with AI to implementing AI at scale.

Ayman Antoun: They're moving from experimenting with AI to implementing AI at scale. Aviator is our OpenText AI platform available across our portfolio. Aviator agents turn secure, trusted data into AI outcomes you can trust. Since Aviator agents were introduced only 8 quarters ago, the number of deals where Aviator agents are integrated have more than doubled annually. When Aviator agents are included in our clients' deals, our deal size is four times larger. The proof is in our clients' success stories. Let me share a few. Let's start with Content Cloud, the system where a company's knowledge lives and gets put to work. At one of the world's largest technology firms, Aviator agents turn millions of HR records into instant conversational self-service while keeping every record governed, compliant, and trusted. Next, cybersecurity, the system that protects a company's data and keeps it running.

Speaker #3: Aviator is our OpenText AI platform, available across our portfolio. Aviator agents turn secure, trusted data into AI outcomes you can trust. Since Aviator agents were introduced only eight quarters ago, the number of deals where Aviator agents are integrated has more than doubled annually.

Speaker #3: Next, business network, which moves transactions and data between companies. A third of Fortune 500 banks globally, use Open TEXT business network. Overall, we process over 11 trillion dollars in network commerce each year.

Speaker #3: When their corporate clients need to pay vendors and run payroll, our business network trading grid sits in the middle and makes it work. So payments flow reliably whatever the source.

Speaker #3: And when Aviator agents are included in our clients' deals, our deal size is four times larger. The proof is in our client success stories.

Speaker #3: And Aviator is built into trading grid, surfacing the right answers on demand flagging risks before they become failures and resolving issues in real time.

Ayman Antoun: OpenText Aviator is built into OpenText Trading Grid, surfacing the right answers on demand, flagging risks before they become failures, and resolving issues in real time. Finally, Application Delivery Management, what we call ADM, the system that helps teams build, test, and deliver quality software faster. At a major healthcare provider, OpenText Aviator Agents are in their wards, an easy button. ADM automated testing, cutting mobile test effort by 35% with faster releases and more efficient product development cycles. We see growing demand across retail, banking, healthcare, oil and gas, and logistics, where clients are coming to us to embed OpenText Aviator Agents into the workflows. I have never been more confident in where we are headed. I will now hand it over to our CFO, Steve Rai, who will take you through our Q4 and full year 2026 results and our fiscal year 2027 outlook. Thank you.

Speaker #3: Let me share a few. Let's start with content cloud. The system where a company's knowledge lives and gets put to work. At one of the world's largest technology firms, Aviator agents turn millions of HR records into instant, conversational, self-service.

Speaker #3: And finally, application delivery management, what we call EDM, the system that helps teams build, test, and deliver quality software faster. At a major healthcare provider, Aviator agents are in their wards and easy button.

Ayman Antoun: Finally, Application Delivery Management, what we call ADM, the system that helps teams build, test, and deliver quality software faster. At a major healthcare provider, OpenText Aviator Agents are in their wards, an easy button. ADM automated testing, cutting mobile test effort by 35% with faster releases and more efficient product development cycles. We see growing demand across retail, banking, healthcare, oil and gas, and logistics, where clients are coming to us to embed OpenText Aviator Agents into the workflows. I have never been more confident in where we are headed. I will now hand it over to our CFO, Steve Rai, who will take you through our Q4 and full year 2026 results and our fiscal year 2027 outlook. Thank you.

Speaker #3: While keeping every record governed compliant and trusted. Next, cybersecurity. The system that protects a company's data and keeps it running. At one of the world's leading telecom companies, we're connectivity and security are the lifeblood of the business.

Speaker #3: EDM automated testing, cutting mobile test effort by 35% with faster releases and more efficient product development cycles. And we see growing demand across retail, banking, healthcare, oil and gas, and logistics.

Ayman Antoun: At one of the world's leading telecom companies, where connectivity and security are the lifeblood of the business, Aviator agents work inside network and data operations, helping teams find and fix vulnerabilities, cutting mean time to repair during an outage from one day to one hour. Next, Business Network, which moves transactions and data between companies. A third of Fortune 500 banks globally use OpenText Business Network. Overall, we process over $11 trillion in network commerce each year. When their corporate clients need to pay vendors and run payroll, our Business Network Trading Grid sits in the middle and makes it work, so payments flow reliably, whatever the source. Aviator is built into Trading Grid, surfacing the right answers on demand, flagging risks before they become failures, and resolving issues in real time.

Speaker #3: Aviator agents work inside network and data operations, helping teams find and fix vulnerabilities, cutting mean time to repair during an outage, from one day to one hour.

Speaker #3: Where clients are coming to us to embed Aviator agents into the workflows. I have never been more confident in where we are headed. I will now hand it over to our CFO, Steve Ray, who will take you through our Q4 and full year 2026 results, and our fiscal year 2027 outlook.

Speaker #3: Next, business network, which moves transactions and data between companies. A third of Fortune 500 banks globally, use OPEN TEXT Business Network. Overall, we process over 11 trillion dollars in network commerce each year.

Speaker #3: Thank you.

Speaker #1: Thank you, Eamon. Good morning, everyone, and thank you for joining us today. We are pleased to have delivered a solid finish to fiscal 26.

Steve Rai: Thank you, Amin. Good morning, everyone, and thank you for joining us today. We are pleased to have delivered a solid finish to fiscal 2026. The performance of our core business reflects the critical role that we play helping organizations unlock the value of their data as they advance AI initiatives. Our results underscore the strength of our operating model, which continues to perform consistently across market environments. Supported by a large, diversified, and highly recurring enterprise client base, we benefit from a foundation that provides both stability and visibility. This strength translates into healthy profit and strong cash flow generation, giving us flexibility to invest in innovation and growth opportunities while maintaining a robust balance sheet. Our balanced approach to capital allocation continues to support sustainable value creation while returning capital to shareholders and positions us well for the future. Now to Q4 and full year fiscal 2026 results.

Speaker #1: The performance of our core business reflects the critical role that we play helping organizations unlock the value of their data as they advance AI initiatives.

Speaker #3: And Aviator is built into Trading Grid, surfacing the right answers on demand, flagging risks before they become failures, and resolving issues in real time.

Speaker #1: Our results underscore the strength of our operating model, which continues to perform consistently across market environments. Supported by a large, diversified, and highly recurring enterprise client base, we benefit from a foundation that provides both stability and profit and strong cash flow generation, giving us flexibility to invest in innovation and growth opportunities, while maintaining a robust balance sheet.

Ayman Antoun: Finally, Application Delivery Management, what we call ADM, the system that helps teams build, test, and deliver quality software faster. At a major healthcare provider, Aviator agents are, in their words, an easy button. ADM automated testing cutting mobile test effort by 35% with faster releases and more efficient product development cycles. We see growing demand across retail, banking, healthcare, oil and gas, and logistics, where clients are coming to us to embed Aviator agents into the workflows. I have never been more confident in where we are headed. I will now hand it over to our CFO, Steve Rai, who will take you through our Q4 and full year 2026 results and our fiscal year 2027 outlook. Thank you.

Speaker #1: Our balanced approach to capital allocation continues to support sustainable value creation while returning capital to shareholders and positions as well for the future. Now to Q4 and full year fiscal 26 results.

Steve Rai: Our balanced approach to capital allocation continues to support sustainable value creation while returning capital to shareholders and positions us well for the future. Now to Q4 and full year fiscal 2026 results. Starting with revenues, in Q4, we had a strong performance in the cloud driven by contribution from AI. Total revenues of $1.35 billion were up 2.9% year over year or up 0.9% in constant currency terms. Total revenue for our core portfolio was $1.05 billion, up 5.3% year over year or up 3.1% in constant currency. Total cloud revenue was $503 million, up 6.0% or up 4.3% in constant currency. Cloud revenue for our core portfolio was $341 million, up 10.7% or 8.9% in constant currency.

Speaker #3: Clients are coming to us to embed Aviator agents into their workflows. I have never been more confident in where we are headed. I will now hand it over to our CFO, Steve Ray, who will take you through our Q4 and full year 2026 results, as well as our fiscal year 2027 outlook.

Speaker #1: Starting with revenues, in Q4 we had a strong performance in the cloud driven by contribution from AI. Total revenues of 1.35 billion were up 2.9% year over year, or up 0.9% in constant currency terms.

Steve Rai: Starting with revenues, in Q4, we had a strong performance in the cloud driven by contribution from AI. Total revenues of $1.35 billion were up 2.9% year over year or up 0.9% in constant currency terms. Total revenue for our core portfolio was $1.05 billion, up 5.3% year over year or up 3.1% in constant currency. Total cloud revenue was $503 million, up 6.0% or up 4.3% in constant currency. Cloud revenue for our core portfolio was $341 million, up 10.7% or 8.9% in constant currency. Just a reminder that our core business includes content, OpenText Business Network or BN, IT operations management or ITOM, and cybersecurity enterprise product categories. Q4 represents our 22nd consecutive quarter of organic cloud growth. We closed 64 cloud deals greater than one million in the quarter, an increase of 49% year over year.

Speaker #3: Thank you.

Speaker #1: Thank you, Amon. Good morning, everyone, and thank you for joining us today. We are pleased to have delivered a solid finish to fiscal '26.

Steve Rai: Thank you, Ayman. Good morning, everyone, and thank you for joining us today. We are pleased to have delivered a solid finish to fiscal 2026. The performance of our core business reflects the critical role that we play helping organizations unlock the value of their data as they advance AI initiatives. Our results underscore the strength of our operating model, which continues to perform consistently across market environments. Supported by a large, diversified, and highly recurring enterprise client base, we benefit from a foundation that provides both stability and visibility. This strength translates into healthy profit and strong cash flow generation, giving us flexibility to invest in innovation and growth opportunities while maintaining a robust balance sheet. Our balanced approach to capital allocation continues to support sustainable value creation while returning capital to shareholders and positions us well for the future.

Speaker #1: Total revenue for our core portfolio was 1.05 billion, up 5.3% year over year, or up 3.1% in constant currency. Total cloud revenue was 503 million, up 6.0%, or up 4.3% in constant currency.

Speaker #1: The performance of our core business reflects the critical role that we play helping organizations unlock the value of their data as they advance AI initiatives.

Speaker #1: Our results underscore the strength of our operating model which continues to perform consistently across market environments. Supported by a large diversified and highly recurring enterprise client base, we benefit from a foundation that provides both stability and visibility.

Speaker #1: Cloud revenue for our core portfolio was 341 million, up 10.7%, or 8.9% in constant currency. This is a reminder that our core business includes content, business network or BN, IT operations management or ITOM, and cybersecurity enterprise product categories.

Speaker #1: This strength translates into healthy profit and strong cash flow generation giving us flexibility to invest in innovation and growth opportunities while maintaining a robust balance sheet.

Steve Rai: Just a reminder that our core business includes content, OpenText Business Network or BN, IT operations management or ITOM, and cybersecurity enterprise product categories. Q4 represents our 22nd consecutive quarter of organic cloud growth. We closed 64 cloud deals greater than one million in the quarter, an increase of 49% year over year. The growth was driven by our core Content Cloud and BN categories, and many of these cloud deals included OpenText Aviator. For additional detail on product category performance, including core and non-core breakdowns, please see our investor relations material. Customer support revenue in the quarter was $554 million, down 4.6% year over year. As a reminder, this includes the impact from our divested eDOCS and Vertica businesses.

Speaker #1: Q4 represents our 22nd consecutive quarter. Organic cloud growth. We closed 64 cloud deals greater than 1 million in the quarter, an increase of 49% year over year.

Steve Rai: Now to Q4 and full year fiscal 2026 results. Starting with revenues, in Q4, we had a strong performance in the cloud driven by contribution from AI. Total revenues of $1.35 billion were up 2.9% year over year, or up 0.9% in constant currency terms. Total revenue for our core portfolio was $1.05 billion, up 5.3% year over year, or up 3.1% in constant currency. Total cloud revenue was $503 million, up 6.0%, or up 4.3% in constant currency. Cloud revenue for our core portfolio was $341 million, up 10.7%, or 8.9% in constant currency. Just a reminder that our core business includes Content, Business Network or BN, IT Operations Management or ITOM, and cybersecurity enterprise product categories. Q4 represents our 22nd consecutive quarter of organic cloud growth. We closed 64 cloud deals greater than $1 million in the quarter, an increase of 49% year over year.

Speaker #1: The growth was driven by our core content and BN categories and many of these cloud deals included Aviator. For additional detail on product category performance, including core and non-core breakdowns, please see our investor relations material.

Steve Rai: The growth was driven by our core Content Cloud and BN categories, and many of these cloud deals included OpenText Aviator. For additional detail on product category performance, including core and non-core breakdowns, please see our investor relations material. Customer support revenue in the quarter was $554 million, down 4.6% year over year. As a reminder, this includes the impact from our divested eDOCS and Vertica businesses. Annual recurring revenue or ARR was $1.06 billion, up 0.2% and representing 78.3% of our total revenue. Turning to bookings, enterprise cloud bookings were $295 million in Q4, up 24.1% year over year and above our fiscal 2026 target range of 16% to 20%. Q4 total RPO is up 7% year over year. Total CRPO is up 1% year over year, of which cloud CRPO is up 10%, partially offset by customer support and other CRPO by 6% year over year.

Speaker #1: Starting with revenues, in Q4 we had a strong performance in the cloud, driven by contributions from AI. Total revenues of $1.35 billion were up 2.9% year over year, or up 0.9% in constant currency terms.

Speaker #1: Customer support revenue in the quarter was 554 million, down 4.6% year over year. As a reminder, this includes the impact from our divested EDOX and Vertica businesses.

Speaker #1: Total revenue for our core portfolio was $1.05 billion, up 5.3% year over year, or up 3.1% in constant currency. Total cloud revenue was $503 million, up 6.0%, or up 4.3% in constant currency.

Speaker #1: Annual recurring revenue, or ARR, was 1.06 billion, up 0.2%, and representing 78.3% of our total revenue. Turning to bookings, enterprise cloud bookings were 295 million in Q4, up 24.1% year over year, and above our fiscal 26 target range of 16 to 20%.

Steve Rai: Annual recurring revenue or ARR was $1.06 billion, up 0.2% and representing 78.3% of our total revenue. Turning to bookings, enterprise cloud bookings were $295 million in Q4, up 24.1% year over year and above our fiscal 2026 target range of 16% to 20%. Q4 total RPO is up 7% year over year. Total CRPO is up 1% year over year, of which cloud CRPO is up 10%, partially offset by customer support and other CRPO by 6% year over year. The year over year increase in cloud CRPO was mainly due to strong bookings in Content Cloud and BN, partially offset by Cyber SMB&C. The decline in customer support and other CRPO would include the impact from our divested eDOCS and Vertica businesses. As we look ahead, we are streamlining our bookings-related disclosures.

Speaker #1: Q4 total RPO is up 7% year over year. Total CRPO is up 1% year over year, of which cloud CRPO is up 10%, partially offset by customer support and other CRPO by 6% year over year.

Speaker #1: Q4 represents our 22nd consecutive quarter of organic cloud growth. We closed 64 cloud deals greater than 1 million in the quarter, an increase of 49% year over year.

Speaker #1: The year over year increase in cloud CRPO was mainly due to strong bookings and content and BN, partially offset by cyber SMB and C.

Steve Rai: The year over year increase in cloud CRPO was mainly due to strong bookings in Content Cloud and BN, partially offset by Cyber SMB&C. The decline in customer support and other CRPO would include the impact from our divested eDOCS and Vertica businesses. As we look ahead, we are streamlining our bookings-related disclosures. Given our reporting of cloud CRPO and total RPO, both widely recognized indicators of future revenue and demand, we will no longer report enterprise cloud bookings as a standalone metric starting in Q1 of fiscal 2027. This change reflects our commitment to providing investors with the most relevant information while simplifying our disclosure framework and improving consistency with broader industry practice. On profitability, GAAP gross margin was 75.0%, up 270 basis points year over year, and non-GAAP gross margin was 78.3%, up 220 basis points.

Speaker #1: The growth was driven by our core Content and BN categories, and many of these cloud deals included Aviator. For additional detail on product category performance, including core and non-core breakdowns, please see our investor relations material.

Steve Rai: The growth was driven by our core content and BN categories, many of these cloud deals included Aviator. For additional detail on product category performance, including core and non-core breakdowns, please see our investor relations material. Customer support revenue in the quarter was $554 million, down 4.6% year over year. As a reminder, this includes the impact from our divested eDOCS and Vertica businesses. Annual recurring revenue or ARR was $1.06 billion, up 0.2%, and representing 78.3% of our total revenue. Turning to bookings, enterprise cloud bookings were $295 million in Q4, up 24.1% year over year, and above our fiscal 2026 target range of 16% to 20%. Q4 total RPO is up 7% year over year. Total CRPO is up 1% year over year, of which cloud CRPO is up 10%, partially offset by customer support and other CRPO by 6% year over year.

Speaker #1: The decline in customer support and other CRPO would include the impact from our divested EDOX and Vertica businesses. As we look ahead, we are streamlining our bookings related disclosures.

Speaker #1: Customer support revenue in the quarter was 554 million, down 4.6% year over year. As a reminder, this includes the impact from our divested EDOCs and Vertica businesses.

Speaker #1: Given our reporting of cloud CRPO and total RPO, both widely recognized indicators of future revenue and demand, we will no longer report enterprise cloud bookings as a standalone metric, starting in Q1 of fiscal 27.

Steve Rai: Given our reporting of cloud CRPO and total RPO, both widely recognized indicators of future revenue and demand, we will no longer report enterprise cloud bookings as a standalone metric starting in Q1 of fiscal 2027. This change reflects our commitment to providing investors with the most relevant information while simplifying our disclosure framework and improving consistency with broader industry practice. On profitability, GAAP gross margin was 75.0%, up 270 basis points year over year, and non-GAAP gross margin was 78.3%, up 220 basis points. The increase year over year reflects the continued improvement of cloud gross margin, mainly related to lower hyperscaler costs and infrastructure performance improvements. GAAP net income was $156 million, up 439.9% year over year. Non-GAAP net income was $299 million, up 19.7% year over year.

Speaker #1: Annual recurring revenue or ARR was 1.06 billion, up 0.2%, and representing 78.3% of our total revenue. Turning to bookings, enterprise cloud bookings were 295 million in Q4, up 24.1% year over year, and above our fiscal 26 target range of 16th to 20%.

Speaker #1: This change reflects our commitment to providing investors with the most relevant information while simplifying our disclosure framework and improving consistency with broader industry practice.

Speaker #1: On profitability, gap gross margin was 75.0%, up 270 basis points year over year. And non-gap gross margin was 78.3%, up 220 basis points. The increase year over year reflects the continued improvement of cloud gross margin, mainly related to lower hyperscaler costs and infrastructure performance improvements.

Speaker #1: Q4 total RPO is up 7% year over year. Total CRPO is up 1% year over year, of which cloud CRPO is up 10%, partially offset by customer support and other CRPO by 6% year over year.

Steve Rai: The increase year over year reflects the continued improvement of cloud gross margin, mainly related to lower hyperscaler costs and infrastructure performance improvements. GAAP net income was $156 million, up 439.9% year over year. Non-GAAP net income was $299 million, up 19.7% year over year. GAAP diluted EPS was $0.64, up 481.8% year over year. Non-GAAP diluted EPS was $1.23, up 26.8%. The increase in GAAP net income and diluted EPS was primarily due to higher profit, unrealized derivative gains, FX, and gain on sale from divestitures. Operating cash flow for the quarter was $186 million, up 17.5% year over year, helped by the strong quarterly performance and ongoing streamlining of the business. Free cash flow was $122 million, down 1.6%, and relatively consistent year over year.

Speaker #1: Gap net income was 156 million, up year. Non-gap net income was 299 million, up 19.7% year over year. Gap diluted EPS was 64 cents, up 481.8% year over year.

Speaker #1: The year over year increase in cloud CRPO was mainly due to strong bookings and content and BN, partially offset by cyber SMB and C.

Steve Rai: The year over year increase in cloud CRPO was mainly due to strong bookings in content and BN, partially offset by cyber SMB and C. The decline in customer support and other CRPO would include the impact from our divested eDOCS and Vertica businesses. As we look ahead, we are streamlining our bookings-related disclosures. Given our reporting of cloud CRPO and total RPO, both widely recognized indicators of future revenue and demand, we will no longer report enterprise cloud bookings as a standalone metric starting in Q1 of fiscal 2027. This change reflects our commitment to providing investors with the most relevant information while simplifying our disclosure framework and improving consistency with broader industry practice. On profitability, GAAP gross margin was 75.0%, up 270 basis points year over year, and non-GAAP gross margin was 78.3%, up 220 basis points.

Speaker #1: The decline in customer support and other CRPO would include the impact from our divested EDocs and Vertica businesses. As we look ahead, we are streamlining our bookings-related disclosures.

Steve Rai: GAAP diluted EPS was $0.64, up 481.8% year over year. Non-GAAP diluted EPS was $1.23, up 26.8%. The increase in GAAP net income and diluted EPS was primarily due to higher profit, unrealized derivative gains, FX, and gain on sale from divestitures. Operating cash flow for the quarter was $186 million, up 17.5% year over year, helped by the strong quarterly performance and ongoing streamlining of the business. Free cash flow was $122 million, down 1.6%, and relatively consistent year over year. For the full fiscal year 2026, total revenues were $5.2 billion, up 1.5% year over year, or down 1.1% in constant currency terms. Total revenue for our core portfolio was $4.0 billion, up 2.9% year over year and consistent in constant currency terms.

Speaker #1: Non-gap diluted EPS was $1.23, up 26.8%. The increase in gap net income and diluted EPS was primarily due to higher profit, unrealized derivative gains, FX, and gain on sale from divestitures.

Speaker #1: Operating cash flow for the quarter was 186 million, up 17.5% year over year, helped by the strong quarterly performance and ongoing streamlining of the business.

Speaker #1: This change reflects our commitment to providing investors with the most relevant information, while simplifying our disclosure framework and improving consistency with broader industry practice.

Speaker #1: Free cash flow was 122 million, down 1.6%, and relatively consistent year over year. For the full fiscal year 26, total revenues were 5.2 billion, up 1.5% year over year, or down 1.1% in constant currency terms.

Speaker #1: On profitability, GAAP gross margin was 75.0%, up 270 basis points year over year, and non-GAAP gross margin was 78.3%, up 220 basis points. The increase year over year reflects the continued improvement of cloud gross margin, mainly related to lower hyperscaler costs and infrastructure performance improvements.

Steve Rai: For the full fiscal year 2026, total revenues were $5.2 billion, up 1.5% year over year, or down 1.1% in constant currency terms. Total revenue for our core portfolio was $4.0 billion, up 2.9% year over year and consistent in constant currency terms. Cloud revenue growth continues to drive the business with total cloud revenue of $2.0 billion, up 5.5%, or up 3.4% in constant currency. Cloud revenue for our core portfolio was $1.3 billion, up 10.3% year over year, or 7.8% year over year in constant currency. On a reported basis, customer support revenue was down 2.0%. License revenue was up 8.4%, and professional services and other revenue was down 8.6%. As a reminder, the year over year compare for our on-prem business reflects the impact from our divested eDOCS and Vertica businesses.

Speaker #1: Total revenue for our core portfolio was 4.0 billion, up 2.9% year over year, and consistent in constant currency terms. Cloud revenue growth continues to drive the business, with total cloud revenue of 2.0 billion, up 5.5%, or up 3.4% in constant currency.

Speaker #1: Gap net income was 156 million, up 439.9% year over year. Non-gap net income was 299 million, up 19.7% year over year. Gap diluted EPS was 64 cents, up 481.8% year over year.

Steve Rai: Cloud revenue growth continues to drive the business with total cloud revenue of $2.0 billion, up 5.5%, or up 3.4% in constant currency. Cloud revenue for our core portfolio was $1.3 billion, up 10.3% year over year, or 7.8% year over year in constant currency. On a reported basis, customer support revenue was down 2.0%. License revenue was up 8.4%, and professional services and other revenue was down 8.6%. As a reminder, the year over year compare for our on-prem business reflects the impact from our divested eDOCS and Vertica businesses. On net renewal rates, our cloud net renewal rate was 94%, down 180 basis points year-over-year and in line with historical levels. Our customer support net renewal rate was 93%, up from 91% year-over-year, and also consistent with historical levels.

Speaker #1: Cloud revenue for our core portfolio was 1.3 billion, up 10.3% year over year, or 7.8% year over year in constant currency. On a reported basis, customer support revenue was down 2.0%.

Speaker #1: Non-GAAP diluted EPS was $1.23, up 26.8%. The increase in GAAP net income and diluted EPS was primarily due to higher profit from unrealized derivative gains, FX, and gain on sale from divestitures.

Speaker #1: License revenue was up 8.4%, and professional services and other revenue was down 8.6%. As a reminder, the year over year compare for our on-prem business reflects the impact from our divested EDOX and Vertica businesses.

Speaker #1: Operating cash flow for the quarter was $186 million, up 17.5% year over year, helped by the strong quarterly performance and ongoing streamlining of the business.

Speaker #1: Free cash flow was $122 million, down 1.6% and relatively consistent year over year. For the full fiscal year '26, total revenues were $5.2 billion, up 1.5% year over year, or down 1.1% in constant currency terms.

Speaker #1: On net renewal rates, our cloud net renewal rate was 94%, down 180 basis points year over year, and in line with historical levels. Our customer support net renewal rate was 93%, up from 91% year over year, and also consistent with historical levels.

Steve Rai: On net renewal rates, our cloud net renewal rate was 94%, down 180 basis points year-over-year and in line with historical levels. Our customer support net renewal rate was 93%, up from 91% year-over-year, and also consistent with historical levels. On profitability and cash flow, GAAP operating margin was 20.6%, up 340 basis points. Adjusted EBITDA margin was 36.3%, up 170 basis points. The increase was mainly due to continued streamlining of operations, including the business optimization plan and FX. GAAP diluted EPS was $2.58, up 56.4%. Non-GAAP diluted EPS was $4.42, up 15.7%. Operating cash flow was $1.0 billion, up 21.2%, and free cash flow was $808 million, up 17.5% year-over-year. Fiscal 2026 free cash flow, while strong, came in approximately $31 million below our fiscal 2026 outlook, mainly due to collections timing near the year-end cutoff.

Steve Rai: For the full fiscal year 2026, total revenues were $5.2 billion, up 1.5% year over year, or down 1.1% in constant currency terms. Total revenue for our core portfolio was $4.0 billion, up 2.9% year over year, and consistent in constant currency terms. Cloud revenue growth continues to drive the business with total cloud revenue of $2.0 billion, up 5.5%, or up 3.4% in constant currency. Cloud revenue for our core portfolio was $1.3 billion, up 10.3% year over year or 7.8% year over year in constant currency. On a reported basis, customer support revenue was down 2.0%. License revenue was up 8.4%, and professional services and other revenue was down 8.6%. As a reminder, the year over year compare for our on-prem business reflects the impact from our divested eDOCS and Vertica businesses.

Speaker #1: On profitability and cash flow, gap operating margin was 20.6%, up 340 basis points, adjusted EBITDA margin was 36.3%, up 170 basis points, increase was mainly due to continued streamlining of operations, including the business optimization plan and FX.

Steve Rai: On profitability and cash flow, GAAP operating margin was 20.6%, up 340 basis points. Adjusted EBITDA margin was 36.3%, up 170 basis points. The increase was mainly due to continued streamlining of operations, including the business optimization plan and FX. GAAP diluted EPS was $2.58, up 56.4%. Non-GAAP diluted EPS was $4.42, up 15.7%. Operating cash flow was $1.0 billion, up 21.2%, and free cash flow was $808 million, up 17.5% year-over-year. Fiscal 2026 free cash flow, while strong, came in approximately $31 million below our fiscal 2026 outlook, mainly due to collections timing near the year-end cutoff. As we enter fiscal 2027, which is an important foundation year for our next phase of growth, as Eamonn laid out, we provide the following outlook ranges.

Speaker #1: Cloud revenue for our core portfolio was Was 1.3 billion , up 10.3% year over year , or 7.8% year over year , in constant currency On a reported basis , customer support revenue was down 2.0% .

Speaker #1: Gap diluted EPS was $2.58, up 56.4%, and non-gap diluted EPS was $4.42, up 15.7%. Operating cash flow was 1.0 billion, up 21.2%, and free cash flow was 808 million, up 17.5% year over year.

Speaker #1: License revenue was up 8.4% , and professional services and other revenue was down 8.6% . As a reminder , the year over year compare for our on prem business reflects the impact from our divested edocs and Vertica businesses On net renewal rates .

Speaker #1: Fiscal 26 free cash flow while strong came in approximately 31 million below our fiscal 26 outlook, mainly due to collections timing near the year-end cutoff.

Steve Rai: On net renewal rates, our cloud net renewal rate was 94%, down 180 basis points year over year and in line with historical levels. Our customer support net renewal rate was 93%, up from 91% year over year, and also consistent with historical levels. On profitability and cash flow, GAAP operating margin was 20.6%, up 340 basis points. Adjusted EBITDA margin was 36.3%, up 170 basis points. The increase was mainly due to continued streamlining of operations, including the business optimization plan and FX. GAAP diluted EPS was $2.58, up 56.4%, and non-GAAP diluted EPS was $4.42, up 15.7%. Operating cash flow was $1.0 billion, up 21.2%, and free cash flow was $808 million, up 17.5% year over year. Fiscal 2026 free cash flow, while strong, came in approximately $31 million below our fiscal 2026 outlook, mainly due to collections timing near the year-end cutoff.

Speaker #1: Our cloud net renewal rate was 94% , down 180 basis points year over year , and in line with historical levels , our customer support , net renewal rate was 93% , up from 91% year over year , and also consistent with historical levels .

Speaker #1: As we entered fiscal 27, which is an important foundation year for our next phase of growth, as Eamon laid out, we provide the following outlook ranges.

Steve Rai: As we enter fiscal 2027, which is an important foundation year for our next phase of growth, as Eamonn laid out, we provide the following outlook ranges. On a reported basis, we expect total revenues to be $5.135 billion to $5.185 billion, or -2% to -1%, inclusive of an approximate $30 million foreign currency headwind at current rates. Total revenue growth is expected to be 0% to 1% in constant currency terms, excluding divestitures. Total core revenue growth is expected to be +2% to +3% in constant currency terms. We expect each of our four core businesses to grow in fiscal 2027 in constant currency. Again, at current rates, approximately 25 of the $30 million FX headwind relates to core revenue. Core cloud revenue growth is expected to continue its momentum at 8% to 10% in constant currency terms.

Speaker #1: On a reported basis, we expect total revenues to be 5.135 billion, to 5.185 billion, or negative 2 to negative 1%, inclusive of an approximate 30 million foreign currency headwind at current rates.

Steve Rai: On a reported basis, we expect total revenues to be $5.135 billion to $5.185 billion, or -2% to -1%, inclusive of an approximate $30 million foreign currency headwind at current rates. Total revenue growth is expected to be 0% to 1% in constant currency terms, excluding divestitures. Total core revenue growth is expected to be +2% to +3% in constant currency terms. We expect each of our four core businesses to grow in fiscal 2027 in constant currency. Again, at current rates, approximately 25 of the $30 million FX headwind relates to core revenue. Core cloud revenue growth is expected to continue its momentum at 8% to 10% in constant currency terms. We expect an approximate $5 million FX headwind on core cloud revenue.

Speaker #1: On profitability and cash flow GAAP operating margin was 20.6% , up 340 basis points . Adjusted EBITDA margin was 36.3% , up 170 basis points .

Speaker #1: Total revenue growth is expected to be 0 to 1% in constant currency terms, excluding divestitures. Total core revenue growth is expected to be positive 2 to 3% in constant currency terms.

Speaker #1: The increase was mainly due to continued streamlining of operations , including the business optimization plan and FX . GAAP diluted EPS was $2.58 , up 56.4% .

Speaker #1: We expect each of our four core businesses to grow in fiscal 27 in constant currency. Again, at current rates, approximately 25 of the 30 million FX headwind relates to core revenue.

Speaker #1: non-GAAP diluted EPS was $4.42 , up 15.7% , operating cash flow was 1.0 billion , up 21.2% , and free cash flow was 808 million , up 17.5% year over year Fiscal 26 free cash flow , while strong , came in approximately $31 million below our fiscal 26 outlook , mainly due to collections , timing near the year end cutoff .

Speaker #1: Core cloud revenue growth is expected to continue its momentum at 8 to 10 percent in constant currency terms. We expect an approximate 5 million FX headwind on core cloud revenue.

Steve Rai: We expect an approximate $5 million FX headwind on core cloud revenue. Adjusted EBITDA margin is expected to be in the range of 32% to 33%. As Eamonn mentioned earlier, we are taking early actions to drive growth, and this includes increasing sales capacity, investing in our partner ecosystem to expand market reach, and shifting more R&D investment into our core portfolio, cloud capabilities, and AI offerings. These investments are estimated in the $100 to $200 million range and are weighted towards our go-to-market initiatives and moderate our adjusted EBITDA margin range for the fiscal year 2027. Free cash flow is expected to be in the range of $625 to $725 million. This factors in our growth investment plan, expectations around CapEx, and working capital items, including tax payments, and of course, the natural impact of the divestiture of our profitable eDOCS and Vertica businesses in fiscal 2026.

Speaker #1: Adjusted EBITDA margin is expected to be in the range of 32 to 33 percent. As Eamon mentioned earlier, we are taking early actions to drive growth, and this includes increasing sales capacity investing in our partner ecosystem to expand market reach and shifting more R&D investment into our core portfolio.

Steve Rai: Adjusted EBITDA margin is expected to be in the range of 32% to 33%. As Eamonn mentioned earlier, we are taking early actions to drive growth, and this includes increasing sales capacity, investing in our partner ecosystem to expand market reach, and shifting more R&D investment into our core portfolio, cloud capabilities, and AI offerings. These investments are estimated in the $100 to $200 million range and are weighted towards our go-to-market initiatives and moderate our adjusted EBITDA margin range for the fiscal year 2027. Free cash flow is expected to be in the range of $625 to $725 million. This factors in our growth investment plan, expectations around CapEx, and working capital items, including tax payments, and of course, the natural impact of the divestiture of our profitable eDOCS and Vertica businesses in fiscal 2026.

Speaker #1: As we enter fiscal 27 , which is an important foundation year for our next phase of growth . As Eamonn laid out , we provide the following outlook ranges on a reported basis , we expect total revenues to be 5.135 billion to 5.185 billion , or negative two to -1% .

Steve Rai: As we enter fiscal 2027, which is an important foundation year for our next phase of growth, as Ayman laid out, we provide the following outlook ranges. On a reported basis, we expect total revenues to be $5.135 billion to $5.185 billion, or -2% to -1%, inclusive of an approximate $30 million foreign currency headwind at current rates. Total revenue growth is expected to be 0% to 1% in constant currency terms, excluding divestitures. Total core revenue growth is expected to be +2% to 3% in constant currency terms. We expect each of our four core businesses to grow in fiscal 2027 in constant currency. Again, at current rates, approximately $25 of the $30 million FX headwind relates to core revenue. Core cloud revenue growth is expected to continue its momentum at 8% to 10% in constant currency terms.

Speaker #1: Cloud capabilities and AI offerings. These investments are estimated in the 100 to 200 million range and are weighted towards our go-to-market initiatives and moderate our adjusted EBITDA margin range for the fiscal year 27.

Speaker #1: Inclusive of an approximate 30 million foreign currency headwind . At current rates , total revenue growth is expected to be 0 to 1% in constant currency terms , excluding divestitures , total core revenue growth is expected to be positive 2 to 3% in constant currency terms , we expect each of our four core businesses to grow in fiscal 27 in constant currency , again at current approximately 25 of the 30 million FX headwind relates to core revenue Core cloud revenue growth is expected to continue its momentum at 8 to 10% in constant currency terms , we expect an approximate 5 million FX headwind on core cloud revenue Adjusted EBITDA margin is expected to be in the range of 32 to 33% .

Speaker #1: Free cash flow is expected to be in the range of 625 to 725 million. This factors in our growth investment plan expectations around capex and working capitalized items, including tax payments, and of course, the natural impact of the divestiture of our profitable EDOX and Vertica businesses in fiscal 26.

Speaker #1: Turning to our outlook for Q1 fiscal 27, we expect total revenue to be in the range of 1.22 billion to 1.25 billion, and an adjusted EBITDA margin range of 32% to 33%.

Steve Rai: Turning to our outlook for Q1 fiscal 2027, we expect total revenue to be in the range of $1.22 billion to $1.25 billion, and an adjusted EBITDA margin range of 32% to 33%. The targets I have outlined do not reflect the impact of any potential future divestitures, and therefore may be revised accordingly. We continue to see growing cloud adoption as clients prepare their data environments for AI. We view this as a long-term tailwind for cloud growth, supporting expansion in both RPO and adjusted EBITDA over time. Turning to our capital allocation strategy. We prioritize across four key areas: debt reduction, organic growth investments, dividend payout, and share repurchases. This balanced approach reflects our commitment to strengthening the balance sheet while continuing to innovate for sustainable long-term growth and returning capital to shareholders.

Steve Rai: We expect an approximate $5 million FX headwind on core cloud revenue. Adjusted EBITDA margin is expected to be in the range of 32% to 33%. As Ayman mentioned earlier, we are taking early actions to drive growth, and this includes increasing sales capacity, investing in our partner ecosystem to expand market reach, and shifting more R&D investment into our core portfolio, cloud capabilities, and AI offerings. These investments are estimated in the $100 to $200 million range and are weighted towards our go-to-market initiatives and moderate our Adjusted EBITDA margin range for the fiscal year 2027. Free cash flow is expected to be in the range of $625 to $725 million. This factors in our growth investment plan, expectations around CapEx and working capital items, including tax payments, and of course, the natural impact of the divestiture of our profitable eDOCS and Vertica businesses in fiscal 2026.

Speaker #1: The targets I have outlined do not reflect the impact of any potential future divestitures, and therefore may be revised accordingly. We continue to see growing cloud adoption as clients prepare their data environments for AI.

Speaker #1: As Aman mentioned earlier , we are taking early actions to drive growth , and this includes increasing sales capacity , investing in our partner ecosystem to expand market reach and shifting more R&D investment into our core portfolio , cloud capabilities and AI offerings .

Speaker #1: We view this as a long-term tailwind for cloud growth, supporting expansion in both RPO and adjusted EBITDA over time. Turning to our capital allocation strategy, we prioritize across four key areas.

Speaker #1: These investments are estimated in the 100 to 200 million range and are weighted towards our go to market initiatives and moderate our adjusted EBITDA margin range for the fiscal year 27 .

Speaker #1: Debt reduction, organic growth investments, dividend payout, and share repurchases. This balanced approach reflects our commitment to strengthening the balance sheet while continuing to innovate for sustainable long-term growth and returning capital to shareholders.

Speaker #1: Free cash flow is expected to be in the range of 625 to 725 million . This factors in our growth investment plan expectations around CapEx and working capital items , including tax payments and of course , the natural impact of the divestiture of our profitable Edocs and Vertica businesses in fiscal 26 .

Speaker #1: We are confident in our ability to meet upcoming debt maturities supported by the strength of our cash flow generation previously discussed. We have used net proceeds from our recent divestitures to pay down our debt.

Steve Rai: We are confident in our ability to meet upcoming debt maturities, supported by the strength of our cash flow generation previously discussed. We have used net proceeds from our recent divestitures to pay down our debt. In Q4, we reduced debt by $459 million, including a $300 million discretionary debt repayment from available liquidity and $150 million net proceeds from divestitures, and delivered total debt reduction of $649 million in fiscal 2026. Our net leverage ratio has reduced from 3.02 times to 2.75 times, now in line with our historical target range of 2.5 to 3 times. We expect to access the debt markets over the coming quarters to refinance upcoming maturities and optimize our capital structure.

Speaker #1: Turning to our outlook for Q1 fiscal 27 , we expect total revenue to be in the range of 1.22 billion to 1.25 billion , and an adjusted EBITDA margin range of 32% to 33% .

Steve Rai: Turning to our outlook for Q1 fiscal 2027, we expect total revenue to be in the range of $1.22 billion to $1.25 billion, and an Adjusted EBITDA margin range of 32% to 33%. The targets I have outlined do not reflect the impact of any potential future divestitures and therefore may be revised accordingly. We continue to see growing cloud adoption as clients prepare their data environments for AI. We view this as a long-term tailwind for cloud growth, supporting expansion in both RPO and Adjusted EBITDA over time. Turning to our capital allocation strategy, we prioritize across four key areas: debt reduction, organic growth investments, dividend payout, and share repurchases. This balanced approach reflects our commitment to strengthening the balance sheet while continuing to innovate for sustainable long-term growth and returning capital to shareholders.

Speaker #1: In Q4, we reduced debt by 459 million including 300 million discretionary debt repayment from available liquidity, and 150 million net proceeds from divestitures, and delivered total debt reduction of 649 million in fiscal 26.

Speaker #1: Our net leverage ratio has reduced from 3.02 times to 2.75 times, now in line with our historical target range of 2.5 to 3 times.

Speaker #1: We expect to access a debt markets over the coming quarters to refinance upcoming maturities and optimize our capital structure. In fiscal 26, we returned 268.4 million via dividends and the board declared a quarterly dividend of 28 cents per share, payable on September 18, 2026, to shareholders of record on September 4, 2026.

Speaker #1: We view this as a long term tailwind for cloud growth , supporting expansion in both RPO and adjusted EBITDA over time Turning to our capital allocation strategy , we prioritize across four key areas debt reduction , organic growth , investments , dividend payout and share repurchases .

Steve Rai: In fiscal 2026, we returned $268.4 million via dividends, and the board declared a quarterly dividend of $0.28 per share, payable on 18 September 2026, to shareholders of record on 4 September 2026. We also repurchased and canceled approximately 14.8 million shares in fiscal 2026, or 6% of our common shares outstanding. We have renewed our NCIB for fiscal 2027 to repurchase up to 10% of the company's public float as of 31 July 2026. Our divestiture strategy remains active and disciplined. We are not inclined to divest non-core assets at any cost. These businesses continue to generate positive margins and cash flow, and we will remain opportunistic in pursuing transactions with shareholder value in mind. Overall, we are pleased with our Q4 and full-year performance.

Speaker #1: This balanced approach reflects our commitment to strengthening the balance sheet while continuing to innovate for sustainable long-term growth and returning capital to shareholders.

Speaker #1: We also repurchased and canceled approximately 14.8 million shares in fiscal 26, or 6% of our common shares outstanding. We have renewed our NCIB for fiscal 27 to repurchase up to 10% of the company's public float as of July 31, 2026.

Speaker #1: We are confident in our ability to meet upcoming debt maturities , supported by the strength of our cash flow generation . Previously discussed , we have used net proceeds from our recent divestitures to pay down our debt in Q4 , we reduced debt by 459 million , including a 300 million discretionary debt repayment from available liquidity and 150 million net proceeds from divestitures and delivered total debt reduction of 649 million in fiscal 26 .

Speaker #1: Our divestiture strategy remains active and disciplined. We are not inclined to divest non-core assets at any cost. These businesses continue to generate positive margins and cash flow, and we will remain opportunistic in pursuing transactions with shareholder value in mind.

Speaker #1: Our net leverage ratio has reduced from 3.02 times to 2.75 times . Now , in line with our historical target range of two and a half to three times , we expect to access a debt markets over the coming quarters to refinance upcoming maturities and optimize our capital structure .

Speaker #1: Overall, we are pleased with our fourth quarter and full year performance. As mentioned, looking ahead to fiscal 27, we expect revenue for our core business to grow 2 to 3 percent on a constant currency basis, we remain confident in our strategic direction, and believe we have built a solid foundation to execute on our growth strategies.

Steve Rai: As mentioned, looking ahead to fiscal 2027, we expect revenue for our core business to grow 2% to 3% on a constant currency basis. We remain confident in our strategic direction and believe we have built a solid foundation to execute on our growth strategies. With that, we conclude our prepared remarks. Operator, please open the line for questions.

Speaker #1: In fiscal 26 , we returned 268.4 million via dividends , and the board declared a quarterly dividend of $0.28 per share , payable on September 18 , 2026 , to shareholders of record on September 4th , 2026 .

Steve Rai: In fiscal 2026, we returned $268.4 million via dividends, the board declared a quarterly dividend of $0.28 per share, payable on 18 September 2026, to shareholders of record on 4 September 2026. We also repurchased and canceled approximately 14.8 million shares in fiscal 2026, or 6% of our common shares outstanding. We have renewed our NCIB for fiscal 2027 to repurchase up to 10% of the company's public float as of 31 July 2026. Our divestiture strategy remains active and disciplined. We are not inclined to divest non-core assets at any cost. These businesses continue to generate positive margins and cash flow, and we will remain opportunistic in pursuing transactions with shareholder value in mind. Overall, we are pleased with our Q4 and full-year performance.

Speaker #1: With that, we conclude our prepared remarks, operator, please open the line for questions.

Speaker #2: Certainly. We'll now begin the question and answer session. Analysts who wish to ask a question may press star then 1 on their touchstone phone to join the question queue.

Operator: Certainly. We will now begin the question and answer session. Analysts who wish to ask a question may press star then one on their touch-tone phone to join the question queue. You will hear a tone acknowledging your request. If you are using a speakerphone, please ensure you lift your handset before pressing any keys. If you wish to remove yourself from the question queue, you may press star then two. Anyone who has a question may press star then one at this time. Our first question is from Kevin Krishnaratne with Scotiabank. Please go ahead.

Speaker #1: We also repurchased and canceled approximately 14.8 million shares in fiscal 26 , or 6% of our common shares outstanding . We have renewed our NCIB for fiscal 27 to repurchase up to 10% of the company's public float as of July 31st , 2026 .

Speaker #2: You will hear a tone acknowledging your request. If you're using a speakerphone, please ensure you lift your handset before pressing any keys. If you wish to remove yourself from the question queue, you may press star then 2.

Speaker #2: Anyone who has a question may press star then 1 at this time. Our first question is from Kevin Krishnaratne with Scotiabank. Please go ahead.

Speaker #1: Our divestiture strategy remains active and disciplined . We are not inclined to divest non-core assets at any cost . These businesses generate positive margins and cash flow , and we will remain opportunistic in pursuing transactions with shareholder value in mind Overall , we are pleased with our fourth quarter and full year performance .

Speaker #3: Hey there. Good morning. I wanted to talk about the core growth expectations for 27. You laid out 2 to 3 percent. Wondering if you can unpack thoughts across the various segments, in particular your content was up 1% last year.

Kevin Krishnaratne: Hey there. Good morning. I wanted to talk about the core growth expectations for 2027. You laid out 2% to 3%. Wondering if you can unpack thoughts across the various segments. In particular, your content was up 1% last year. Does that continue to move higher? In particular, the strategies that you have in place for the ITOM and the cyber businesses, which were down 3% last year. Just would love your thoughts. Thanks.

Speaker #3: Does that continue to move higher? And then in particular, the strategies that you have in place for the ITOM and the cyber businesses, which were down 3% last year, just would love your thoughts next.

Speaker #1: As mentioned, looking ahead to fiscal '27, we expect revenue for our core business to grow 2% to 3% on a constant currency basis.

Speaker #1: We remain confident in our strategic direction and believe we have built a solid foundation to execute on our growth strategies With that , we conclude our prepared remarks Operator , please open the line for questions

Speaker #4: Hey Kevin, good morning, and thank you for the question. It's Eamon. Let me just start and Steve can join. It's very important for us that each category of core growth, and that's the commitment that we have in the outlook that we have as well, we today feel that content as a subset of core will be in a faster growth trajectory than the total of core.

Ayman Antoun: Hey, Kevin. Good morning, and thank you for the question. It's Eamonn. Let me just start, and Steve can join. It's very important for us that each category of core growth, and that's the commitment that we have and the outlook that we have as well. We today feel that content as a subset of core will be in a faster growth trajectory than the total of core, and we expect cyber and ITOM to also grow in FY2027. Part of it is the way that you've heard Steve say it, we're redirecting more of our R&D dollars towards the category of core. It's not going to be a peanut butter approach across all four categories, but cyber will be one of the components of core that will get an injection of some of the reallocation.

Speaker #2: Certainly. We'll now begin the question and answer session. Analysts who wish to ask a question may press star, then one on your touchtone phone to join the question queue.

Operator: Certainly. We'll now begin the question and answer session. Analysts who wish to ask a question may press star then one on their touch-tone phone to join the question queue. You will hear a tone acknowledging your request. If you're using a speakerphone, please ensure you lift your handset before pressing any keys. If you wish to remove yourself from the question queue, you may press star then two. Anyone who has a question may press star then one at this time. Our first question is from Kevin Krishnaratne with Scotiabank. Please go ahead.

Speaker #2: You will hear a tone acknowledging your request . If you're using a speakerphone , please ensure you lift your handset before pressing any keys .

Speaker #4: And we expect cyber and FY 27 in part of it is the way that you've heard Steve say it, we're redirecting more of our R&D dollars towards the category of core it's not going to be a peanut butter approach across all four categories, but cyber will be one of the components of core.

Speaker #2: If you wish to remove yourself from the question queue, you may press star, then two. Anyone who has a question may press star, then one.

Speaker #2: At this time Our first question is from Kevin Krishnaraj with Scotiabank . Please go ahead .

Speaker #3: Hey there . Good morning . I wanted to talk about the core growth expectations for 27 . You laid out 2 to 3% .

Kevin Krishnaratne: Hey there. Good morning. I wanted to talk about the core growth expectations for 2027. You laid out 2% to 3%. Wondering if you could kind of unpack thoughts across the various segments. In particular, your content was up 1% last year. Does that continue to move higher? In particular, the strategies that you have in place for the ITOM and the cyber businesses, which were down 3% last year. Just would love your thoughts. Thanks.

Speaker #4: That will get an injection of some of the reallocation. In addition to the way we're going to reallocate is being very precise around infusing more AI capabilities in each of the core categories and accelerating the cloud versions of each one of those categories as well.

Ayman Antoun: In addition to the way we're going to reallocate is being very precise around infusing more AI capabilities in each of the core categories and accelerating the cloud versions of each one of those categories as well.

Speaker #3: Wondering if you unpack , , you know , thoughts across the various segments in particular , your content was up 1% last year .

Speaker #3: Does that continue to move higher ? And then in particular , the strategies that you have in place for , for the item and the cyber businesses , which were down 3% last year , just would love your thoughts .

Speaker #3: Okay. Thanks for that. Maybe related to that, on the growth initiatives, I think Steve you'd talked about the investments in skewing more towards go-to-market.

Kevin Krishnaratne: Okay. Thanks for that. Maybe related to that on the growth initiatives. I think, Steve, you talked about the investments and skewing more towards go-to-market. Maybe to make it easier just in the model, if last year your R&D percentage of revenue was around 12%, sales and marketing 21%. Can you maybe help us for modeling purposes understand where those should land for 2027?

Speaker #3: Thanks

Speaker #4: Hey , Kevin . Good morning and thank you for the question . It's Eamon . Let me just start . And Steve , can can join us .

Ayman Antoun: Hey, Kevin. Good morning, and thank you for the question. It's Ayman. Let me just start, and Steve can join. It's very important for us that each category of core growth. That's the commitment that we have and the outlook that we have as well. We today feel that content, as a subset of core, will be in a faster growth trajectory than the total of core. We expect cyber and ITOM to also grow in FY 2027. Part of it is the way that you've heard Steve say it, we're redirecting more of our R&D dollars towards the category of core. It's not going to be a peanut butter approach across all four categories, but cyber will be one of the components of core that will get an injection of some of the reallocation.

Speaker #3: Maybe to make it easier, just in the model, last year your revenue was around 12%, sales and marketing 21%. Can you maybe help us for modeling purposes understand where those should land for 27?

Speaker #4: It's , very important for us that each category of core growth and that's , , the commitment that we have in the outlook that we have as well .

Speaker #4: , we today feel that content as a subset of core will be in a faster growth trajectory than the total of core . And we expect cyber and item to also grow in FY 27 .

Speaker #5: Yeah. Good question. I think the as Eamon said, and as I said in our prepared remarks, I mean, obviously the focus is on the go-to-market side and which adding sales capacity so coming down to the percentages there, obviously there's some puts and takes with R&D.

Steve Rai: Yeah. Good question. I think as Ayman said, and as I said in our prepared remarks, obviously the focus is on the go-to-market side, and which adding sales capacity. Coming down to the percentages there, obviously there's some puts and takes with R&D. There is going to be some reallocation between the categories that we've got. Overall, I'd model that consistently with fiscal 2026. Sales marketing, I'd probably tick up a point or two.

Speaker #4: And part of it is the way that you've heard Steve say it . We're redirecting more of our R&D dollars towards the category of core .

Speaker #4: It's not going to be a peanut butter approach across all four categories , but cyber will be one of the components of core that will get an injection of some of the reallocation .

Speaker #5: I mean, there is going to be some reallocation between the categories that we've got. But overall, I'd model that consistently with fiscal 26. And sales marketing, I'd probably take up a point or two.

Speaker #4: In addition to the way we're going to reallocate is being very precise around infusing more AI capabilities in each of the core categories .

Speaker #3: Oh, okay. Thanks so much. I'll pass the line. Thank you.

Speaker #4: And accelerating the cloud versions of each one of those categories , as well

Kevin Krishnaratne: Oh, okay. Thanks so much. I'll pass the line. Thank you.

Speaker #2: The next question is from Doug Taylor with National Bank. Please go ahead.

Operator: The next question is from Doug Taylor with National Bank. Please go ahead.

Speaker #3: Okay . Thanks for that . Maybe , maybe related to that on on the growth initiatives , I think , Steve , you talked about the , the investments in , you know , skewing more towards go to market , maybe , maybe to make it easier just in the model last year , your R&D percentage revenue was around 12% .

Kevin Krishnaratne: Okay. Thanks for that. Maybe related to that, on the growth initiatives, I think, Steve, you'd talked about the investments and skewing more towards go-to-market. Maybe to make it easier, just in the model, if last year your R&D percentage of revenue was around 12%, sales and marketing 21%, can you maybe help us, for modeling purposes, understand where those should land for 2027?

Speaker #6: Yeah, thank you. Good morning. A couple more questions on your guidance here, the reinvestments you're making into your go-to-market motions, both direct and indirect.

Doug Taylor: Yeah, thank you. Good morning. A couple more questions on your guidance here, the reinvestments you're making into your go-to-market motions, both direct and indirect. I think you talked to 300 new reps. Can you talk about the time horizon you'd expect to complete that investment? Moving on from that, how much you expect these to mature within this fiscal year, and how much of the benefit from that is factored into your growth guidance?

Speaker #6: I think you talked to 300 new reps. Can you talk about the time horizon you'd expect to complete that investment and then moving on from that, how much you expect these to mature within this fiscal year and how much of the benefit from that is factored into your growth guidance?

Speaker #3: Sales of marketing , 21% . Can you maybe help us for modeling purposes , understand where those should land ? For 27 ?

Speaker #1: Yeah . Good question . , I think the as Eamonn said , and as I said in our prepared remarks , I mean , obviously the focus is on is on the go to market side and which , you know , adding sales capacity .

Steve Rai: Yeah. Good question. I think, as Ayman said, and as I said in our prepared remarks, obviously the focus is on the go-to-market side, and which adding sales capacity. Coming down to the percentages there, obviously there is some puts and takes with R&D. There is going to be some reallocation between the categories that we've got. But overall, I would model that consistently with fiscal 2026. Sales marketing, I would probably tick up a point or two.

Speaker #4: Hi Doug. Another very important question. So our expectation and the hiring engine is started earlier than the beginning of this quarter is by the end of fiscal quarter FY 27, I expect our sales capacity to be at the level that we want it to be for the full year.

Ayman Antoun: Hi, Doug. Another very important question. Our expectation in the hiring engine started earlier than the beginning of this quarter. By the end of fiscal Q4 2027, I expect our sales capacity to be at the level that we want it to be for the full year. Of course, that will ramp up, and we have very precise programs around sales enablement to accelerate the seller's ability. We know exactly which clients we would assign them to. A lot of the groundwork is done so that as soon as everybody is in the seat, they can hit the ground running. We have factored that timeline and their capacity into the guidance that we give for core. Of course, part of that is they become part of the baseline as we get into beyond 2027.

Speaker #1: , so coming down to the percentages there . Obviously there's some puts and takes with R&D . I mean , we , there is going to be some , some reallocation between , the categories that we've , that we've got , but overall , , I'd model .

Speaker #4: And of course, that will ramp up and we have very precise programs around sales enablement to accelerate the sellers' ability we know exactly which clients we would assign them to.

Speaker #1: That consistently with fiscal 26 . , and , and sales marketing , I'd probably pick up a point or two .

Speaker #4: So a lot of the groundwork is done, so that as soon as everybody is in the seat, they can hit the ground running. We have factored that timeline and their capacity into the guidance that we give for core.

Speaker #3: Okay . Thanks so much . I'll pass the line . Thank you

Kevin Krishnaratne: Oh, okay. Thanks so much. I'll pass the line. Thank you.

Speaker #2: Next question is from Doug Taylor with National Bank . Please go ahead .

Operator: The next question is from Doug Taylor with National Bank. Please go ahead.

Speaker #5: Thank you . Good morning . A couple more questions on your guidance here . The Reinvestments you're making into your go to market motions .

Doug Taylor: Yeah, thank you. Good morning. A couple more questions on your guidance here, the reinvestments you are making into your go-to-market motions, both direct and indirect. I think you talked to 300 new reps. Can you talk about the time horizon you would expect to complete that investment? Moving on from that, how much you expect these to mature within this fiscal year, and how much of the benefit from that is factored into your growth guidance?

Speaker #4: And of course, part of that is they become part of the baseline as we get into beyond FY 27.

Speaker #5: Both direct and indirect . I think you talked to 300 new reps . Can you talk about the time horizon you'd expect to complete that investment And then moving on from that , how much you expect these to mature within this fiscal year and how much of the benefit from that is factored into your your growth guidance ?

Speaker #6: Okay. The next question for me you've got some materials in your slide deck about the migration from legacy to cloud. To what degree is that is your growth guidance here predicated on migration of some of your existing business to cloud versus net new business?

Doug Taylor: Okay. The next question from me, you've got some materials in your slide deck about the migration from legacy to cloud. To what degree is your growth guidance here predicated on migration of some of your existing business to cloud versus net new business? Perhaps you can wrap some numbers or thoughts around that qualitatively or quantitatively. Thank you.

Speaker #4: Hi , Doug , another very important question . So our expectation and the hiring engine is started earlier than the beginning of this quarter is by the end of fiscal quarter , FY 27 , I expect our sales capacity to be at the level that we want it to be for the full year .

Ayman Antoun: Hi, Doug. Another very important question. Our expectation in the hiring engine is started earlier than the beginning of this quarter. By the end of fiscal quarter FY27, I expect our sales capacity to be at the level that we want it to be for the full year. Of course, that will ramp up, and we have very precise programs around sales enablement to accelerate the seller's ability. We know exactly which clients we would assign them to. A lot of the groundwork is done so that as soon as everybody is in the seat, they can hit the ground running. We have factored that timeline and their capacity into the guidance that we give for core. Of course, part of that is they become part of the baseline as we get into beyond FY27.

Speaker #6: Perhaps you can wrap some numbers or thoughts around that qualitatively or quantitatively. Thank you.

Speaker #5: Maybe I'll start there. We so we're in early stages of that. Now, obviously, there's some very positive signs and markers that we indicated. Obviously, you start to see this in our build in the content cloud CRPO numbers.

Steve Rai: Maybe I'll start there. We're in early stages of that. Obviously, there's some very positive signs and markers that we indicated. Obviously, you start to see this in our build in the Content Cloud cRPO numbers, up 10% current, 15% long-term in terms of the cloud piece of it, and the traction in the deals greater than $1 million and all that. We'll try to get more specific on that, but it's a little early in terms of the modeling. Probably look forward to some more specificity early next year with respect to the broader topic of cloud migration and how that's tracking in the longer-term modeling around it.

Speaker #4: And of course , that will ramp up . And we have very precise programs around sales enablement to accelerate the seller's ability We know exactly which clients we would assign them to .

Speaker #4: So a lot of the groundwork is done so that as soon as everybody is in the seat , they can hit the ground running .

Speaker #5: I mean, up 10% current, 15% long-term in terms of the cloud piece of it. And the traction in the deals greater than a million and all that.

Speaker #4: We have factored that timeline , and their capacity , , into the guidance that we give for core . And of course , , part of that is they become part of the baseline as we get into beyond FY 27 .

Speaker #5: So we've got we'll try to get more specific on that, but it's a little early in terms of the modeling. But probably look forward to some more specificity early next year with respect to kind of the broader topic of cloud migration and how that's tracking and the longer-term modeling around it.

Speaker #5: Okay Next question for me You've got some materials in your in your slide deck about the migration . You know , from , , you know , legacy to , to , to , to cloud , , you know , to what degree is that , , is your growth guidance here predicated on migration of , of some of your existing business to cloud versus , you know , net new business , perhaps you can , you know , wrap some , some numbers or thoughts around that qualitatively or quantitatively Thank you

Doug Taylor: Okay. The next question for me, you've got some materials in your slide deck about the migration from legacy to cloud. To what degree is your growth guidance here predicated on migration of some of your existing business to cloud versus net new business? Perhaps you can wrap some numbers or thoughts around that qualitatively or quantitatively. Thank you.

Speaker #6: Is it fair to say that you're your growth for cloud is a balance of then of that migration and net customer growth? I mean, I'm just trying to unpack that a bit more.

Doug Taylor: Is it fair to say that your growth for cloud is a balance of that migration and net customer growth? I'm just trying to unpack that a bit more.

Speaker #4: Yeah, Doug, it's Eamon. I think what is encouraging for us to first of all, if you just let me back up for one second.

Ayman Antoun: Yeah, Doug, it's Ayman. I think what is encouraging for us. First of all, if you just let me back up for 1 second. One of the continuous feedback I get from clients, and I had the privilege of meeting with 63 individual clients since I got in the seat, is they like the fact that we allow them choice. Choice of acquiring on-prem or cloud, and choice of what cloud, whether it's public or private. To give you just statistics of what we have seen happen in FY26, which I believe will continue in FY27, is 92% of our cloud bookings were new clients going to the cloud as opposed to base converting to the cloud.

Ayman Antoun: Yeah, Doug, it's Ayman. I think what is encouraging for us. First of all, if you just let me back up for one second. One of the continuous feedback I get from clients, and I had the privilege of meeting with 63 individual clients since I got in the seat, is they like the fact that we allow them choice. Choice of acquiring on-prem or cloud, and choice of what cloud, whether it's public or private. To give you just statistics of what we have seen happen in FY26, which I believe will continue in FY27, is 92% of our cloud bookings were new clients going to the cloud as opposed to base converting to the cloud. That's not to say the existing base doesn't have a desire.

Speaker #1: , maybe I'll start there We so we're in early stages of that now . Obviously , there's some very positive , , signs and markers that , that we indicated , , you know , obviously you start to see this in our , you know , build in the , in the content cloud .

Steve Rai: Maybe I'll start there. We're in early stages of that. Obviously, there's some very positive signs and markers that we indicated. Obviously, you start to see this in our build in the Content Cloud CRPO numbers. Up 10% current, 15% long-term in terms of the cloud piece of it. The traction in the deals greater than $1 million and all that. We'll try to get more specific on that, but it's a little early in terms of the modeling. Probably look forward to some more specificity early next year with respect to kind of the broader topic of cloud migration and how that's tracking in the longer-term modeling around it.

Speaker #4: One of the continuous feedback I get from clients, and I had the privilege of meeting with 63 individual clients since I got in the seat, is they like the fact that we allow them choice.

Speaker #4: Choice of acquiring on-prem or cloud and choice of what cloud, whether it's public or private. But to give you just statistics of what we have seen happen in FY 26, which I believe will continue in FY 27, is 92% of our cloud bookings were new clients going to the cloud as opposed to base converting to the cloud.

Speaker #1: , Crpo numbers . I mean , up , up 10% current , , 15% , , long term in terms of the cloud , , piece of it .

Speaker #1: , you know , and the traction in the , in the deals , , you know , greater than a million and all that .

Speaker #1: So , , you know , we've got , , we'll , we'll try to get more specific , , on that , but it's a little early in terms of the modeling , , but , you know , probably look forward to , , you know , some more specificity early next year , , with respect to kind of the broader topic of , of cloud migration and , and how that's tracking in the longer term , , modeling around it

Speaker #4: That's not to say the existing base doesn't have a desire, but we kind of like the mix. That 92% of our cloud bookings are coming from new engagements, if you will.

Ayman Antoun: That's not to say the existing base doesn't have a desire, we kind of like the mix that 92% of our cloud bookings are coming from new engagements, if you will.

Ayman Antoun: We kind of like the mix that 92% of our cloud bookings are coming from new engagements, if you will.

Speaker #2: The next question is from Sagar Kari with BMO Capital Markets. Please go ahead.

Operator: The next question is from Sagar Kari with BMO Capital Markets. Please go ahead.

Speaker #3: Hi there. Good morning. This is Sagar on behalf of Panos. So I just had a question on divestitures. So with respect to divestitures, something that you continue to actively explore with interested parties, has that discussion continued or have those discussions been paused for the time being given current market conditions?

Sagar Kari: Hi there. Good morning. This is Sagar on behalf of Thanos. I just had a question on divestitures. With respect to divestitures, something that you continue to actively explore with interested parties, has that discussion continued, or have those discussions been paused for the time being given current market conditions? Thank you.

Speaker #5: , is it fair to say that you're , you're gross for cloud is a balance of then of that migration and net customer growth .

Doug Taylor: Is it fair to say that your growth for cloud is a balance of then of that migration and net customer growth? I'm just trying to unpack that a bit more.

Speaker #5: I mean , I'm just trying to unpack that a bit more .

Speaker #4: Yeah . Doug , it's I think , , what is encouraging for us , first of all , if you just let me back up for one second , one of the continuous feedback I get from clients , and I had the privilege of meeting with 63 individual clients since I got in the seat , is they like the fact that we allow them choice , choice of acquiring on prem or cloud and choice of what cloud , whether it's public or private .

Ayman Antoun: Yeah, Doug, it's Ayman. I think what is encouraging for us. First of all, if you just let me back up for one second. One of the continuous feedback I get from clients, and I had the privilege of meeting with 63 individual clients since I got in the seat, is they like the fact that we allow them choice. Choice of acquiring on-prem or cloud, and choice of what cloud, whether it is public or private. To give you just statistics of what we have seen happen in FY2026, which I believe will continue in FY2027, is 92% of our cloud bookings were new clients going to the cloud as opposed to base converting to the cloud.

Speaker #3: Thank you.

Speaker #5: No, thanks for the question. That absolutely continues. We've got an active process and engagement related to that. Obviously, given market dynamics, as we've said before, we're not going to we're not going to fire sale anything.

Steve Rai: No, thanks for the question. That absolutely continues. We've got an active process and engagement related to that. Obviously, given market dynamics, as we've said before, we're not going to fire sale anything. We want to get a fair and reasonable price, as is the right thing to do. As custodians of these assets and for shareholder returns. In the meantime, just a reminder, these are good businesses. They're profitable businesses, and generating profit and good cash along the way. We're being methodical about it.

Speaker #4: But to to give you just statistics of what we have seen happen in FY 26 , which will continue in FY 27 , is 92% of our cloud bookings were new clients going to the cloud as opposed to base converting to the cloud ?

Speaker #5: We want to get a fair and reasonable price as the right thing to do. As custodians of these assets and for shareholder returns. So but in the meantime, just a reminder, I mean, these are good businesses.

Speaker #4: , that's not to say the existing base doesn't have a desire , but , , we kind of like the mix that 92% of our cloud bookings are coming from , , new engagements , if you will

Ayman Antoun: That's not to say the existing base doesn't have a desire, we kind of like the mix that 92% of our cloud bookings are coming from new engagements, if you will.

Speaker #5: They're profitable businesses. And generating profit and good cash along the way. So we're being methodical about it.

Speaker #3: Perfect. Thanks. I'll pass the line.

Sagar Kari: Perfect. Thanks. I'll pass the line.

Speaker #2: The next question is from Sagar Curry with BMO Capital Markets . Please go ahead

Operator: The next question is from Sagar Kari with BMO Capital Markets. Please go ahead.

Speaker #2: The next question is from Stephanie Price with CIBC. Please go ahead.

Operator: The next question is from Stephanie Price with CIBC. Please go ahead.

Speaker #7: Hi. Good morning. Wondering if we could circle back on kind of the investment. So 100 to 200 million is a pretty large investment for open text.

Stephanie Price: Hi, good morning. Wondering if we could circle back on the investment. $100 to 200 million is a pretty large investment for OpenText. Just curious if you can give any further details about how to think about it between R&D and sales capacity and partner. In answering one of the prior questions, it sounds like R&D is still expected to be at 12% of revenue. Just any additional breakdown you could give there, any color?

Speaker #6: Hi there . Good morning . This is Sagar . On behalf of Thanos . , so I just had a question on divestitures .

Speaker #6: So with respect to divestitures , something that you continue to actively explore with interested parties , , has that discussion continued or have those discussions been paused for the time being ?

Speaker #7: Just curious if you can give any further details about how to think about it between R&D and sales capacity and partner in answer to one of the prior questions.

Speaker #6: Given current market conditions ? Thank you

Speaker #7: It sounds like R&D is still expected to be at 12% of revenue. So just any additional breakdown, you can kind of give there any color.

Speaker #1: No , thanks for the question . , that absolutely continues . , we've got an active process and , and engagement related , , to that .

Steve Rai: No, thanks for the question. That absolutely continues. We've got an active process and engagement related to that. Obviously, given market dynamics, as we've said before, we're not going to fire sale anything. We want to get a fair and reasonable price, as the right thing to do as custodians of these assets and for shareholder returns. In the meantime, just a reminder, these are good businesses. They're profitable businesses, and generating profit and good cash along the way. We're being methodical about it.

Speaker #4: It's definitely good morning and thank you for the question. The investment in capacity, I would put it in two categories. Which is a significant part, at least in the FY 27 modeling, a significant part of the overall investment.

Ayman Antoun: Yes, Stephanie, good morning, and thank you for the question. The investment in capacity, I would put it in two categories, which is a significant part, at least in the FY 2027 modeling, a significant part of the overall investment. It's adding face-to-face sales capacity in front of the clients, over 300 more sellers that carry a quota. In addition to that, reactivating our ecosystem partner channel, which is a significantly important route to market for us to reach segments that we have not reached on our own. Part of that reactivating is investing in enabling those partners, supporting them with sales plays, and having a financial model that's attractive for them to be our partners.

Speaker #1: , obviously , you know , given market dynamics , as we've said before , , you know , we're , we're not going to , we're not going to fire sale anything .

Speaker #4: It's adding face-to-face sales capacity in front of the clients over 300 more sellers that carry a quota. In addition to that, reactivating our ecosystem partner channel, which is a significantly important route to market for us to reach segments that we have not reached on our own.

Speaker #1: We want to get a , you know , a fair and reasonable price as it's the right thing to do . , you know , as custodians of these assets and for shareholder returns .

Speaker #1: So , , you know , but in the meantime , , just a reminder , I mean , these are good businesses . They're profitable businesses .

Speaker #1: And , , and generating , , you know , profit and good cash along the way . , so we're being methodical about it .

Speaker #4: And part of that reactivating is investing in enabling those partners supporting them with sales plays and having a financial model that's attractive for them to be our partners.

Speaker #6: Perfect . Thanks . I'll pass the line

Sagar Kari: Perfect. Thanks. I'll pass the line.

Speaker #4: And when I say partners, I think of the four categories, the hyperscalers, the global and regional system integrators as the second category, the vertical ISVs like the SAP, and sorry, the regional system integrators, not just the global ones.

Ayman Antoun: When I say partners, I think of the four categories, the hyperscalers, the global and regional system integrators as the second category, the vertical ISVs like the SAP, and sorry, the regional system integrators, not just the global ones. Everyone has a different requirement, bring us different value. Reactivating that is an important part of our growth strategy going forward. We felt it prudent to spend that investment in FY 2027 so that we can ramp it up and reap the benefits down the road as well.

Speaker #2: The next question is from Stephanie Price, CIBC. Please go ahead.

Operator: The next question is from Stephanie Price with CIBC. Please go ahead.

Speaker #7: Hi . Good morning . I'm wondering if we could circle back on kind of the the investment . So 100 to 200 million , is a pretty large investment for OPEN TEXT CORP .

Stephanie Price: Hi. Good morning. Wondering if we could circle back on kind of the investment. $100 to 200 million is a pretty large investment for OpenText. Just curious if you can give any further details about how to think about it between R&D and sales capacity and partner. In answer to one of the prior questions, it says like R&D is still expected to be at 12% of revenue. Just any additional breakdown you can kind of give there, any color?

Speaker #4: So everyone has a different requirement. Bring us different value and reactivating that is an important part of our growth strategy going forward. And we felt it's prudent to spend that investment in FY 27 so that we can ramp it up and reap the benefits down the road as well.

Speaker #7: Just curious if you can give any further details about how to think about it between R&D and sales capacity and partner , in answer to one of the prior questions , it sounds like R&D is still expected to be at 12% of revenue .

Speaker #7: So just any additional breakdown , you can kind of give there any color

Speaker #4: You . Stephanie . Good morning , and thank you for the question . , the investment in capacity , I would put it in two categories , which is a significant part , at least in the FY 27 modeling a significant part of the overall investment .

Ayman Antoun: Hey, Stephanie, good morning, and thank you for the question. The investment in capacity, I would put it in 2 categories, which is a significant part, at least in the FY2027 modeling, a significant part of the overall investment. It's adding face-to-face sales capacity in front of the clients, over 300 more sellers that carry a quota. In addition to that, reactivating our ecosystem partner channel, which is a significantly important route to market for us to reach segments that we have not reached on our own. Part of that reactivating is investing in enabling those partners, supporting them with sales plays, and having a financial model that's attractive for them to be our partners.

Speaker #7: Okay. Okay. That's a great color. And then maybe on the free cash flow guidance for 27 and the free cash flow conversion that it kind of implies, how should we think about the puts and takes here?

Stephanie Price: Okay. That's great color. Maybe on the free cash flow guidance for 2027 and the free cash flow conversion that it implies. How should we think about the puts and takes here? I think there was a comment about divestitures impacting free cash flow in the year. How do you think about free cash flow here?

Speaker #7: I think there was a comment about divestitures kind of impacting free cash flow in the year. How do you kind of think about free cash flow here?

Speaker #4: It's adding , , face to face sales capacity in front of the clients . Over 300 more sellers that carry a quota in addition to that , reactivating our ecosystem partner channel , , which is a significantly important route to market for us to reach segments that we have not reached on our own .

Speaker #5: Yeah. Obviously, the growth investments are factored into the range that we've provided. I mean, it's fairly significant as you noted. Now, obviously, the timing of it in terms of exactly when that lands there could be a little bit of variability there.

Steve Rai: Yeah, obviously the growth investments are factored into the range that we've provided. It's fairly significant, as you noted. Now, obviously, the timing of it in terms of exactly when that lands, there could be a little bit of variability there. That's why we've got that range. It's largely that. The divestitures that I was referring to was the ones that we completed last year. Obviously they'll have a full year effect in terms of on the cash flow. They were profitable businesses, if they're no longer in the mix, that's also part of it.

Speaker #4: And part of that reactivating is investing in enabling those partners , supporting them with sales plays and having a financial model that's attractive for them to be our partners .

Speaker #5: So that's why we've got that range. But it's largely that. The divestitures that I was referring to was the ones that we completed last year.

Speaker #4: And when I say partners , I think of the four categories . The hyperscalers , the regional system integrators as the second category , the vertical ISVs like the SAP and , , sorry , the regional system integrators , not just the global ones .

Ayman Antoun: When I say partners, I think of the 4 categories, the hyperscalers, the global and regional system integrators as the 2nd category, the vertical ISVs like the SAP, sorry, the regional system integrators, not just the global ones. Everyone has a different requirement, bring us different value, and reactivating that is an important part of our growth strategy going forward. We felt it prudent To spend that investments in FY2027 so that we can ramp it up and reap the benefits down the road as well.

Speaker #5: So obviously, they'll have a full year effect in terms of on the cash flow, they were profitable businesses and so if they're no longer in the mix, that's also part of it.

Speaker #4: So everyone has a different requirement . Bring us different value and reactivating that is an important part of our growth strategy going forward .

Speaker #7: Okay. Thank you very much.

Stephanie Price: Okay. Thank you very much.

Speaker #2: The next question is from Paul Treber with RBC Capital Markets. Please go ahead.

Operator: The next question is from Paul Treiber with RBC Capital Markets. Please go ahead.

Speaker #4: And we felt it's prudent to spend that investment in FY 27 so that we can ramp it up and reap the benefits down the road as well .

Speaker #3: Oh, thanks for taking the question. Good morning. I'm in you've run very large sales organizations in the past. Open text has gone through sales capacity investments in prior years.

Paul Treiber: Oh, thanks for taking the question. Good morning. Ayman, you've run very large sales organizations in the past. OpenText has gone through sales capacity investments in prior years. From your point of view, why perhaps did those investments not have as much of a payoff as perhaps they should have? How are you taking a different approach this time?

Speaker #7: Okay , okay . That's great color . And then maybe on the free cash flow guidance for , for 27 in the free cash flow conversion , that , that kind of implies , how should we think about the puts and takes here ?

Stephanie Price: Okay. That's great color. Then maybe on the free cash flow guidance for 2027 and the free cash flow conversion that it kind of implies. How should we think about the puts and takes here? I think there was a comment about divestitures kind of impacting free cash flow in the year. How do you kind of think about free cash flow here?

Speaker #3: From your point of view, why perhaps did those investments not have much of as much of a payoff as perhaps they should have? And how are you taking a different approach this time?

Speaker #7: I think there was a comment about , , about divestitures kind of impacting free cash flow in the year . How do you kind of think about free cash flow here ?

Speaker #4: Hi Paul. Thank you for the question. It's a really important one because sales capacity not spread properly and surgically doesn't give you the same return.

Ayman Antoun: Hi, Paul. Thank you for the question. It's a really important one because sales capacity not spread properly and surgically doesn't give you the same return. If I were to mention three things that we're working to do materially differently than we have done in the past is one, where we are allocating that capacity. We have segmented our market, the client segments that we are focused on into three segments. We used to have a lot more than that. We are more focused on which clients we want to target, and those are the clients we're putting that investment in terms of sales capacity, because they're the ones that have given us the feedback that if you are spending time with me, more time with me, and bringing me an integrated OpenText.

Speaker #1: Yeah , obviously the , the , the growth investments are factored into , , you know , the range that we've , that we've provided .

Steve Rai: Yeah. Obviously, the growth investments are factored into the range that we've provided. It's fairly significant, as you noted. Now, obviously, the timing of it in terms of exactly when that lands, there could be a little bit of variability there. That's why we've got that range. It's largely that. The divestitures that I was referring to was the ones that we completed last year. Obviously, they'll have a full year effect in terms of on the cash flow. They were profitable businesses and so if they're no longer in the mix, that's also part of it.

Speaker #1: I mean , it's fairly significant . , as you noted , , now obviously the timing of it in terms of exactly when that lands , you know , there could be a little bit of variability there .

Speaker #4: So if I were to mention three things that we're working to do materially differently than we have done in the past is one, where we are allocating that capacity.

Speaker #1: So that's , , , you know , why we've got that range , but it's , it's largely that and the divestitures that I was referring to was the ones that we completed , , last year .

Speaker #4: So we have segmented our market, our client segments that we are focused on into three segments. We used to have a lot more than that.

Speaker #1: So obviously they'll have a , you know , a full year , , effect in terms of , , , you know , on the cash flow , they were profitable businesses .

Ayman Antoun: We used to have a lot more than that. We are more focused on which clients we want to target, and those are the clients we're putting that investment in terms of sales capacity, because they're the ones that have given us the feedback that if you are spending time with me, more time with me, and bringing me an integrated OpenText, not the brand-by-brand version, but the integrated OpenText, where you're stitching all the products that I acquire from you into a holistic story, you will reap the benefits. Surgically putting the coverage, not a peanut butter approach, but in certain places. Second, we have picked the markets where we believe not only there's an opportunity that we have the right to win, a value proposition that resonates.

Speaker #4: So we are more focused on which clients we want to target and those are the clients we're putting that investment in in terms of sales capacity because they're the ones that have given us the feedback that if you are spending time with me more time with me and bringing me an integrated open text, not the brand by brand version, but the integrated open text where you're stitching all the products that I acquire from you into a holistic story, you will reap the benefits.

Speaker #1: And so if they're no longer in the mix , that's , that's also part of it .

Speaker #7: Okay . Thank you very much

Stephanie Price: Okay. Thank you very much.

Speaker #2: The next question is from Paul Schreiber with RBC Capital Markets . Please go ahead .

Ayman Antoun: Not the brand-by-brand version, but the integrated OpenText, where you're stitching all the products that I acquire from you into a holistic story, you will reap the benefits. Surgically putting the coverage, not a peanut butter approach, but in certain places. Second, we have picked the markets where we believe not only there's an opportunity that we have the right to win, a value proposition that resonates. We've configured ourselves globally across 16 markets with a market leader for each one of those 16 markets. He or she is accountable for the resource model, for the performance of their unit, and have all the decision rights in the market. That's another key change. The decision rights to seed what we do for our clients is in the hands of the market leaders.

Operator: The next question is from Paul Treiber with RBC Capital Markets. Please go ahead.

Speaker #8: Thanks for taking the question . Good morning . I mean , you've run very large . Sales organizations in the past . You know , OpenText has gone through sales capacity .

Speaker #4: So surgically putting the coverage, not a peanut butter approach, but in certain places, second, we have picked the markets where we believe not only there's an opportunity, but we have the right twin value proposition that resonates.

Speaker #8: , investments in prior years , you know , from your point of view , you know , why perhaps did those , you know , investments not have much of as much of a payoff as perhaps they should have ?

Speaker #4: So we've configured ourselves across globally, across 16 markets with a market leader for each one of those 16 markets he or she is accountable for the resource model, for the performance of their unit, and have all the decision rights in the market.

Ayman Antoun: We've configured ourselves globally across 16 markets with a market leader for each one of those 16 markets. He or she is accountable for the resource model, for the performance of their unit, and have all the decision rights in the market. That's another key change. The decision rights to seed what we do for our clients is in the hands of the market leaders. You don't need to phone home. You don't come to headquarters, so to speak. The final one I would say that is different than in the past is part of the investment that's going into the ecosystem. That is a place that I have really good experience with. When you do it right, it is a significant force multiplier. It takes time and the investment eventually pays off. I did not feel we had enough investment there.

Speaker #8: And how are you taking a different approach this time ?

Speaker #4: Hey . Hi , Paul . Thank you for the question . It's a really important one because sales capacity , , not spread properly .

Ayman Antoun: Hi, Paul. Thank you for the question. It's a really important one because sales capacity not spread properly and surgically doesn't give you the same returns. If I were to mention three things that we're working to do materially differently than we have done in the past is one, where we are allocating that capacity. We have segmented our market, the client segments that we are focused on into three segments. We used to have a lot more than that, so we are more focused on which clients we want to target.

Speaker #4: And surgically doesn't give you the same return . So if I were to mention three things that , , we're working to do materially differently than we have done in the past is one where we are allocating that capacity .

Speaker #4: That's another key change that decision rights to see what we do for our clients is in the hands of the market leaders. You don't need to phone home.

Ayman Antoun: You don't need to phone home. You don't come to headquarters, so to speak. The final one I would say that is different than in the past is part of the investment that's going into the ecosystem. That is a place that I have really good experience with. When you do it right, it is a significant force multiplier. It takes time and the investment eventually pays off. I did not feel we had enough investment there. The partners told me that in the last three months where I've spoken to our top 22 partners. We have listened and acted in terms of investments and resources to support them, sales enablement, and financial incentives as well.

Speaker #4: You don't come to headquarters, so to speak. And then in the final one, I would say that is different than in the past is part of the investment that's going into the ecosystem.

Speaker #4: So we have segmented our market , our client segments that we are are focused on into three segments . We used to have a lot more than that .

Speaker #4: That is a place that I have really good experience with when you do it right, it is a significant force multiplier. It takes time and the investment eventually pays off, but I did not feel we had enough investment there.

Speaker #4: So we are more focused on rich clients . We want to target . And those are the clients who are putting that investment in , in terms of sales capacity , because they're the ones that have given us the feedback that if you are spending time with me , more time with me , and bringing me an integrated OpenText , not the brand by brand version , but the integrated OpenText where you're stitching all the products that I acquire from you into holistic story , you will reap the benefits .

Ayman Antoun: Those are the clients we're putting that investment in terms of sales capacity, because they're the ones that have given us the feedback that if you are spending time with me, more time with me, and bringing me an integrated OpenText, not the brand-by-brand version, but the integrated OpenText, where you're stitching all the products that I acquire from you into a holistic story, you will reap the benefits. Surgically putting the coverage, not a peanut butter approach, but in certain places. Second, we have picked the markets where we believe not only there's an opportunity that we have the right thing, a value proposition that resonates. We've configured ourselves globally across 16 markets with a market leader for each one of those 16 markets.

Speaker #4: The partners told me that in the last three months where I've spoken to our top 22 partners, so we have listened and acted in terms of investments and resources to support them, sales enablement, and financial incentives as well.

Ayman Antoun: The partners told me that in the last 3 months where I've spoken to our top 22 partners. We have listened and acted in terms of investments and resources to support them, sales enablement, and financial incentives as well.

Speaker #3: Thanks. Thanks for that. It's helpful. Second question, just on renewal rates, specifically in a cloud net renewal rate it was down on a year-over-year basis, but you mentioned that it was in line with historical trends.

Speaker #4: So surgically putting the coverage , not a peanut butter approach , but in certain places . Second , we have picked the markets where we believe not only there's an opportunity that we have the right twin , a value proposition that resonates .

Paul Treiber: Thanks for that. It's helpful. Second question, just on renewal rates, specifically in a cloud net renewal rate, it was down on a year-over-year basis. You mentioned that it was in line with historical trends. Can you just sort of elaborate a bit more on that dynamic? Ideally, where would you prefer net renewal rates to trend to over time?

Speaker #4: So we've . Articulated , configured ourselves across globally , across 16 markets with a market leader for each one of those 16 markets , he or she is accountable for the resource model , for the performance of their unit .

Speaker #3: Can you just sort of elaborate a bit more on that dynamic? And ideally, where would you prefer net renewal rates to trend to over time?

Ayman Antoun: He or she is accountable for the resource model, for the performance of their unit, and have all the decision rights in the market. That's another key change. The decision rights to speed what we do for our clients is in the hands of the market leaders. You don't need to phone home, you don't come to headquarters, so to speak. The final one I would say that is different than in the past is part of the investment that's going into the ecosystem. That is a place that I have really good experience with. When you do it right, it is a significant force multiplier. It takes time and the investment eventually pays off. I did not feel we had enough investment there. The partners told me that

Speaker #5: Yeah. I'll start there. Maybe Eamon can add on. Obviously, the historical rates are how they are, but being in the in the low to mid-90s, there is pretty good.

Speaker #4: And have all the decision rights in the market . That's another key change . The decision rights to speed what we do for our clients is in the hands of the market leaders .

Steve Rai: Yeah, I'll start there. Maybe Ayman can add on. Obviously, the historical rates are what they are, but being in the low to mid-90s there is pretty good. I think maybe with what's happening, we likely, given the trends that we're seeing, that should, I think, improve to some degree over time because the stickiness and the level of investments that companies are making and the AI deployments really ticking up, deals getting larger and longer quite significantly, I think should positively impact that over time.

Speaker #4: You don't need to phone home . You don't come to headquarters , so to speak , and then the final one , I would say that is different than in the past .

Speaker #5: I think maybe we'll with what's happening, we likely given the trends that we're seeing, that should, I think, improve to some degree over time because the stickiness and the level of investments that companies are making and the AI deployments really ticking up deals getting larger and longer quite significantly, I think, should positively impact that over time.

Speaker #4: Is part of the investment that's going into the ecosystem . That is a place that I have a really good experience with . When you do it right , it is a significant force multiplier .

Speaker #3: Okay. Thanks for taking the questions.

Paul Treiber: Okay. Thanks for taking the questions.

Speaker #2: The next question is from David Kwon with TD Collins. Please go ahead.

Operator: The next question is from David Kwan with TD Cowen. Please go ahead.

Speaker #3: Thanks. Thanks and good morning. Want to get back to the question on the asset divestitures. So can you comment on, I guess, what the environment is looking like right now, particularly as it relates to deal financing?

David Kwan: Thanks. Thanks. Good morning. Want to get back to the question on the asset divestitures. Could you comment on, I guess, what the environment is looking like right now, particularly as it relates to deal financing? Because I know, I think it was on the last call, you talked about just challenges in terms of potential buyers, particularly financial ones, struggling to access credit. I'm wondering to what extent that might have changed since the last call.

Speaker #3: Because I know I think it was on the last call you talked about just challenges in terms of potential buyers, particularly financial ones, struggling to access credit.

Speaker #3: I'm wondering to what extent that might have changed since last call.

Speaker #5: Yeah. My take on it is that while things are starting to potentially loosen up a little bit, it's by and large similar, right? You're absolutely right.

Steve Rai: Yeah. My take on it is that while things are starting to potentially loosen up a little bit, it's by and large similar. Right? You're absolutely right. The debt markets remain pretty tight in the space. On the other hand, there is a lot of capital on the sidelines waiting to be deployed. It's that kind of dynamic. There's obviously a lot of market participants out there looking to take advantage of current valuations and markets. I think it's kind of more of the same, but it should improve given a bit more time.

Speaker #5: The debt markets remain pretty tight in the space. But on the other hand, there is a lot of capital on the sidelines waiting to be deployed.

Speaker #5: So it's that kind of dynamic. And there's obviously a lot of market participants out there looking for to take advantage of current valuations and markets.

Speaker #5: So I think it's kind of more of the same, but it should improve given a bit more time.

Speaker #3: I appreciate the color. And then on the capital allocation strategy, it sounds like it really more focused on investing and debt reduction. Is that right?

David Kwan: Yeah, I appreciate the color. Then on the capital allocation strategy, it sounds like it really more focused on investing for stronger organic growth and debt reduction. Is that right? On a related note, despite kind of where the shares are trading right now, should we expect a slower pace of buybacks this year versus last year, given maybe a change in priorities?

Speaker #3: And on a related note, despite kind of where the shares are trading right now, should we expect a slower pace of buybacks this year versus last year given maybe a change in priorities?

Speaker #4: Hi, David. It's Eamon. You called it right. On our page 21, the capital allocation categories were listed you should read that as listed based on priorities for us.

Ayman Antoun: Yeah. Hi, David, it's Ayman. You called it right. On our page 21, the capital allocation categories were listed. You should read that as listed based on priorities for us, debt reduction and organic growth investments. As you heard from Steve in his remarks, we did renew the NCIB process. It is part of our capital allocation, but we're prioritizing the first two.

Speaker #4: Debt reduction and organic growth investments. But as you heard from Steven, his remarks, we did renew the NCIB process, and it is part of our capital allocation, but we're prioritizing the first two.

Speaker #3: Appreciate it, Eamon. This is the last question for me, and I apologize if this maybe was addressed in the call as I was late jumping on, but I'm curious to get your commentary on kind of token consumption and how that's impacting your business from a cost perspective.

David Kwan: Appreciate it, Ayman. Just the last question for me, I apologize if this maybe was discussed on the call as I was late jumping on, I'm curious to get your commentary on token consumption and how that's impacting your business from a cost perspective. Is it having a material impact and I assume that's reflected in the margins?

Speaker #3: Is it having a material impact, and is that I assume that's reflected in the margins?

Speaker #4: Another very important question. It's something that I think the whole industry is dealing with and learning about as we speak. I would say this way, when we started to make that available to our development team, at the beginning, we started to see a ramp-up that was going to get dangerous if we don't put the right governance around it.

Ayman Antoun: Another very important question. It's something that I think the whole industry is dealing with and learning about as we speak. I would say it this way. When we started to make that available to our development team, at the beginning, we started to see a ramp-up that was going to get dangerous if we don't put the right governance around it. Very quickly, the team did a really nice job monitoring that early stage of token consumption, and who's using it and for what reasons, and are we getting the ROI. Very quickly, our chief development officer and our chief information officer partnered together and put a very tight, but with speed and simplicity, governance model around it. We feel pretty good about how we're managing that going forward.

Speaker #4: So very quickly, the team did a really nice job monitoring that early stage of token consumption and who's using it and for what reasons.

Speaker #4: And are we getting the ROI? And very quickly, our chief development officer and our chief information officer partnered together and put a very tight but with speed and simplicity governance model around it.

Speaker #4: And we feel pretty good about how we're managing that going forward.

Speaker #3: No, I appreciate it. Thank you very much.

David Kwan: No, appreciate it. Thank you very much.

Speaker #2: Once again, if you have a question, please press star then one. The next question is from Steve Enders with Citi. Please go ahead.

Operator: Once again, if you have a question, please press star one. The next question is from Steven Enders with Citi. Please go ahead.

Speaker #3: Hi. Thanks for taking the questions. This is George for Steve. I wanted to ask about this ongoing enterprise assessment. Sounds like pretty sweeping. Clearly, there were some signals that were loud enough to enable you to take some fairly decisive actions before completing that.

[Analyst] (Citi): Hi. Thanks for taking the questions. This is George for Steve. I wanted to ask about this ongoing enterprise assessment. Sounds pretty sweeping. Clearly, there were some signals that were loud enough to enable you to take some fairly decisive actions before completing that. Just when you think about the range of outcomes, what are some of the areas where you feel like there's the most sort of uncertainty in where you could go strategically following that assessment?

George Kurosawa: Hi. Thanks for taking the questions. This is George for Steve. I wanted to ask about this ongoing enterprise assessment. Sounds pretty sweeping. Clearly, there were some signals that were loud enough to enable you to take some fairly decisive actions before completing that. Just when you think about the range of outcomes, what are some of the areas where you feel like there's the most sort of uncertainty in where you could go strategically following that assessment?

Speaker #3: But just when you think about the range of outcomes, what are some of the areas where you feel like there's the most sort of uncertainty in where you could go strategically following that assessment?

Speaker #4: Yeah. Hey, good morning, George. And thank you for the question. So first of all, just to your earlier comment, the way you opened the question, absolutely.

Ayman Antoun: Good morning, George, and thank you for the question. First of all, just to your earlier comment, the way you opened the question, absolutely, the reason that we launched it and the components we included in the assessment was 100% informed by the discussions I had with the 63 plus clients, over 28 of our investors, over 2,500 of my colleagues, and close to 22 of our top partners. These were all one-on-one discussions, not one-on-many, so there was no group thinking in the feedback I received. When we internalized the feedback, we felt that we have a really, really good opportunity, not just increasing the capacity from a sales point of view, but to do what the clients ask for in a more coordinated fashion.

Speaker #4: The reason that we launched it and the components we included in the assessment was 100% informed by the discussions I had with the 63-plus clients over 28 of our investors over 2,500 of my colleagues.

Speaker #4: partners. And these were all one-on-one discussions, not one-on-many, so there was no group thinking and the feedback I received. And we felt based on when we internalized the feedback, we felt that we have a really, really good opportunity, not just increasing the capacity from a sales point of view, but to do what the clients asked for, company in a more coordinated fashion.

Speaker #4: That's why those client executives are the ones that represent the holistic open text in front of the client, not brand by brand. We felt the clients that wanted to see more of us, but we didn't have the capacity to get there, would be best served by an ecosystem.

Ayman Antoun: That's why those client executives are the ones that represent the holistic OpenText in front of the client, not brand by brand. We felt the clients that wanted to see more of us, but we didn't have the capacity to get there, would be best served by an ecosystem. That's why we put some of our efforts there. As we were going through and listening, the clients also told us, Be fast and proactive. Give me use cases, give me innovation with purpose. I want to see more AI infused in your portfolio. Our sellers said to us, I'd like to get more sales enablement.

Speaker #4: That's why we would put some of our efforts there. But as we were going through and listening, the clients also told us, "Be fast and proactive.

Speaker #4: Give me use cases. Give me innovation with purpose. I want to see more AI infused in your portfolio." And our sellers, I said to us, "I'd like to get more sales enablement, the ability to not just understand our portfolio, but make it fit in a given client environment through an industry lens." And then we kind of looked at how we're spending our R&D money.

Ayman Antoun: The ability to not just understand our portfolio, but make it fit in a given client environment through an industry lens. We looked at how we're spending our R&D money, and to do that, we felt we needed to understand if we're putting it in the right category, and that was part of the work stream that we launched around the portfolio and the development. All of it informed by the feedback I received, and categorized and prioritized in the set of things that the clients, the partners, the investors, and the colleagues said would make the most difference.

Ayman Antoun: We looked at how we're spending our R&D money, and to do that, we felt we needed to understand if we're putting it in the right category, and that was part of the work stream that we launched around the portfolio and the development. All of it informed by the feedback I received, and categorized and prioritized in the set of things that the clients, the partners, the investors, and the colleagues said would make the most difference.

Speaker #4: And to do that, we felt we needed to understand if we're putting it in the right category. And that was part of the workstream that we launched around the portfolio and the development.

Speaker #4: So all of it informed, by the feedback I received, and categorized and prioritized in the set of things that the clients, the partners, the investors, and the colleagues said would make the most difference.

Speaker #3: Okay. Great. That's helpful. And then I wanted to ask on the maybe the deal environment, not universally, but some of your software colleagues in the market have seen some level of deal elongation it seems like a lot of AI products require additional levels of approvals.

[Analyst] (Citi): Okay, great. That's helpful. I wanted to ask on maybe the deal environment, not universally, but some of your software colleagues in the market have seen some level of deal elongation. It seems like a lot of AI products require additional levels of approvals. When I look at your Q4 results, it seems like bookings is fairly strong. Is that a dynamic that you all have been seeing out there and executed through? If not, what do you feel is allowing you to sidestep some of those headwinds?

George Kurosawa: Okay, great. That's helpful. I wanted to ask on maybe the deal environment, not universally, but some of your software colleagues in the market have seen some level of deal elongation. It seems like a lot of AI products require additional levels of approvals. When I look at your Q4 results, it seems like bookings is fairly strong. Is that a dynamic that you all have been seeing out there and executed through? If not, what do you feel is allowing you to sidestep some of those headwinds?

Speaker #3: When I look at your Q4 results, it seems like bookings is fairly strong. Is that a dynamic that you all have been seeing out there and executed through, or if not, what do you feel is allowing you to sidestep some of those headwinds?

Speaker #4: Yeah, that's another really important point that you're raising because as we have seen things happen to the industry segment and players in the segment, that's a topic we paid very close attention to throughout the fourth quarter.

Ayman Antoun: Yeah, that's another really important point that you're raising, because, as we have seen things happen to the industry segment and players in the segment that the public would pay very close attention to. Throughout Q4, we have not seen any material slowdown from our clients' engagements or deal delays that caused us not to get to end of job. Candidly, it takes me back to our core value proposition. There's not a single language model, there's not a single agent, there's not a single application that can function and give the client the output and the outcome they want without data and a data foundation. Because of the space we're in, and because of how they're all working hard to translate AI ambitions into reality, it did not cause us, in Q4, any visible material delay.

Speaker #4: We have not seen any material slowdown from our clients engagements or deal delays that caused us not to get to end of job. And candidly, it takes me back to our core value proposition.

Speaker #4: There's not a single language model. There's not a single agent. There's not a single application that can function and give the client the output.

Speaker #4: And the outcome they want without data and a data foundation. So because of the space we're in and because of how they're all working hard to translate AI ambitions into reality, it did not cause us in the fourth quarter any visible material delay.

Speaker #3: Great color. Thanks for taking the questions.

[Analyst] (Citi): Great color. Thanks for taking the questions.

George Kurosawa: Great color. Thanks for taking the questions.

Speaker #2: I will now hand the call back over to Mr. Antun for closing remarks.

Operator: I will now hand the call back over to Mr. Antoun for closing remarks.

Speaker #4: Thank you very much. I just thought to wrap this up and connect some of the points that you heard from Steve and I and also some of the answers to our questions.

Ayman Antoun: Thank you very much. I just thought to wrap this up and connect some of the points that you heard from Steve and I, and also some of the answers to our questions. We were very pleased with how we closed FY 2026 with the strong Q4. It gives us the opportunity to start FY 2027, a year that we're calling a foundation year for us, that will position us for strength for years to come. I am very confident of the road that we have ahead of us. As you heard from us, FY 2027 core revenue projected to grow between 2% to 3%, but just as importantly, every single one of the 4 categories in core. Our cloud revenue will grow between 8% to 10%. We expect our cloud bookings to be significant as well, close to 30%+ growth.

Ayman Antoun: Thank you very much. I just thought to wrap this up and connect some of the points that you heard from Steve and I, and also some of the answers to our questions. We were very pleased with how we closed FY 2026 with the strong Q4. It gives us the opportunity to start FY 2027, a year that we're calling a foundation year for us, that will position us for strength for years to come. I am very confident of the road that we have ahead of us. As you heard from us, FY 2027 core revenue projected to grow between 2% to 3%, but just as importantly, every single one of the four categories in core. Our cloud revenue will grow between 8% to 10%.

Speaker #4: We were very pleased with how we closed FY26 with a strong fourth quarter. It gets us the opportunity to start FY27, a year that we're calling a foundation year for us that we'll position us for strengths for years to come.

Speaker #4: I am very confident of the road that we have ahead of us. As you heard from us, FY27, core revenue projected to grow between 2 to 3 percent, but just as importantly, every single one of the four categories in core are cloud revenue will grow between 8 to 10 percent.

Speaker #4: We expect our cloud bookings to be significant as well. Close to 30-plus percent growth. As you heard me say, 92% of our cloud wins are new cloud business as opposed to base conversion.

Ayman Antoun: We expect our cloud bookings to be significant as well, close to 30%+ growth. As you heard me say, 92% of our cloud wins are new cloud business as opposed to base conversion. One of the components that I included in my remarks are the examples around how Aviator is being more and more integrated in our capabilities and the business that the clients acquire from us. Where when Aviator is included, the deal size is more than four times when it is not. You heard about the sales capacity, not just face-to-face in front of the client, but also the investment in activating our ecosystem. We're doing this while enabling everyone that is in front of the client to have more decision rights so they can act with speed.

Ayman Antoun: As you heard me say, 92% of our cloud wins are new cloud business as opposed to base conversion. One of the components that I included in my remarks are the examples around how Aviator is being more and more integrated in our capabilities and the business that the clients acquire from us. Where when Aviator is included, the deal size is more than four times when it is not. You heard about the sales capacity, not just face-to-face in front of the client, but also the investment in activating our ecosystem. We're doing this while enabling everyone that is in front of the client to have more decision rights so they can act with speed.

Speaker #4: One of the components that I included in my remarks are the examples around how Aviator is being more and more integrated in our capabilities and business that the clients acquire from us, where when Aviator is included the deal size is more than four times when it is not.

Speaker #4: You heard about the sales capacity, not just face-to-face in front of the client, but also the investment in activating our ecosystem. And we're doing this while enabling everyone that is in front of the client to have more decision rights so they can act with speed and as we have deployed our capacity, we're very conscious to make sure that it's providing not just additional capability to the client, but continuity of relationships so that we do not disrupt those relationships that we value and treasure very much.

Ayman Antoun: As we have deployed our capacity, we're very conscious to make sure that it's providing not just additional capability to the client, but continuity of relationships so that we do not disrupt those relationships that we value and treasure very much. The activation of the ecosystem will be a force multiplier for us over the next number of years. As you stitch all this together with what we started the call with, who OpenText is, the data and context foundational layer in the AI stack for our clients, the secure, trusted, mission-critical layer. That will be our value proposition today and going forward, not only just because of the AI buzz, but because, as I said, no language model, no AI agent, and no application would be able to produce the outcomes clients want without trusted, secure, well-governed data.

Speaker #4: The activation of the ecosystem will be a force multiplier for us over the next number of years. And as you stitch all this together, with what we started the call with, with who open text is, the data and context foundational layer in the AI stack for our clients, a secure, trusted mission-critical layer.

Speaker #4: That will be our value proposition today and going forward, not only just because of the AI buzz, but because as I said, no language model, no AI agent, and no application would be able to produce the outcomes clients want without trusted secure, well-governed data.

Speaker #4: And with that, thank you for everyone for joining us on the call this morning.

Ayman Antoun: With that, thank you for everyone for joining us on the call this morning.

Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Q4 2026 Open Text Corp Earnings Call

Request DemoDemo

Open Text

Earnings