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WATERLOO, Ontario - OpenText (NASDAQ:OTEX) (TSX:OTEX), a technology giant with a market capitalization of $8.06 billion and impressive gross profit margins of 75.9%, announced Monday that managed service providers (MSPs) leveraging its cybersecurity solutions and Secure Cloud platform can achieve up to 6.7 times return on every dollar invested, according to a new study conducted by Canalys. InvestingPro analysis suggests the company is currently undervalued, with additional data showing strong financial health metrics.
The OpenText Partner Ecosystem Multiplier (PEM) Study reveals that MSPs building integrated services around OpenText’s cybersecurity portfolio experience the greatest revenue growth across the full customer lifecycle. More than three-quarters of the revenue opportunity occurs after the initial sale, driven by managed services, vendor integration, and long-term support. This growth strategy has helped OpenText maintain its strong market position, with annual revenue of $5.17 billion and a consistent track record of shareholder returns, including 12 consecutive years of dividend increases.
"Our Secure Cloud platform and cybersecurity portfolio provide the foundation MSPs need to strengthen protection, simplify delivery, and unlock sustainable profitability," said Muhi Majzoub, Executive Vice President, Security Products at OpenText.
The findings were released at CRN’s XChange August 2025 in Denver, where Michael DePalma, Vice President of SMB Business Development at OpenText, will deliver a keynote on "Empowering MSP Growth in the AI-First Era." The presentation will cover how MSPs can meet customer expectations with solutions including Microsoft 365 Copilot and enhanced cybersecurity capabilities.
OpenText is also showcasing its Secure Cloud platform at the event, which the company says reduces complexity, improves delivery, and drives growth through bundled solutions and shared visibility.
The study indicates that MSPs achieving the strongest returns are those adopting a services-first strategy while fully utilizing OpenText’s product bundles, integrations, and support resources.
This information is based on a press release statement from OpenText. For detailed insights into OpenText’s financial performance and growth potential, including exclusive ProTips and comprehensive analysis, visit InvestingPro, where you’ll find the company’s complete Pro Research Report, one of 1,400+ detailed US equity analyses available to subscribers.
In other recent news, Open Text Corporation reported strong financial results for the fourth quarter of 2025, exceeding both earnings and revenue forecasts. The company’s earnings per share reached $0.97, surpassing the expected $0.82, while revenue totaled $1.31 billion, above the $1.28 billion forecast. Barclays responded by raising its price target for Open Text to $33.00 from $29.00, noting the company’s highest top-line beat since the third quarter of 2023 and its best organic growth level in fiscal year 2025. Scotiabank also increased its price target to $35.00, citing projected cloud growth of 3%-4% for fiscal year 2026. Meanwhile, Jefferies downgraded Open Text from Buy to Hold, lowering its price target to $33.00, following leadership changes. These changes include the appointment of James McGourlay as Interim CEO after the departure of longtime CEO Mark Barrenechea. McGourlay, a 25-year veteran of the company, previously served as Executive Vice President of International Sales. These developments reflect a period of significant transition and growth for Open Text.
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