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WATERLOO, Ontario - OpenText (NASDAQ:OTEX), a technology company with an $8 billion market capitalization and impressive 75.9% gross profit margins according to InvestingPro data, announced today it is expanding its collaboration with HPE by joining the HPE Unleash AI partner program to accelerate enterprise artificial intelligence adoption. Analysis from InvestingPro suggests the stock is currently undervalued, presenting a potential opportunity for investors.
The partnership will combine OpenText Aviator AI solutions with HPE Private Cloud AI, a turnkey enterprise AI platform within the NVIDIA AI Computing by HPE portfolio that was co-developed with NVIDIA. This strategic move comes as OpenText maintains strong financial health with a "GOOD" overall rating from InvestingPro, which has identified multiple positive factors including consistent dividend payments and strong shareholder returns.
"The Unleash AI program empowers innovative software partners like OpenText to simplify AI deployment and accelerate the impact of real-world AI outcomes," said Robin Braun, Vice President of AI Business Development for Hybrid Cloud at HPE.
The collaboration aims to deliver pre-validated AI solutions that can be deployed on-premises, at the edge, or in colocation facilities, enabling data sovereignty and cost predictability. The partnership focuses on enhancing decision-making, automating workflows, and improving customer experiences while maintaining data privacy and compliance.
Additionally, HPE Alletra Storage MP X10000 and OpenText Analytics Database will provide enterprises with analytics capabilities designed for AI, machine learning, and data lake requirements.
The announcement comes as the global AI market is projected to reach $3.68 trillion by 2034, according to Precedence Research cited in the press release. OpenText appears well-positioned to capitalize on this growth, with annual revenue of $5.17 billion and a track record of maintaining dividend payments for 13 consecutive years. For deeper insights into OpenText’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with detailed analysis and actionable intelligence.
Sandy Ono, EVP and Chief Marketing Officer at OpenText, said the company is "proud to be among a select group of AI leaders included in HPE’s Unleash AI program."
The collaboration targets industries including healthcare, finance, manufacturing, and retail with secure, scalable AI solutions.
This article is based on a press release statement from OpenText.
In other recent news, OpenText has made headlines with several notable developments. The company announced that its cybersecurity solutions and Secure Cloud platform offer managed service providers up to 6.7 times return on investment, according to a study by Canalys. This highlights the potential for significant revenue growth through integrated services and long-term support. Additionally, OpenText has undergone a leadership shakeup, appointing James McGourlay as Interim CEO following the departure of longtime CEO Mark Barrenechea and CFO Chadwick Westlake.
Analysts have also made adjustments to their outlooks on OpenText. Scotiabank raised its price target to $35, citing projected cloud growth in the upcoming fiscal years. Meanwhile, Jefferies downgraded the stock from Buy to Hold, lowering its price target to $33 due to recent leadership changes. Barclays also increased its price target to $33, noting OpenText’s strong fourth-quarter performance and improved growth metrics. These recent developments reflect a dynamic period for OpenText, with significant changes and projections shaping its future trajectory.
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