56.4%.
That was OpenText's increase in diluted earnings per share for the twelve months ended June 30. Revenue grew just 1.5%, from $5.2 billion to $5.2 billion, so the headline improvement came less from selling more software than from keeping more of each dollar and spreading earnings across fewer shares.
The business did widen its margins. Operating income rose 21.3%, net income climbed 47.5%, and diluted shares fell 5.4%. Operating margin reached 20.6%, up from 17.3% a year earlier. The arithmetic is clean enough. The operating story is not quite so simple.
OpenText's sales and marketing costs increased alongside larger deals. Sales and marketing costs increased $76.5 million, and the company tied that increase to investments in sales employees and higher commissions from larger License and Cloud services contracts.
"Sales and marketing expenses increased by $76.5 million during the year ended June 30, 2026, as compared to the prior fiscal year, primarily driven by investments in sales employees and higher commissions from increased large-deal volumes in both License and Cloud services contracts."
OpenText, 2026 10-K filed August 6, 2026.
That is a different kind of growth investment from simply adding seats or subscriptions. The filing describes more expensive selling activity around bigger contracts, while total revenue still moved only slightly. Gross margin improved to 73.7%, and lower customer-support labor costs also helped the margin line.
Cash generation improved in absolute terms. Operating cash flow rose 21.2% to $1.0 billion, with management attributing the increase principally to higher net income after non-cash items.
"Cash flows from operating activities increased by $176.2 million during the year ended June 30, 2026, as compared to the same period in the prior fiscal year principally related to an increase in net income after the impact of non-cash items of $140.4 million, partially offset by an increase in net changes from working capital of $35.8 million."
OpenText, 2026 10-K filed August 6, 2026.
The qualification matters. Cash conversion, operating cash flow relative to net income, fell to 1.57 times from 1.91 times. Accounts receivable rose 13.9%, and capital spending increased 39.2% to $199.3 million. The company does not give a further reason for those balance-sheet and investment changes in the supplied receipts.
The balance sheet adds another layer. Cash ended at $956.0 million, down from $1.2 billion, while financing activity included $613.0 million of long-term debt prepayments and repayments. Divestitures brought in $311.9 million of cash during the year, but that did not prevent the year-end cash balance from falling.
At the latest close, OpenText had a $6.8 billion market value against $5.2 billion of net debt and traded at 15.5 times earnings. Those figures put the filing's central tension in plain English: earnings and cash improved sharply without much top-line expansion, but some of the cash and margin evidence carries working-capital, investment, and financing footnotes.
OpenText's next quarterly report will provide the next comparison for receivables and cash conversion. Revenue is barely growing; profitability is doing the heavy lifting.