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Is IDC’s AI Database Leadership Nod Reshaping The Investment Case For Open Text (OTEX)?

Simply Wall St · 1d ago
  • In 2025, OpenText was named a Leader in the IDC MarketScape for Worldwide Analytical Databases, reflecting the strength of its AI-powered OpenText Analytics Database, which supports real-time, petabyte-scale workloads across on-premises, private, and public cloud deployments with a focus on security and control.
  • This recognition underscores OpenText’s growing relevance as enterprises modernize data analytics infrastructure and seek large-scale, secure AI analytics platforms to handle expanding data volumes.
  • We’ll now examine how OpenText’s leadership in AI-powered analytical databases may influence its existing investment narrative and future positioning.

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Open Text Investment Narrative Recap

To own OpenText, you generally need to believe its pivot toward cloud and AI can more than offset pressure from declining legacy maintenance and restructuring noise. The IDC MarketScape recognition reinforces OpenText’s AI positioning, but does not materially change the near term focus on stabilizing slower growth businesses and executing its optimization plan, which remain key catalysts and risks for the story right now.

The recent launch of the OpenText AI Data Platform (AIDP) ties directly into this IDC recognition, since both center on secure, large scale analytics and AI for enterprises. Together they frame a clearer path for how OpenText aims to deepen data and AI integration across its portfolio, which could be important as investors watch for proof that newer cloud and AI offerings can offset weaker areas and justify ongoing investment and restructuring.

However, investors should also be aware of the risk that persistent weakness in key units, particularly cybersecurity, could...

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

Open Text's narrative projects $5.4 billion revenue and $862.6 million earnings by 2028.

Uncover how Open Text's forecasts yield a $40.45 fair value, a 21% upside to its current price.

Exploring Other Perspectives

OTEX Community Fair Values as at Dec 2025
OTEX Community Fair Values as at Dec 2025

Six members of the Simply Wall St Community currently estimate OpenText’s fair value between US$21.43 and US$68.12, highlighting very different expectations. Against this spread, the company’s push into AI powered analytics stands out as a potential swing factor for future performance, so it can be worth comparing several of these viewpoints side by side.

Explore 6 other fair value estimates on Open Text - why the stock might be worth 36% less than the current price!

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