OpenText vs Zoom Communications
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KIRA’s take AI analyst
I put OpenText and Zoom Communications side by side, using each one’s latest annual report. Here is what stands out:
- OpenText is the larger business, with $5.2B of revenue in fiscal 2026 against $4.9B for Zoom Communications.
- Zoom Communications grew revenue faster (4.4%, against 1.5%).
- Zoom Communications kept more of each dollar of sales as operating profit (23.1% operating margin, against 20.6%).
- Zoom Communications turned more of its sales into free cash flow (39.5% FCF margin, against 15.4%).
- Zoom Communications earned a higher return on the capital invested in it (56.2%, against 9.0%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
OpenText
OTEX
2/11
Piotroski F-scoreShare count change
Zoom Communications
ZM
9/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | OTEX FY26 | ZM FY26 |
|---|---|---|
| Size | ||
| Market cap | $6.9B | $29.4B |
| Revenue | $5.2B | $4.9B |
| Free cash flow | $808M | $1.9B |
| Net income | $643M | $1.9B |
| Growth | ||
| Revenue growth | 1.5% | 4.4% |
| 5-year growth | 9.2% | 12.9% |
| Share count change | −5.4% | −2.5% |
| Profitability | ||
| Gross margin | 73.7% | 77.0% |
| Operating margin | 20.6% | 23.1% |
| Net margin | 12.3% | 39.0% |
| FCF margin | 15.4% | 39.5% |
| Return on capital | 9.0% | 56.2% |
| Return on equity | 16.2% | 20.3% |
| Balance sheet | ||
| Net debt | $4.8B | −$7.8B |
| Net debt / EBITDA | 3.2x | −6.2x |
| Dividends and buybacks | $685M | $1.6B |
| Valuation & quality | ||
| P/E | — | 9.1x |
| Piotroski F-score | 9 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.