Why it's happening: OpenText's results would have been even stronger, had it not been for the negative impact of foreign exchange. On a constant currency basis, OpenText's revenue would have climbed 7% year over year to $527.5 million, and adjusted net income would have arrived at $0.98 per share.
"OpenText is helping the world's leading brands digitize their business, both on- and off-premise," added OpenText CEO Mark Barrenechea, "and our strategy is showing bright-line success supported by our strong fourth quarter performance. With a more directly aligned sales leadership team in place, our sales organization performed extremely well in Q4, closing 26 deals over $1 million (11 cloud and 15 license)."
That's impressive however you slice it, and illustrated by the sheer gravity of OpenText's quarterly beat relative to Wall Street's expectations. With shares of OpenText currently trading at an attractive 13 times next year's estimated earnings -- and keeping in mind those estimates are likely to climb now -- it's no surprise the market is so aggressively bidding up the stock today.