Open Text Corporation's stock price surged 5.18% during Friday's intraday trading session, driven by the company's strong financial performance in the first quarter of fiscal year 2025. The sharp rise in stock price reflects investors' optimism following the company's impressive Q1 earnings results.

According to the earnings report, Open Text exceeded market expectations by delivering robust financial metrics. The company reported a 35% year-over-year growth in adjusted EBITDA, showcasing sustained operational efficiency. Additionally, the adjusted earnings per share (EPS) of $0.93 exceeded analysts' projections, indicating the company's profitability.

Investors were particularly encouraged by Open Text's progress in its cloud business. The company achieved its largest Q1 enterprise cloud bookings in history, with a 10.3% year-over-year increase. Furthermore, the company reaffirmed its fiscal 2025 targets, projecting total revenues between $5.3 billion and $5.4 billion, and free cash flow ranging from $575 million to $625 million.