Is Micro Focus still an independent company in 2026?

No. Micro Focus ceased to exist as an independent company when OpenText's acquisition closed January 31, 2023. It now operates only as a legacy product brand inside OpenText, spanning DevOps Cloud, Cybersecurity Cloud, and Observability lines, with no separate financial reporting.

Who owns Micro Focus now?

Micro Focus is wholly owned by OpenText Corporation (NASDAQ/TSX: OTEX), a Canadian company headquartered in Waterloo, Ontario. The acquisition closed January 31, 2023, and Micro Focus has no separate ownership, stock, or valuation since then.

Could AI replace the products Micro Focus used to make?

Largely yes for testing tools. AI-native testers like Applitools and mabl are displacing Micro Focus's record-and-playback testing (Silk Test, LoadRunner), and CAST and Blu Age compete on COBOL modernization. OpenText itself cut 1,600 jobs in May 2025, citing AI-driven role elimination.

Is joining OpenText (formerly Micro Focus) safe right now?

Risky. OpenText cut 1,600 roles in May 2025, another 4% of staff around March 2026 tied to a CEO transition, and 2% more (~880 jobs) in July 2026. Stock fell 33% year-to-date by March 2026 to a 52-week low of $30.03, signaling ongoing restructuring.

Did Micro Focus's mainframe/COBOL business get sold off?

Yes. OpenText divested the Application Modernization and Connectivity (AMC) business, including Micro Focus's COBOL tools, to Rocket Software for $2.275 billion, completing May 1, 2024. Proceeds were used to pay down $2 billion in debt, removing Micro Focus's strongest lock-in asset.

Is OpenText, which owns Micro Focus, profitable and growing?

OpenText's FY2025 (ended June 30, 2025) total revenue fell 10.4% year-over-year to $5.168B, and annual recurring revenue dropped 7.6% to $4.191B. FY2026 guidance called for only 1-2% total revenue growth, suggesting stabilization rather than strong growth as of August 2025.

Cloud and infrastructure providers · subsidiary of OpenText Corporation (NASDAQ: OTEX, TSX: OTEX) · United Kingdom

Micro Focus

microfocus.com ↗

Legacy enterprise testing, security, and mainframe software, now a brand inside OpenText.

Protection under test

Assessed 21 July 2026 · Evidence as of 21 July 2026

Something worth protecting exists and is being tested right now.

On the recordSince 21 July 2026 · Checkable from August 2026 · Every call on the record Checkpoint: OpenText FY2026 Q4 earnings, first full year under CEO Ayman Antoun, shows if cloud bookings growth holds

The call

Micro Focus no longer exists as an independent bet; its former products now ride inside OpenText's shrinking, restructuring cloud business.

Micro Focus makes testing, security, and application management software for large organizations, especially those still running old mainframe computers. It is hard to replace because some customers depend heavily on its products and cannot easily switch, but that advantage is weakening: the company sold off its mainframe division to Rocket Software in 2024, bigger companies like IBM and Broadcom are taking market share, and new AI-powered tools from startups like Applitools and mabl can do some of the same work faster and cheaper. The one thing that could change the picture is whether the new leader at parent company OpenText can get the remaining Micro Focus products growing again in the cloud instead of continuing to shrink and lay off staff, a sign that should become clear by late 2026 or early 2027.

Why

AI pressure: AI-native test automation (Applitools, mabl, Testim) and AI code transpilation (CAST, Blu Age). AI tools self-heal tests and auto-modernize COBOL, hitting the exact jobs Micro Focus ALM and mainframe tools used to lock in. Could AI do the core job? Yes, likely.

Bigger players: IBM, Broadcom, Microsoft, Cisco/Splunk. Bigger security and ALM suites from IBM, Broadcom, and Microsoft keep pulling budget from the former Micro Focus product lines. Could a giant copy it? Yes, easily.

What protects it. Large installed base of regulated enterprises still running old ALM, security, and mainframe tools they haven't migrated off yet.

What would change this call

OpenText Q1/Q2 FY2027 organic revenue growth turns positive or stays negative under CEO Antoun. Shows whether the Micro Focus-heritage business is stabilizing or still shrinking.
Cloud bookings growth for FY2026 lands near guided 3-4% or falls back toward 2%. Indicates whether the 32% Q4 FY2025 bookings spike was durable or a one-off.
Announcement of another divestiture of a Micro Focus-heritage unit (e.g. Silk Test, LoadRunner, ArcSight, ALM). Would confirm continued managed harvest of the acquired product lines rather than reinvestment.

Key numbers

OpenText FY2025 revenue $5.168B, down 10.4% Y/Y (2025-06-30)
Cybersecurity cloud revenue fell 4% in FY2025 (2025-06-30)
1,600 jobs cut May 2025, tied to AI priority (2025-05-06)

Named risks

Serial layoffs (2024, 2025, twice in 2026) causing reported knowledge loss and instability. Severity: high
Core moat (mainframe/COBOL lock-in) already divested to Rocket Software, leaving legacy lines exposed. Severity: high
AI-native testing and modernization tools directly displacing legacy Micro Focus product categories. Severity: high
New CEO (Antoun, since April 2026) creates strategic uncertainty during ongoing restructuring. Severity: medium
Macro headwinds from tariffs and government spending cuts cost $40-50M in bookings in 2025. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
IBM	losing to	IBM's ADDI and ELM directly compete in ALM and COBOL modernization, no structural wall for Micro Focus lines (2026)
Broadcom	losing to	Broadcom (ex-CA Technologies) competes head-on in application release orchestration, per Gartner comparisons
Applitools/mabl	losing to	AI-native self-healing testing displacing Silk Test/LoadRunner record-and-playback approach, noted Sept 2025
CAST/Blu Age	losing to	AI-assisted code transpilation competes with traditional COBOL replatforming, comparison published 2026-05-18
Rocket Software	losing to	Rocket now owns former Micro Focus AMC/Visual COBOL assets after $2.275B acquisition, May 2024
Splunk/Cisco	contesting	Adjacent SIEM competition to ArcSight/NetIQ security lines amid 4% Cybersecurity Cloud revenue decline FY2025

Questions people ask

Is Micro Focus still an independent company in 2026?: No. Micro Focus ceased to exist as an independent company when OpenText's acquisition closed January 31, 2023. It now operates only as a legacy product brand inside OpenText, spanning DevOps Cloud, Cybersecurity Cloud, and Observability lines, with no separate financial reporting.
Who owns Micro Focus now?: Micro Focus is wholly owned by OpenText Corporation (NASDAQ/TSX: OTEX), a Canadian company headquartered in Waterloo, Ontario. The acquisition closed January 31, 2023, and Micro Focus has no separate ownership, stock, or valuation since then.
Could AI replace the products Micro Focus used to make?: Largely yes for testing tools. AI-native testers like Applitools and mabl are displacing Micro Focus's record-and-playback testing (Silk Test, LoadRunner), and CAST and Blu Age compete on COBOL modernization. OpenText itself cut 1,600 jobs in May 2025, citing AI-driven role elimination.
Is joining OpenText (formerly Micro Focus) safe right now?: Risky. OpenText cut 1,600 roles in May 2025, another 4% of staff around March 2026 tied to a CEO transition, and 2% more (~880 jobs) in July 2026. Stock fell 33% year-to-date by March 2026 to a 52-week low of $30.03, signaling ongoing restructuring.
Did Micro Focus's mainframe/COBOL business get sold off?: Yes. OpenText divested the Application Modernization and Connectivity (AMC) business, including Micro Focus's COBOL tools, to Rocket Software for $2.275 billion, completing May 1, 2024. Proceeds were used to pay down $2 billion in debt, removing Micro Focus's strongest lock-in asset.
Is OpenText, which owns Micro Focus, profitable and growing?: OpenText's FY2025 (ended June 30, 2025) total revenue fell 10.4% year-over-year to $5.168B, and annual recurring revenue dropped 7.6% to $4.191B. FY2026 guidance called for only 1-2% total revenue growth, suggesting stabilization rather than strong growth as of August 2025.

Timeline

2026-07-09OpenText cuts about 880 jobs, roughly 2% of workforce, amid ongoing restructuring
2026-04-20Ayman Antoun, former IBM Americas president, becomes OpenText CEO
2026-03-24OpenText cuts 4% of global workforce; OTEX stock hits 52-week low of $30.03
2025-10OpenText sells eDOCS business unit, a legacy Micro Focus line, to NetDocuments for $163M
2025-08-07OpenText reports FY2025 revenue of $5.168B, down 10.4% Y/Y; issues FY2026 growth guidance
2025-08CEO Mark Barrenechea ousted; James McGourlay named interim CEO
2025-05-06OpenText announces 1,600 job cuts explicitly tied to AI-driven headcount reduction
2024-06OpenText cuts about 1,200 roles, adds 800 elsewhere, under Business Optimization Plan
2024-05-01OpenText completes $2.275B divestiture of AMC/mainframe business to Rocket Software
2023-01-31OpenText's acquisition of Micro Focus closes; Micro Focus ceases independent existence

Revision history

21 July 2026

First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.

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Sources

OpenText Buys Micro Focus (2023-01-31)
The value of Micro Focus to OpenText, analysts weigh in (2024-08-20)
OpenText Reports Fourth Quarter and Fiscal Year 2025 Financial Results (2025-08-07)
OpenText Reports Fourth Quarter and Fiscal Year 2025 Financial Results (2025-08-07)
Open Text Corp Q4 2025 earnings summary (2025-08-07)
OpenText Plans To Lay Off 1,200 Employees (2024)
OpenText makes AI "number-one priority" as company slashes 1,600 jobs (2025-05-06)
OpenText lays off two percent of its workforce (2026-07-09)
OpenText lays off four percent of its global workforce (2026-03-24)
OpenText Business Optimization Plan: Cost Fix or Risky Reset? (2025-06-05)
OpenText Completes Divestiture of AMC Business to Rocket Software (2024-05-01)
List of Best Micro Focus Caliber (discontinued) Alternatives & Competitors 2026