diff --git a/staging/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers.go b/staging/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers.go
index 3c6159518d..112bbd42cf 100644
--- a/staging/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers.go
+++ b/staging/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers.go
@@ -125,16 +125,20 @@ func transientErrors(err error) error {
 }
 
 func incompatibleOperators(ctx context.Context, cli client.Client) (skews, error) {
-	next, err := desiredRelease(ctx, cli)
+	desired, err := desiredRelease(ctx, cli)
 	if err != nil {
 		return nil, err
 	}
 
-	if next == nil {
+	if desired == nil {
 		// Note: This shouldn't happen
-		return nil, fmt.Errorf("Failed to determine next OpenShift Y-stream release")
+		return nil, fmt.Errorf("Failed to determine current OpenShift Y-stream release")
+	}
+
+	next, err := nextY(*desired)
+	if err != nil {
+		return nil, err
 	}
-	next.Minor++
 
 	csvList := &operatorsv1alpha1.ClusterServiceVersionList{}
 	if err := cli.List(ctx, csvList); err != nil {
@@ -158,7 +162,7 @@ func incompatibleOperators(ctx context.Context, cli client.Client) (skews, error
 			continue
 		}
 
-		if max == nil || max.GTE(*next) {
+		if max == nil || max.GTE(next) {
 			continue
 		}
 		s.maxOpenShiftVersion = max.String()
@@ -189,6 +193,20 @@ func desiredRelease(ctx context.Context, cli client.Client) (*semver.Version, er
 	return &desired, nil
 }
 
+func nextY(v semver.Version) (semver.Version, error) {
+	v.Build = nil // Builds are irrelevant
+
+	if len(v.Pre) > 0 {
+		// Dropping pre-releases is equivalent to incrementing Y
+		v.Pre = nil
+		v.Patch = 0
+
+		return v, nil
+	}
+
+	return v, v.IncrementMinor() // Sets Y=Y+1 and Z=0
+}
+
 const (
 	MaxOpenShiftVersionProperty = "olm.maxOpenShiftVersion"
 )
diff --git a/staging/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers_test.go b/staging/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers_test.go
index 1f4b57120b..69e8f3a832 100644
--- a/staging/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers_test.go
+++ b/staging/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers_test.go
@@ -251,6 +251,11 @@ func TestIncompatibleOperators(t *testing.T) {
 				{
 					name:                "chestnut",
 					namespace:           "default",
+					maxOpenShiftVersion: "1.2.0-pre+build",
+				},
+				{
+					name:                "drupe",
+					namespace:           "default",
 					maxOpenShiftVersion: "2.0.0",
 				},
 			},
@@ -290,6 +295,11 @@ func TestIncompatibleOperators(t *testing.T) {
 				{
 					name:                "drupe",
 					namespace:           "default",
+					maxOpenShiftVersion: "1.1.0-pre+build",
+				},
+				{
+					name:                "european-hazelnut",
+					namespace:           "default",
 					maxOpenShiftVersion: "0.1.0",
 				},
 			},
@@ -314,6 +324,11 @@ func TestIncompatibleOperators(t *testing.T) {
 					{
 						name:                "drupe",
 						namespace:           "default",
+						maxOpenShiftVersion: "1.1.0-pre+build",
+					},
+					{
+						name:                "european-hazelnut",
+						namespace:           "default",
 						maxOpenShiftVersion: "0.1.0",
 					},
 				},
@@ -413,14 +428,14 @@ func TestIncompatibleOperators(t *testing.T) {
 			},
 		},
 		{
-			description: "Compatible/EmptyVersion",
+			description: "EmptyVersion",
 			cv: configv1.ClusterVersion{
 				ObjectMeta: metav1.ObjectMeta{
 					Name: "version",
 				},
 				Status: configv1.ClusterVersionStatus{
 					Desired: configv1.Update{
-						Version: "",
+						Version: "", // This should result in an transient error
 					},
 				},
 			},
@@ -441,6 +456,70 @@ func TestIncompatibleOperators(t *testing.T) {
 				incompatible: nil,
 			},
 		},
+		{
+			description: "ClusterZ",
+			cv: configv1.ClusterVersion{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "version",
+				},
+				Status: configv1.ClusterVersionStatus{
+					Desired: configv1.Update{
+						Version: "1.0.1", // Next Y-stream is 1.1.0, NOT 1.1.1
+					},
+				},
+			},
+			in: skews{
+				{
+					name:                "almond",
+					namespace:           "default",
+					maxOpenShiftVersion: "1.1.2",
+				},
+				{
+					name:                "beech",
+					namespace:           "default",
+					maxOpenShiftVersion: "1.1",
+				},
+			},
+			expect: expect{
+				err:          false,
+				incompatible: nil,
+			},
+		},
+		{
+			description: "ClusterPre",
+			cv: configv1.ClusterVersion{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "version",
+				},
+				Status: configv1.ClusterVersionStatus{
+					Desired: configv1.Update{
+						Version: "1.1.0-pre", // Next Y-stream is 1.1.0, NOT 1.2.0
+					},
+				},
+			},
+			in: skews{
+				{
+					name:                "almond",
+					namespace:           "default",
+					maxOpenShiftVersion: "1.1.0",
+				},
+				{
+					name:                "beech",
+					namespace:           "default",
+					maxOpenShiftVersion: "1.1.0-pre",
+				},
+			},
+			expect: expect{
+				err: false,
+				incompatible: skews{
+					{
+						name:                "beech",
+						namespace:           "default",
+						maxOpenShiftVersion: "1.1.0-pre",
+					},
+				},
+			},
+		},
 	} {
 		t.Run(tt.description, func(t *testing.T) {
 			objs := []client.Object{tt.cv.DeepCopy()}
diff --git a/vendor/github.com/operator-framework/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers.go b/vendor/github.com/operator-framework/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers.go
index 3c6159518d..112bbd42cf 100644
--- a/vendor/github.com/operator-framework/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers.go
+++ b/vendor/github.com/operator-framework/operator-lifecycle-manager/pkg/controller/operators/openshift/helpers.go
@@ -125,16 +125,20 @@ func transientErrors(err error) error {
 }
 
 func incompatibleOperators(ctx context.Context, cli client.Client) (skews, error) {
-	next, err := desiredRelease(ctx, cli)
+	desired, err := desiredRelease(ctx, cli)
 	if err != nil {
 		return nil, err
 	}
 
-	if next == nil {
+	if desired == nil {
 		// Note: This shouldn't happen
-		return nil, fmt.Errorf("Failed to determine next OpenShift Y-stream release")
+		return nil, fmt.Errorf("Failed to determine current OpenShift Y-stream release")
+	}
+
+	next, err := nextY(*desired)
+	if err != nil {
+		return nil, err
 	}
-	next.Minor++
 
 	csvList := &operatorsv1alpha1.ClusterServiceVersionList{}
 	if err := cli.List(ctx, csvList); err != nil {
@@ -158,7 +162,7 @@ func incompatibleOperators(ctx context.Context, cli client.Client) (skews, error
 			continue
 		}
 
-		if max == nil || max.GTE(*next) {
+		if max == nil || max.GTE(next) {
 			continue
 		}
 		s.maxOpenShiftVersion = max.String()
@@ -189,6 +193,20 @@ func desiredRelease(ctx context.Context, cli client.Client) (*semver.Version, er
 	return &desired, nil
 }
 
+func nextY(v semver.Version) (semver.Version, error) {
+	v.Build = nil // Builds are irrelevant
+
+	if len(v.Pre) > 0 {
+		// Dropping pre-releases is equivalent to incrementing Y
+		v.Pre = nil
+		v.Patch = 0
+
+		return v, nil
+	}
+
+	return v, v.IncrementMinor() // Sets Y=Y+1 and Z=0
+}
+
 const (
 	MaxOpenShiftVersionProperty = "olm.maxOpenShiftVersion"
 )