Descartes has executed a structural margin expansion, with operating margin reaching 33.2% in Q2 2027 on a 68.9% gross margin, creating a robust cash generation profile with a 39.4% FCF margin. This financial strength, underpinned by a near-zero debt balance a...
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Operating margin has expanded significantly to 33.2% in Q2 2027 from 26.8% a year prior, driven by a gross margin surge to 68.9%, indicating powerful operational leverage even as revenue growth cools to 11.3%.
Descartes powers efficient and sustainable supply chains through its Global Logistics Network (GLN), uniting logistics-intensive businesses.
The company continues to deploy $50M-$150M annually on acquisitions, with a bull case scenario pushing 1-year revenue growth to ~15%.
Scotiabank's adjusted price target suggests a 43.77% upside from current levels, reaffirming an Outperform rating despite lowering the target.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Sep 10, 2026 | $0.57+0.0% vs $0.57 | $199M+0.7% vs $198M |
Q3 2026 Jun 3, 2026 | $0.55+3.8% vs $0.53 | $198M+2.3% vs $194M |
Q2 2026 May 5, 2026 | $0.54-12.9% vs $0.62 | $196M-6.1% vs $209M |
Q2 2026 Mar 11, 2026 | $0.52+4.0% vs $0.50 | $193M+0.6% vs $192M |
Fewer than one in five organizations are using AI at scale as data quality, integration complexity and automation gaps challenge transportation transformation
The Global Logistics Network creates high switching costs for mission-critical logistics software. Revenue growth depends on the successful execution of a serial acquisition strategy.
The Descartes Systems Group Inc. (DSG:CA) Q2 2027 Earnings Call Transcript
Descartes Systems (DSGX) came out with quarterly earnings of $0.57 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.43 per share a year ago.
Benchmark DSGX against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for The Descartes Systems Group Inc. (DSGX)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $78.86 | $6.78B | 41.29 | 14.44% | 22.46% | 11.18% | — | |
| $348.38 | $9.29B | 36.59 | 0.79% | 8.19% | 10.63% | — | |
| $209.90 | $10.05B | 636.06 | 2.49% | -0.63% | -0.78% | — | |
| $145.71 | $7.8B | 29.62 | 11.04% | 15.23% | 23.44% | — | |
| $40.62 | $1.67B | 24.47 | 29.79% | 8.87% | 18.16% | — | |
| $27.90 | $1.72B | 12.68 | 10.21% | 9.8% | 13.43% | — |
The Descartes Systems Group Inc. (DSGX) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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The Descartes Systems Group Inc. (DSGX) stock FAQ — growth, dividends, profitability & financials explained
The Descartes Systems Group Inc. (DSGX) reported $777.5M in revenue for fiscal year 2026. This represents a 3692% increase from $20.5M in 1997.
The Descartes Systems Group Inc. (DSGX) grew revenue by 14.4% over the past year. This is steady growth.
Yes, The Descartes Systems Group Inc. (DSGX) is profitable, generating $188.6M in net income for fiscal year 2026 (22.5% net margin).
The Descartes Systems Group Inc. (DSGX) has a return on equity (ROE) of 11.2%. This is reasonable for most industries.
The Descartes Systems Group Inc. (DSGX) generated $299.5M in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
