Revenue growth reached 15.7% in 2027Q1, while operating margins expanded to 33.3% as the company effectively leveraged its global logistics network infrastructure.
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Jan'08 | Jan'07 | Jan'06 | Jan'05 | Jan'04 | Jan'03 | Jan'02 | Jan'01 | Jan'00 | Jan'99 | Jan'98 | Jan'97 |
|---|
| Sales/Revenue | 757.13M | 744.99M | 651M | 572.93M | 486.01M | 424.69M | 348.66M | 325.79M | 275.17M | 237.44M | 203.78M | 184.99M | 170.86M | 151.29M | 126.88M | 113.99M | 99.17M | 73.77M | 66.04M | 59.02M | 51.99M | 45.73M | 46.4M | 59.78M | 70.38M | 79.52M | 66.65M | 43.67M | 48.8M | 19.36M | 20.51M |
| Revenue Growth % | 13.28% | 14.44% | 13.63% | 17.88% | 14.44% | 21.8% | 7.02% | 18.4% | 15.89% | 16.52% | 10.15% | 8.27% | 12.93% | 19.24% | 11.31% | 14.94% | 34.44% | 11.7% | 11.89% | 13.53% | 13.69% | -1.44% | -22.4% | -15.06% | -11.49% | 19.31% | 52.64% | -10.52% | 152.01% | -5.56% | - |
| Cost of Goods Sold | 230.64M | 253.7M | 158.57M | 138.29M | 113.33M | 101.81M | 89.91M | 85.72M | 74.99M | 63.7M | 56.05M | 53.86M | 54.88M | 49.04M | 42.4M | 38.31M | 33.88M | 23.17M | 22.35M | 20.64M | 17.49M | 18.13M | 21.05M | 19.39M | 26.63M | 27.7M | 22.17M | 21.15M | 4.7M | 4.47M | 4.47M |
| COGS % of Revenue | - | 34.05% | 24.36% | 24.14% | 23.32% | 23.97% | 25.79% | 26.31% | 27.25% | 26.83% | 27.51% | 29.11% | 32.12% | 32.42% | 33.42% | 33.61% | 34.16% | 31.41% | 33.85% | 34.97% | 33.64% | 39.64% | 45.38% | 32.43% | 37.84% | 34.83% | 33.27% | 48.45% | 9.63% | 23.1% | 21.81% |
| Gross Profit | 526.49M | 491.29M | 492.43M | 434.64M | 372.69M | 322.88M | 258.75M | 240.07M | 200.18M | 173.74M | 147.73M | 131.13M | 115.98M | 102.25M | 84.48M | 75.68M | 65.3M | 50.6M | 43.69M | 38.38M | 34.5M | 27.6M | 25.34M | 40.4M | 43.75M | 51.82M | 44.48M | 22.51M | 44.1M | 16.03M | 16.03M |
| Gross Margin % | 69.54% | 65.95% | 75.64% | 75.86% | 76.68% | 76.03% | 74.21% | 73.69% | 72.75% | 73.17% | 72.49% | 70.89% | 67.88% | 67.58% | 66.58% | 66.39% | 65.84% | 68.59% | 66.15% | 65.03% | 66.36% | 60.36% | 54.62% | 67.57% | 62.16% | 65.17% | 66.73% | 51.55% | 90.37% | 82.79% | 78.19% |
| Gross Profit Growth % | - | -0.23% | 13.3% | 16.62% | 15.43% | 24.78% | 7.78% | 19.93% | 15.22% | 17.6% | 12.65% | 13.07% | 13.43% | 21.03% | 11.64% | 15.89% | 29.06% | 15.8% | 13.82% | 11.25% | 25% | 8.92% | -37.27% | -7.67% | -15.57% | 16.51% | 97.58% | -48.95% | 175.07% | 0% | - |
| Operating Expenses | 285.44M | 250.72M | 311.3M | 291.79M | 242.25M | 219.45M | 187.36M | 187.81M | 158.73M | 137.85M | 117.03M | 103.04M | 93.41M | 87.58M | 64.93M | 60.45M | 57.56M | 44.21M | 35.96M | 33.14M | 30.9M | 1.72M | 79.15M | 77.71M | 184.54M | 106.72M | 81.06M | 45.01M | 51.7M | 27.45M | 27.45M |
| OpEx % of Revenue | - | 33.65% | 47.82% | 50.93% | 49.85% | 51.67% | 53.74% | 57.65% | 57.69% | 58.06% | 57.43% | 55.7% | 54.67% | 57.89% | 51.17% | 53.03% | 58.04% | 59.94% | 54.45% | 56.14% | 59.44% | 3.76% | 170.59% | 129.99% | 262.2% | 134.21% | 121.63% | 103.08% | 105.94% | 141.78% | 133.89% |
| Selling, General & Admin | 161.22M | 155.03M | 138.94M | 125.53M | 106.28M | 91.35M | 75.05M | 75.02M | 66.89M | 58.58M | 48.02M | 44.03M | 40.74M | 37.19M | 29.46M | 27.28M | 25.13M | 22.79M | 18.28M | 16.95M | 17.18M | 16.22M | 32.3M | 44.21M | 42.84M | 40.29M | 31.63M | 26.05M | 18.8M | 12.18M | 12.18M |
| SG&A % of Revenue | - | 20.81% | 21.34% | 21.91% | 21.87% | 21.51% | 21.53% | 23.03% | 24.31% | 24.67% | 23.56% | 23.8% | 23.84% | 24.58% | 23.22% | 23.93% | 25.33% | 30.89% | 27.68% | 28.72% | 33.05% | 35.47% | 69.61% | 73.95% | 60.86% | 50.67% | 47.45% | 59.66% | 38.52% | 62.9% | 59.4% |
| Research & Development | 108.09M | 107.62M | 95.5M | 84.44M | 70.35M | 62.57M | 54.07M | 53.51M | 47.87M | 41.8M | 35.56M | 31.29M | 28.08M | 25.88M | 21.27M | 19.04M | 16.97M | 14.5M | 11.46M | 10.54M | 9.03M | 6.99M | 10.42M | 9.38M | 15.22M | 25.39M | 16.19M | 15.03M | 11.3M | 3.85M | 3.85M |
| R&D % of Revenue | - | 14.45% | 14.67% | 14.74% | 14.48% | 14.73% | 15.51% | 16.43% | 17.4% | 17.61% | 17.45% | 16.92% | 16.43% | 17.11% | 16.76% | 16.71% | 17.11% | 19.65% | 17.35% | 17.86% | 17.37% | 15.29% | 22.46% | 15.69% | 21.63% | 31.92% | 24.29% | 34.42% | 23.16% | 19.9% | 18.79% |
| Other Operating Expenses | -1000K | -11.93M | 76.86M | 81.81M | 65.62M | 65.53M | 58.24M | 59.28M | 43.98M | 37.47M | 33.46M | 27.71M | 24.59M | 24.51M | 14.2M | 14.13M | 15.47M | 6.93M | 6.22M | 5.64M | 4.69M | -21.49M | 36.43M | 24.12M | 126.48M | 41.04M | 33.25M | 3.93M | 21.6M | 11.42M | 11.42M |
| Operating Income | 241.05M | 240.57M | 181.12M | 142.85M | 130.43M | 103.43M | 71.4M | 52.26M | 41.44M | 35.88M | 30.7M | 28.1M | 22.58M | 14.67M | 17.19M | 15.22M | 7.74M | 6.38M | 7.73M | 5.25M | 3.6M | 25.88M | -53.8M | -37.31M | -140.79M | -54.9M | -36.59M | -25.99M | -7.6M | -10.71M | -11.42M |
| Operating Margin % | 31.84% | 32.29% | 27.82% | 24.93% | 26.84% | 24.36% | 20.48% | 16.04% | 15.06% | 15.11% | 15.06% | 15.19% | 13.21% | 9.7% | 13.55% | 13.36% | 7.8% | 8.65% | 11.7% | 8.89% | 6.92% | 56.6% | -115.97% | -62.42% | -200.03% | -69.04% | -54.89% | -59.52% | -15.57% | -55.32% | -55.7% |
| Operating Income Growth % | - | 32.82% | 26.79% | 9.52% | 26.1% | 44.87% | 36.62% | 26.1% | 15.49% | 16.9% | 9.25% | 24.46% | 53.9% | -14.68% | 12.93% | 96.76% | 21.23% | -17.41% | 47.28% | 45.82% | -86.1% | 148.11% | -44.19% | 73.5% | -156.44% | -50.07% | -40.76% | -241.98% | 29.05% | 6.22% | - |
| EBITDA | 326.71M | 329.62M | 256.11M | 208.82M | 194.71M | 166.74M | 136.02M | 113.9M | 86.17M | 73.46M | 64.33M | 57.7M | 47.59M | 36.06M | 34.27M | 29.68M | 21.63M | 15.18M | 15.09M | 11.32M | 8.58M | 30.92M | -46.94M | -26.78M | -126.98M | -17.41M | -19.86M | -18.32M | 14M | -274.67K | 0 |
| EBITDA Margin % | 43.15% | 44.24% | 39.34% | 36.45% | 40.06% | 39.26% | 39.01% | 34.96% | 31.31% | 30.94% | 31.57% | 31.19% | 27.85% | 23.84% | 27.01% | 26.04% | 21.81% | 20.58% | 22.85% | 19.18% | 16.51% | 67.61% | -101.18% | -44.79% | -180.42% | -21.89% | -29.79% | -41.95% | 28.69% | -1.42% | - |
| EBITDA Growth % | 23.59% | 28.7% | 22.64% | 7.25% | 16.77% | 22.58% | 19.42% | 32.19% | 17.29% | 14.2% | 11.49% | 21.25% | 31.95% | 5.23% | 15.46% | 37.24% | 42.46% | 0.59% | 33.33% | 31.87% | -72.24% | 165.86% | -75.28% | 78.91% | -629.41% | 12.33% | -8.41% | -230.84% | 5197.04% | - | - |
| D&A (Non-Cash Add-back) | 85.66M | 89.04M | 74.99M | 65.97M | 64.27M | 63.3M | 64.62M | 61.64M | 44.72M | 37.58M | 33.63M | 29.6M | 25.01M | 21.39M | 17.08M | 14.46M | 13.89M | 8.8M | 7.36M | 6.07M | 4.99M | 5.03M | 6.86M | 10.54M | 13.81M | 37.49M | 16.73M | 7.67M | 21.6M | 10.44M | 11.42M |
| EBIT | 239.01M | 240.57M | 188.59M | 152.51M | 132.56M | 102.24M | 71.56M | 52.55M | 41.64M | 36.05M | 32.11M | 28.29M | 22.91M | 14.73M | 17.27M | 15.4M | 7.95M | 6.38M | 8.56M | 7.25M | 5.47M | 25.66M | -39.75M | -18.53M | -129.08M | -46.42M | -17.55M | -25.99M | -7.6M | -10.71M | 0 |
| Net Interest Income | -968.99K | -988.22K | -1M | -1.36M | -1.17M | -1.12M | -1.19M | -4.42M | -2.13M | -1.3M | -611K | -522K | -1.09M | -936K | -45K | -9K | -14K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 57K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 968.99K | 988.22K | 1M | 1.36M | 1.17M | 1.12M | 1.19M | 4.42M | 2.13M | 1.3M | 611K | 522K | 1.09M | 993K | 45K | 9K | 14K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -5.52M | -18.72M | 10.51M | 8.3M | 3.29M | -824K | -1.03M | -4.22M | -1.93M | -1.14M | 804K | -327K | -755K | -936K | 28K | 165K | 195K | 342K | 1M | 1.52M | 592K | 0 | -1.2M | -5.15M | 1.87M | -4.09M | 5.27M | 25.99M | -18.2M | 10.71M | -275.24K |
| Pretax Income | 235.53M | 221.85M | 191.63M | 151.15M | 133.73M | 102.61M | 70.37M | 48.03M | 39.51M | 34.75M | 31.5M | 27.77M | 21.82M | 13.73M | 17.22M | 15.39M | 7.93M | 6.72M | 8.73M | 6.77M | 4.19M | 3.08M | -55.01M | -42.47M | -138.92M | -58.99M | -31.32M | 0 | -25.8M | 0 | -11.7M |
| Pretax Margin % | 31.11% | 29.78% | 29.44% | 26.38% | 27.52% | 24.16% | 20.18% | 14.74% | 14.36% | 14.63% | 15.46% | 15.01% | 12.77% | 9.08% | 13.57% | 13.5% | 8% | 9.12% | 13.22% | 11.46% | 8.06% | 6.75% | -118.56% | -71.03% | -197.37% | -74.18% | -46.99% | - | -52.87% | - | -57.05% |
| Income Tax | 58.73M | 54.49M | 48.36M | 35.24M | 31.49M | 16.33M | 18.27M | 11.04M | 8.23M | 7.87M | 7.66M | 7.21M | 6.76M | 4.12M | 1.23M | 3.36M | -3.61M | -7.63M | -11.48M | -15.68M | 204K | 96K | 325K | 287K | -362K | 78K | 310K | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 24.94% | 24.56% | 25.24% | 23.32% | 23.55% | 15.91% | 25.96% | 22.98% | 20.84% | 22.65% | 24.32% | 25.96% | 30.99% | 30.01% | 7.11% | 21.86% | -45.46% | -113.38% | -131.47% | -231.7% | 4.87% | 3.11% | -0.59% | -0.68% | 0.26% | -0.13% | -0.99% | - | 0% | - | 0% |
| Net Income | 176.8M | 167.36M | 143.27M | 115.91M | 102.24M | 86.28M | 52.1M | 37M | 31.28M | 26.88M | 23.84M | 20.56M | 15.06M | 9.61M | 16M | 12.03M | 11.54M | 14.35M | 20.21M | 22.44M | 3.99M | 2.99M | -55.33M | -42.75M | -138.19M | -58.72M | -31.63M | -24.47M | -25.9M | -10.99M | -11.7M |
| Net Margin % | 23.35% | 22.46% | 22.01% | 20.23% | 21.04% | 20.32% | 14.94% | 11.36% | 11.37% | 11.32% | 11.7% | 11.12% | 8.81% | 6.35% | 12.61% | 10.55% | 11.63% | 19.45% | 30.6% | 38.02% | 7.67% | 6.54% | -119.26% | -71.51% | -196.35% | -73.84% | -47.45% | -56.04% | -53.07% | -56.74% | -57.05% |
| Net Income Growth % | 22.05% | 16.81% | 23.61% | 13.37% | 18.49% | 65.61% | 40.82% | 18.29% | 16.36% | 12.76% | 15.93% | 36.54% | 56.67% | -39.91% | 33.01% | 4.22% | -19.59% | -29% | -9.95% | 462.9% | 33.39% | 105.4% | -29.42% | 69.06% | -135.35% | -85.66% | -29.25% | 5.52% | -135.74% | 6.08% | - |
| Net Income (Continuing) | 176.8M | 167.36M | 143.27M | 115.91M | 102.24M | 86.28M | 52.1M | 37M | 31.28M | 26.88M | 23.84M | 20.56M | 15.06M | 9.61M | 16M | 12.03M | 11.54M | 14.35M | 20.21M | 22.44M | 3.99M | 2.99M | -55.33M | -42.75M | -138.11M | -59.07M | -31.63M | -24.47M | -25.9M | -10.99M | -11.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.02 | 1.91 | 1.64 | 1.34 | 1.18 | 1.00 | 0.61 | 0.45 | 0.40 | 0.35 | 0.31 | 0.27 | 0.21 | 0.15 | 0.25 | 0.19 | 0.18 | 0.25 | 0.38 | 0.43 | 0.09 | 0.07 | -1.36 | -0.90 | -2.65 | -1.15 | -0.72 | -0.59 | -0.79 | -1.03 | -1.03 |
| EPS Growth % | 21.69% | 16.46% | 22.39% | 13.56% | 18% | 63.93% | 35.56% | 12.5% | 14.29% | 12.9% | 14.81% | 28.57% | 40% | -40% | 31.58% | 5.56% | -28% | -34.21% | -11.63% | 377.78% | 28.57% | 105.15% | -51.11% | 66.04% | -130.43% | -59.72% | -22.03% | 25.32% | 23.3% | 0% | - |
| EPS (Basic) | - | 1.95 | 1.68 | 1.36 | 1.21 | 1.02 | 0.62 | 0.45 | 0.41 | 0.35 | 0.31 | 0.27 | 0.21 | 0.15 | 0.26 | 0.19 | 0.19 | 0.26 | 0.38 | 0.44 | 0.09 | 0.07 | -1.36 | -0.93 | -2.65 | -1.15 | -0.72 | -0.59 | -0.79 | -1.03 | -1.03 |
| Diluted Shares Outstanding | 87.39M | 87.58M | 87.32M | 86.82M | 86.45M | 86.2M | 85.76M | 82.87M | 77.79M | 77.11M | 76.52M | 76.41M | 71.58M | 64.37M | 63.86M | 63.4M | 62.89M | 56.44M | 53.66M | 52.29M | 46.48M | 41.6M | 40.71M | 47.74M | 52.24M | 50.86M | 44.22M | 36.71M | 32.93M | 11.38M | 11.38M |
| Basic Shares Outstanding | 86.02M | 85.87M | 85.44M | 85.07M | 84.79M | 84.59M | 84.36M | 81.66M | 76.83M | 76.32M | 75.8M | 75.59M | 70.56M | 62.84M | 62.56M | 62.22M | 61.52M | 55.39M | 52.96M | 51.23M | 45.23M | 40.71M | 40.71M | 45.95M | 52.23M | 50.86M | 44.22M | 36.71M | 32.93M | 11.38M | 11.38M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Acquisition integration and execution
According to the provided financial data, Descartes Systems Group achieved a revenue growth rate of 15.7% in 2027Q1, reflecting a consistent upward trajectory that appears supported by both organic network expansion and the strategic integration of niche logistics technology providers into their existing global infrastructure.
The company's ability to maintain double-digit revenue growth suggests that its 'string of pearls' acquisition strategy is effectively scaling the top line. Investors should monitor whether this growth remains durable as the company faces larger integration hurdles and potential saturation in its core North American market.
As reported in the quarterly income statements, Descartes maintained a gross margin of 68.6% in 2027Q1, demonstrating significant pricing power and operational efficiency that appears to buffer the firm against the inherent cyclicality of global trade volumes and the costs associated with frequent business acquisitions.
The fluctuation in gross margins observed in previous periods suggests that acquisition-related accounting adjustments can temporarily distort performance metrics. However, the underlying trend indicates a robust ability to pass through costs, likely due to the mission-critical nature of their regulatory compliance and customs filing software.
Based on the reported figures, Descartes has successfully scaled its operating income to $65.0 million in 2027Q1, representing an operating margin of 33.3%, which suggests that the company is effectively leveraging its fixed network infrastructure to drive profitability faster than its incremental revenue growth.
The consistent expansion of operating margins implies that management is maintaining strict discipline over SG&A expenses even as they expand their functional footprint. This operational leverage is a key indicator of the scalability inherent in their software-as-a-service model, provided that R&D investments continue to yield high-value modules.
Data from recent filings indicates that Descartes has effectively eliminated stock-based compensation as of 2027Q1, a notable shift that enhances the quality of reported net income and suggests a management focus on shareholder value preservation rather than aggressive equity-based incentive structures for employees.
The absence of stock-based compensation in recent quarters is a positive signal for earnings quality, as it removes a common non-cash expense that often obscures true profitability in software firms. This discipline warrants further investigation into how the company continues to attract and retain top-tier technical talent.
While the company shows strong performance, the reliance on frequent acquisitions, as evidenced by the historical income statement data, creates a potential risk of operational silos and integration fatigue that could eventually impair the long-term organic growth trajectory of the core Global Logistics Network platform.
Short-sellers might focus on the potential for 'acquisition fatigue' where the complexity of managing disparate systems outweighs the synergies gained from new modules. Investors should remain cautious regarding whether the company can maintain its current margin profile if future acquisitions require significantly higher R&D or integration costs.
Quick answers to the most common questions about buying DSGX stock.
For fiscal year 2026, The Descartes Systems Group Inc. (DSGX) reported total revenue of $745.0M. This represents a 3533.2% increase compared to $20.5M in 1997.
The Descartes Systems Group Inc. (DSGX) is profitable, generating $167.4M in net income for the fiscal year ending 2026 with a net profit margin of 22.5%.
The Descartes Systems Group Inc. (DSGX) reported an operating income of $240.6M, resulting in an operating profit margin of 32.3%. This margin reflects the operational efficiency of the business before interest and taxes.
The Descartes Systems Group Inc. (DSGX) generated $491.3M in gross profit for the year, representing a gross profit margin of 65.9%. This demonstrates the company's core pricing power and production efficiency.