Descartes Systems/$DSGX

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About Descartes Systems

Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. Its core product is the Global Logistics Network, which is best understood as transaction-driven. Descartes charges clients to send/receive messages, data, and documents on the GLN. Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.

Ticker

$DSGX

Sector

Software & Cloud Services
Primary listing

Employees

1,356

Headquarters

Waterloo, Canada

DSGX Metrics

BasicAdvanced
$7.1B
49.02
$1.69
0.51
-

What the Analysts think about DSGX

Analyst ratings (Buy, Hold, Sell) for Descartes Systems stock.

Bulls say / Bears say

Descartes posted Q1 FY26 revenues of $168.7 million, up 12% year-over-year, driven by a 14% increase in subscription services revenue, highlighting strong demand for its Global Logistics Network platform.
Adjusted EBITDA for Q1 FY26 rose 12% to $75.1 million, and the adjusted EBITDA margin reached 45%, demonstrating the company’s operational leverage in its SaaS business model.
TD Cowen reiterated a Buy rating on DSGX on October 3, 2025 with a $98.80 price target, suggesting 5.2% potential upside and showing ongoing analyst confidence in Descartes’ growth outlook.
Operating cash flow dropped 16% to $53.6 million in Q1 FY26 from $63.7 million a year ago, raising concerns about cash conversion efficiency as costs increase.
Descartes announced a 7% reduction in its global workforce, incurring $4 million in restructuring charges for Q2 FY26, which points to margin pressures and possible risks to execution.
DSGX shares have fallen 15.2% year-to-date and are trading near their 52-week low of $92.00, reflecting market doubts about the company's near-term growth.
Data summarised monthly by Lightyear AI. Last updated on 10 Nov 2025.

DSGX Financial Performance

Revenues and expenses
QuarterlyAnnual
Q3 24
QoQ growth
Revenue
$37B
-39.75%
Net income
$45B
107.52%
Profit margin
37.65%
6.78%

DSGX Earnings Performance

Company profitability
QuarterlyAnnual
Q4 23
Q1 24
Q2 24
Q3 24
Q4 24
Actual
$3.69
$2.85
$2.45
$2.42
-
Expected
$3.55
$2.61
$2.05
$2.31
$3.94
Surprise
3.94%
9.20%
19.51%
4.63%
-
Data displayed above is indicative only and its accuracy or completeness is not guaranteed. Actual execution price may vary. Past performance is not indicative of future results. Your return may be affected by currency fluctuations and applicable fees and charges. Capital at risk.
Real-time US market data is sourced from the IEX order book provided by Polygon. After-hours US market data is 15 minutes delayed and may differ significantly from the actual tradable price at market open.

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