Descartes Systems (DSGX)
Market Price (11/10/2026): $94.78 | Market Cap: $8.1 BilSector: Information Technology | Industry: Application Software
Descartes Systems (DSGX)
Market Price (11/10/2026): $94.78Market Cap: $8.1 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 32% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 39%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 39% Low stock price volatilityVol 12M is 41% Megatrend and thematic driversMegatrends include Cloud Computing, Future of Freight, and E-commerce & DTC Adoption. Themes include Software as a Service (SaaS), Show more. | Trading close to highsDist 52W High is -0.2% Weak multi-year price returns2Y Excs Rtn is -41%, 3Y Excs Rtn is -41% | Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.4% Key risksDSGX key risks include [1] high revenue concentration in Europe and North America, Show more. |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 32% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 39%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 39% |
| Low stock price volatilityVol 12M is 41% |
| Megatrend and thematic driversMegatrends include Cloud Computing, Future of Freight, and E-commerce & DTC Adoption. Themes include Software as a Service (SaaS), Show more. |
| Trading close to highsDist 52W High is -0.2% |
| Weak multi-year price returns2Y Excs Rtn is -41%, 3Y Excs Rtn is -41% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.4% |
| Key risksDSGX key risks include [1] high revenue concentration in Europe and North America, Show more. |
Qualitative Assessment
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Descartes Systems (DSGX) stock has gained about 25% since 7/31/2026 because of the following key factors:
1. Strong Fiscal Q2 2027 Financial Performance Exceeded Revenue Expectations.
Descartes Systems Group (DSGX) reported robust financial results for its fiscal Q2 2027, which ended July 31, 2026. The company announced record quarterly revenue of $201.1 million, an increase of 12% year-over-year and 4% sequentially, surpassing analysts' consensus estimates of $197.54 million. Diluted earnings per share (EPS) of $0.57 met analyst expectations, representing a 33% increase from the prior year's fiscal Q2. Additionally, net income rose 32% to $50.0 million, and Adjusted EBITDA increased 18% year-over-year to $94.4 million, with the margin improving to 47% from 45%.
2. Strategic Acquisitions Expanded Market Presence and Solution Offerings.
During and immediately following fiscal Q2 2027, Descartes Systems Group strategically deployed cash for significant acquisitions aimed at bolstering its market position. The company acquired Extensiv for approximately $120 million, enhancing its warehouse management and fulfillment solutions, particularly for third-party logistics providers and e-commerce brands. Additionally, Descartes acquired Transportation Applied Intelligence Software, LLC (TAI) for approximately $99.3 million, a move that strengthened its advanced transportation management solutions for freight brokers. These acquisitions, totaling nearly $220 million, were entirely funded from cash on hand, demonstrating the company's strong financial position with a cash balance of $401.1 million at July 31, 2026.
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Descartes Systems (DSGX) stock has gained about 25% since 7/31/2026 because of the following key factors:
1. Strong Fiscal Q2 2027 Financial Performance Exceeded Revenue Expectations.
Descartes Systems Group (DSGX) reported robust financial results for its fiscal Q2 2027, which ended July 31, 2026. The company announced record quarterly revenue of $201.1 million, an increase of 12% year-over-year and 4% sequentially, surpassing analysts' consensus estimates of $197.54 million. Diluted earnings per share (EPS) of $0.57 met analyst expectations, representing a 33% increase from the prior year's fiscal Q2. Additionally, net income rose 32% to $50.0 million, and Adjusted EBITDA increased 18% year-over-year to $94.4 million, with the margin improving to 47% from 45%.
2. Strategic Acquisitions Expanded Market Presence and Solution Offerings.
During and immediately following fiscal Q2 2027, Descartes Systems Group strategically deployed cash for significant acquisitions aimed at bolstering its market position. The company acquired Extensiv for approximately $120 million, enhancing its warehouse management and fulfillment solutions, particularly for third-party logistics providers and e-commerce brands. Additionally, Descartes acquired Transportation Applied Intelligence Software, LLC (TAI) for approximately $99.3 million, a move that strengthened its advanced transportation management solutions for freight brokers. These acquisitions, totaling nearly $220 million, were entirely funded from cash on hand, demonstrating the company's strong financial position with a cash balance of $401.1 million at July 31, 2026.
3. Positive Analyst Sentiment and Increased Price Targets.
Following the strong fiscal Q2 2027 results and strategic acquisitions, analyst sentiment remained largely positive, contributing to the stock's upward trend. Analysts maintained a "Moderate Buy" consensus rating for DSGX. Several firms revised their price targets upwards during the period. For instance, Scotiabank raised its price target to $98.00 from $95.00 on September 11, 2026, and BMO Capital Markets increased its target from $82.00 to $90.00 on October 13, 2026. The average 12-month consensus price target among analysts ranged from $100.33 to $102.62.
4. Ongoing Share Repurchase Program Enhanced Shareholder Value.
Descartes Systems Group actively repurchased its common shares under its Normal Course Issuer Bid (NCIB), signaling confidence in its valuation and contributing to shareholder returns. In fiscal Q2 2027, the company repurchased and cancelled 346,800 common shares at an aggregate cost of $24.3 million. For the first half of fiscal 2027, the total amount spent on share repurchases and cancellations reached $45.1 million for 651,800 shares. The NCIB authorizes the repurchase of up to approximately 8.6 million shares through December 10, 2026.
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Stock Movement Drivers
Fundamental Drivers
The 26.0% change in DSGX stock from 7/31/2026 to 11/9/2026 was primarily driven by a 17.5% change in the company's P/E Multiple.| (LTM values as of) | 7312026 | 11092026 | Change |
|---|---|---|---|
| Stock Price ($) | 75.16 | 94.70 | 26.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 754 | 775 | 2.8% |
| Net Income Margin (%) | 23.3% | 24.3% | 3.9% |
| P/E Multiple | 36.7 | 43.2 | 17.5% |
| Shares Outstanding (Mil) | 86 | 86 | 0.4% |
| Cumulative Contribution | 26.0% |
Market Drivers
7/31/2026 to 11/9/2026| Return | Correlation | |
|---|---|---|
| DSGX | 26.0% | |
| Market (SPY) | 0.8% | 25.9% |
| Sector (XLK) | -2.5% | 5.9% |
Fundamental Drivers
The 31.3% change in DSGX stock from 4/30/2026 to 11/9/2026 was primarily driven by a 14.0% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 11092026 | Change |
|---|---|---|---|
| Stock Price ($) | 72.11 | 94.70 | 31.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 729 | 775 | 6.3% |
| Net Income Margin (%) | 22.5% | 24.3% | 8.0% |
| P/E Multiple | 37.9 | 43.2 | 14.0% |
| Shares Outstanding (Mil) | 86 | 86 | 0.4% |
| Cumulative Contribution | 31.3% |
Market Drivers
4/30/2026 to 11/9/2026| Return | Correlation | |
|---|---|---|
| DSGX | 31.3% | |
| Market (SPY) | 5.0% | 8.2% |
| Sector (XLK) | 7.3% | -11.7% |
Fundamental Drivers
The 7.4% change in DSGX stock from 10/31/2025 to 11/9/2026 was primarily driven by a 13.2% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 10312025 | 11092026 | Change |
|---|---|---|---|
| Stock Price ($) | 88.21 | 94.70 | 7.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 685 | 775 | 13.2% |
| Net Income Margin (%) | 21.6% | 24.3% | 12.1% |
| P/E Multiple | 51.1 | 43.2 | -15.5% |
| Shares Outstanding (Mil) | 86 | 86 | 0.2% |
| Cumulative Contribution | 7.4% |
Market Drivers
10/31/2025 to 11/9/2026| Return | Correlation | |
|---|---|---|
| DSGX | 7.4% | |
| Market (SPY) | 11.3% | 10.8% |
| Sector (XLK) | 14.1% | 1.1% |
Fundamental Drivers
The 31.1% change in DSGX stock from 10/31/2023 to 11/9/2026 was primarily driven by a 47.2% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 10312023 | 11092026 | Change |
|---|---|---|---|
| Stock Price ($) | 72.21 | 94.70 | 31.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 527 | 775 | 47.2% |
| Net Income Margin (%) | 21.6% | 24.3% | 12.3% |
| P/E Multiple | 54.0 | 43.2 | -20.1% |
| Shares Outstanding (Mil) | 85 | 86 | -0.7% |
| Cumulative Contribution | 31.1% |
Market Drivers
10/31/2023 to 11/9/2026| Return | Correlation | |
|---|---|---|
| DSGX | 31.1% | |
| Market (SPY) | 86.2% | 37.9% |
| Sector (XLK) | 112.1% | 29.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| DSGX Return | 41% | -16% | 21% | 35% | -23% | 8% | 62% |
| Peers Return | 9% | -29% | 34% | -8% | -37% | 7% | -35% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 96% |
Monthly Win Rates [3] | |||||||
| DSGX Win Rate | 75% | 58% | 50% | 67% | 42% | 73% | |
| Peers Win Rate | 50% | 40% | 60% | 48% | 42% | 50% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 36% | |
Max Drawdowns [4] | |||||||
| DSGX Max Drawdown | -16% | -31% | -15% | -10% | -35% | -29% | |
| Peers Max Drawdown | -29% | -45% | -28% | -37% | -51% | -42% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: MANH, SPSC, BL, FIVN.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 11/9/2026 (YTD)
How Low Can It Go
| Event | DSGX | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -17.9% | -18.8% |
| % Gain to Breakeven | 21.9% | 23.1% |
| Time to Breakeven | 45 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -12.0% | -9.5% |
| % Gain to Breakeven | 13.7% | 10.5% |
| Time to Breakeven | 18 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -29.9% | -24.5% |
| % Gain to Breakeven | 42.6% | 32.4% |
| Time to Breakeven | 340 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -37.0% | -33.7% |
| % Gain to Breakeven | 58.7% | 50.9% |
| Time to Breakeven | 72 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.0% | -19.2% |
| % Gain to Breakeven | 29.9% | 23.8% |
| Time to Breakeven | 42 days | 105 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -17.6% | -17.9% |
| % Gain to Breakeven | 21.4% | 21.8% |
| Time to Breakeven | 32 days | 123 days |
In The Past
Descartes Systems's stock fell -17.9% during the 2025 US Tariff Shock. Such a loss loss requires a 21.9% gain to breakeven.
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| Event | DSGX | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -29.9% | -24.5% |
| % Gain to Breakeven | 42.6% | 32.4% |
| Time to Breakeven | 340 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -37.0% | -33.7% |
| % Gain to Breakeven | 58.7% | 50.9% |
| Time to Breakeven | 72 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.0% | -19.2% |
| % Gain to Breakeven | 29.9% | 23.8% |
| Time to Breakeven | 42 days | 105 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -48.2% | -53.4% |
| % Gain to Breakeven | 92.9% | 114.4% |
| Time to Breakeven | 96 days | 1085 days |
In The Past
Descartes Systems's stock fell -17.9% during the 2025 US Tariff Shock. Such a loss loss requires a 21.9% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Descartes Systems (DSGX)
Descartes Systems Group (DSGX) provides cloud-based logistics and supply chain management solutions aimed at enhancing the productivity, performance, and security of logistics-intensive businesses globally. The company operates a comprehensive Logistics Technology platform, which serves as the foundation for a suite of modular, interoperable web and wireless applications. This platform creates a connected community of logistics stakeholders, enabling them to transact business more efficiently and streamline complex supply chain operations.
The company's core offerings include a diverse range of software-as-a-service (SaaS) and data solutions. These encompass routing, mobile management, and telematics; transportation management and e-commerce enablement; customs and regulatory compliance; global trade data access and analysis; and specialized global logistics network services. Descartes also provides enterprise systems tailored for brokers and freight forwarders, alongside cloud-based e-commerce warehouse management solutions. Through these services, customers can effectively route, schedule, track, and measure delivery resources; plan, allocate, and execute shipments; manage transportation invoices; and fulfill customs and security documentation requirements for international trade.
Descartes primarily targets a wide array of businesses that depend heavily on efficient logistics. Its main customers include transportation providers, logistics service providers, and distribution-intensive companies. Additionally, the company serves manufacturers, retailers, distributors, and mobile business service providers, helping them optimize critical aspects of their supply chains, from first mile to last mile delivery and regulatory adherence.
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Here are a few brief analogies for Descartes Systems (DSGX):
- Salesforce for logistics: Descartes provides cloud-based software-as-a-service (SaaS) that helps businesses manage their logistics and supply chain operations, similar to how Salesforce helps manage customer relationships.
- A specialized SAP for global supply chain management: While SAP offers broad enterprise resource planning, Descartes focuses specifically and comprehensively on the complex, global aspects of supply chain management, from routing to customs.
- Bloomberg for global trade data and customs compliance: Descartes offers extensive trade data, tariff calculations, and tools for filing customs and security documents, much like Bloomberg provides specialized data and tools for financial markets.
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- Logistics Technology Platform: A modular, cloud-based platform offering web and wireless logistics management applications.
- Routing, Mobile & Telematics: Solutions for planning, scheduling, tracking, and measuring delivery resources.
- Transportation Management: Services for planning, allocating, and executing shipments, including rating, auditing, and paying transportation invoices.
- Customs & Regulatory Compliance: Solutions for filing customs and security documents, and performing trade tariff and duty calculations.
- Trade Data: Provides access to and analysis of global trade information.
- Global Logistics Network Services: Connects logistics-focused parties to facilitate business transactions and information exchange.
- Broker & Forwarder Enterprise Systems: Specialized enterprise systems tailored for freight brokers and forwarders.
- E-commerce Warehouse Management: Cloud-based solutions for managing warehouse operations specifically for e-commerce.
- Professional Services: Includes consulting, implementation, training, maintenance, and support for their logistics and supply chain solutions.
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Edward J. Ryan, Chief Executive Officer
Edward J. Ryan has served as Chief Executive Officer of Descartes Systems Group since November 2013. He joined Descartes in February 2000 through the company's acquisition of E-Transport, where he had led commercial operations and contributed to growing the business from its early startup days to a successful ocean network. Mr. Ryan brings over 30 years of experience in supply chain and logistics technology. Prior to his CEO role, he held senior positions at Descartes, including Chief Commercial Officer and Executive Vice President of Global Field Operations. He holds a Bachelor of Arts degree from Franklin & Marshall College.
Edward Gardner, Chief Financial Officer
Edward Gardner is anticipated to succeed Allan Brett as Descartes' Chief Financial Officer in March 2026, following Descartes' filing of its annual financial statements for its 2026 fiscal year. He is currently Executive Vice President, Corporate Development, and has worked with CEO Edward J. Ryan for more than 20 years. Mr. Gardner has broad experience in investor relations, corporate development, financial analysis, and corporate finance, with prior experience at Descartes and EY.
Allan Brett, Senior Advisor, Executive Team
Allan Brett served as Chief Financial Officer for Descartes Systems Group for 12 years, joining in May 2014, and is transitioning to a senior advisory role to the executive team in March 2026 as he moves towards retirement. Prior to joining Descartes, he was the CFO of Aastra Technologies Limited from June 1996 until its sale to Mitel Networks Corporation in January 2014. During his 18-year tenure at Aastra, the company achieved significant growth in revenues and employees with over 60 consecutive quarters of profitability. He holds an undergraduate degree from the University of Waterloo.
J. Scott Pagan, President and Chief Operating Officer
As President and Chief Operating Officer, J. Scott Pagan oversees Descartes' operations, encompassing research and development, Global Logistics Network service delivery, implementation, corporate development initiatives, corporate communication strategies, and legal and administrative functions. He previously held the roles of Chief Corporate Officer and Corporate Secretary for the company. Mr. Pagan joined Descartes in May 2000, having previously worked in private law practice in Southern Ontario, where he specialized in corporate and intellectual property law.
Scott Sangster, General Manager, Global Logistics Service Providers
Scott Sangster has extensive experience in the logistics and technology sectors, spanning over three decades. He has served as General Manager of Global Logistics Service Providers at Descartes Systems Group since December 2000. His roles at Descartes have included Vice President of Global Sales and Vice President of GLN. Before joining Descartes, Mr. Sangster was the Director of Network Connectivity at Emergis Inc from October 1990 to 2000.
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The key risks to Descartes Systems Group Inc. (DSGX) include volatility in global trade and geopolitical factors, risks associated with acquisitions and their integration, and significant cybersecurity threats.
Key Risks
- Customer/Trade Volatility and Geopolitical Risks: Descartes Systems Group's business is highly susceptible to global trade disruptions, tariffs, and geopolitical instability. A sustained slowdown in shipping volumes or shifts in trade policies can directly reduce transaction volumes and services revenue growth. Recent events have shown that the company's clients face forecasting, pricing, planning, and execution challenges due to an uncertain tariff landscape and a rapidly changing geopolitical environment.
- Acquisition and Integration Risk: A significant part of Descartes' growth strategy relies on strategic acquisitions. There is an inherent risk that the company may not successfully integrate acquired businesses, or that the integration process could take longer than anticipated. This can lead to unexpected costs, operational inefficiencies, or a failure to realize the expected margin synergies and business benefits, potentially diluting overall performance.
- Cybersecurity Risks: As a provider of cloud-based logistics and supply chain management solutions, Descartes Systems Group faces substantial cybersecurity risks. A successful cyberattack could lead to significant operational disruptions, data breaches, regulatory penalties, financial losses, and severe damage to its reputation and customer trust. The interconnected nature of global supply chains and reliance on various partners further amplifies the potential impact of such threats.
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The proliferation of open, decentralized logistics networks and data exchange platforms built on blockchain or distributed ledger technology (DLT) represents an emerging threat. Descartes Systems' business model relies on providing a centralized platform that "unites a community of logistics-focused parties" and offers "global logistics network services" and "trade data." DLT-based networks aim to create transparent, immutable, and trustless systems for tracking goods, managing documentation, and facilitating transactions across the supply chain without a central intermediary. If these open, decentralized networks gain widespread adoption and become the standard for supply chain data exchange and transaction processing, they could reduce the reliance on proprietary, centralized platforms like Descartes Systems, potentially disintermediating its role in facilitating business and providing authenticated data within a closed network.
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Descartes Systems Group Inc. (DSGX) operates within several significant addressable markets related to logistics and supply chain management. The market sizes for their main products and services vary, with many showing substantial global growth:
- Cloud-based Logistics and Supply Chain Management Solutions: The global cloud logistics market was valued at USD 24.93 billion in 2025 and is projected to grow to USD 81.73 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 14.1% during the forecast period. Similarly, the global cloud supply chain management market is expected to grow from USD 11.95 billion in 2025 to USD 30.56 billion by 2031, with a CAGR of 16.95% over 2026-2031. North America held the largest share in the cloud logistics market in 2024.
- Routing, Mobile, and Telematics: The global route optimization software market was valued at USD 10.74 billion in 2024 and is projected to reach USD 37.57 billion by 2033, demonstrating a CAGR of 14.18% during 2025-2033. North America currently dominates this market, holding approximately 29.8% in 2024. The global fleet telematics market was projected at approximately USD 11.2 billion in 2023, with an anticipated rise to about USD 26.9 billion by 2032.
- Transportation Management Systems (TMS) and E-commerce Enablement: The global transportation management system market was valued at USD 16.8 billion in 2025 and is projected to reach USD 48.8 billion by 2035, expanding at a CAGR of 11.2% during 2026-2035. North America is expected to account for 39% of the global market share by 2035. The global e-commerce logistics market size was valued at USD 500.76 billion in 2024 and is projected to grow at a CAGR of 22.3% from 2025 to 2034. The U.S. e-commerce logistics market was valued at USD 186.94 billion in 2025.
- Customs and Regulatory Compliance: The global trade compliance software market generated USD 528.4 million in 2025 and is predicted to grow to approximately USD 1,541.4 million by 2035, recording a CAGR of 11.30%. In 2025, North America held a dominant market position, capturing over a 36.5% share. For the broader regulatory compliance management software market, the size was USD 27,800 million in 2024 and is anticipated to reach USD 68,832 million by 2032, at a CAGR of 12%. North America leads this market with a 38% share.
- Trade Data: The global merchandise trade totaled USD 33 trillion in 2024. International trade in goods and services worldwide reached €24.4 trillion (approximately USD 26.5 trillion based on current exchange rates) in 2024. This vast volume of global trade underpins the addressable market for trade data solutions.
- Global Logistics Network Services: The global logistics network market size was valued at USD 38.96 billion in 2024 and is expected to reach USD 115.11 billion by 2032, at a CAGR of 14.5% during the forecast period. The global logistics market as a whole was valued at USD 9.41 trillion in 2023 and is projected to reach USD 14.39 trillion by 2029. The United States represented the largest logistics market, at USD 2.58 trillion in 2024.
- Broker and Forwarder Enterprise Systems (including Warehouse Management Solutions): The global warehouse management system (WMS) market is projected to grow from USD 4.57 billion in 2025 to USD 10.04 billion by 2030, registering a CAGR of 17.1%. Another estimate indicates the global WMS market size was USD 5.67 billion in 2025 and is predicted to increase to approximately USD 30.50 billion by 2035, expanding at a CAGR of 18.32%. North America dominated the WMS market with a 35.55% share in 2025.
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Descartes Systems Group (DSGX) is expected to experience future revenue growth over the next 2-3 years driven by several key factors:
- Strategic Acquisitions: Descartes has a disciplined acquisition strategy, focusing on complementary technologies and industry consolidation, which is a core element of its growth model. Recent acquisitions, such as 3G (transportation management), Sellercloud (e-commerce capabilities), and OCR (customs and regulatory compliance), are anticipated to continue contributing to revenue growth by expanding the company's offerings and market reach.
- Organic Growth from Expanded Customer Base and Solutions: The company consistently reports growth in revenue from both new and existing customers leveraging its current solutions. Analysts project an optimistic organic growth rate, supported by resilient global logistics and supply chain spending.
- Increasing Demand for Supply Chain Management (SCM) and Global Logistics Network (GLN) Solutions: The broader supply chain management market is experiencing robust growth due to heightened awareness of SCM benefits, improved forecasting accuracy, and the increasing complexity of global supply chains. Descartes' Global Logistics Network (GLN) is well-positioned to meet these evolving demands.
- Growth in E-commerce Enablement Solutions: With the continued expansion of e-commerce, there is a strong demand for solutions that streamline listing and inventory management, warehouse automation, and global shipping. Descartes' comprehensive suite of e-commerce solutions, including those enhanced through recent acquisitions, directly addresses these needs for brands and third-party logistics providers.
- Heightened Need for Global Trade Intelligence and Compliance: In an increasingly complex global trade environment, including potential shifts in tariff and trade policies, businesses are relying more on solutions that provide global trade intelligence, import classification, export compliance, and duty and tariff data. Descartes' offerings in this area help customers navigate these complexities and optimize their trade operations.
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Share Repurchases
- Descartes Systems Group initiated a Normal Course Issuer Bid (NCIB) approved by the Toronto Stock Exchange on December 9, 2025. Under this program, the company is authorized to repurchase up to 8,568,582 common shares, representing approximately 10% of its public float.
- The buyback period commenced on December 11, 2025, and is set to run until December 10, 2026, or until the completion of purchases.
- As of January 31, 2026, the company had repurchased and cancelled 10,500 common shares under the NCIB for an aggregate cost of $0.9 million (CAD 1.2 million).
Share Issuance
- The net dollar increase in stock outstanding was approximately $6.7 million over the trailing twelve months as of November 2025.
- Net total equity issued/repurchased reflected a net issuance of $12 million in fiscal year 2025, $9 million in 2024, and $2 million in 2023.
- The number of shares outstanding for Descartes Systems Group showed slight annual increases of 0.58% in 2025, 0.42% in 2024, and 0.29% in 2023.
Inbound Investments
- Quadrature Capital Ltd acquired a new stake of 165,700 shares in The Descartes Systems Group, valued at approximately $15.6 million, in March 2026.
- Institutional investors and hedge funds collectively own 77.73% of the company's stock.
Outbound Investments
- Descartes acquired Finale Inventory, a U.S.-based provider of cloud-based inventory management solutions, for approximately US $40 million (up-front consideration) in August 2025, with potential additional performance-based consideration of up to US $15 million.
- In March 2025, Descartes acquired 3GTMS, a cloud-based transportation management system provider, for $115 million.
- Notable acquisitions in 2024 included Sellercloud for approximately $110 million (December 2024), BoxTop Technologies Limited for $13 million (June 2024), Aerospace Software Developments (ASD) for $61 million (April 2024), and OCR Services, Inc., for $90 million (March 2024).
Capital Expenditures
- Capital expenditures were minimal, amounting to $5.73 million (negative value for cash flow from investing) in the last 12 months as of March 2026.
- For fiscal year 2025, capital additions were $1.9 million in the first quarter, with an expectation of $4 million to $5 million for the remainder of the year.
- Over the trailing twelve months leading up to November 2025, capital expenditures totaled only $6.5 million.
Peer Outperformance in Application Software
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| DSGX | Descartes Systems | 13.8% | 43.2x | 12.3% | 21.8% | 8.9% | — |
| AGYS | Agilysys | 16.6% | 78.6x | -1.7% | 42.8% | 140.6% | +132pp |
| CDNS | Cadence Design Systems | 16.1% | 66.7x | 3.5% | 28.7% | 84.5% | +76pp |
| PTC | PTC | 12.9% | 18.4x | 11.2% | 29.2% | 60.1% | +51pp |
| INTA | Intapp | 17.2% | -120.5x | 16.7% | 15.0% | 51.4% | +43pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 10 | 15.6% | 110.8% | 187.8% | FLEX 499% · TTMI 428% · JBL 303% |
| Technology Distributors | 9 | 50.7% | 59.2% | 59.9% | AVT 146% · SNX 118% · CNXN 77% |
| Semiconductor Materials & Equipment | 28 | 39.5% | 48.2% | 43.1% | AXTI 370% · KLAC 281% · LRCX 274% |
| Communications Equipment | 36 | 10.5% | 99.8% | 38.1% | AAOI 806% · LITE 546% · ANET 461% |
| Electronic Components | 24 | 20.6% | 78.5% | 33.8% | CLS 1838% · BELFA 1082% · APH 310% |
| Electronic Equipment & Instruments | 27 | -5.1% | 32.8% | -0.4% | PI 129% · OSIS 112% · MIR 70% |
| Semiconductors | 55 | 12.1% | 44.0% | -5.3% | MU 893% · AVGO 526% · NVDA 485% |
| Technology Hardware, Storage & Peripherals | 21 | 13.0% | 88.7% | -8.8% | WDC 592% · DELL 581% · SMCI 538% |
| IT Consulting & Other Services | 30 | -17.7% | -7.7% | -25.2% | APLD 293% · IBM 142% · GIB -10% |
| Internet Services & Infrastructure | 6 | -9.8% | 38.8% | -29.7% | GDDY 56% · VRSN 33% · AKAM -27% |
| Systems Software | 70 | -7.3% | 17.7% | -52.9% | ZETA 227% · CRWD 212% · CVLT 145% |
| Application Software ← | 126 | -11.5% | -11.7% | -55.7% | PLTR 598% · FROG 180% · AGYS 141% |
Latest Trefis Analyses
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 80.67 |
| Mkt Cap | 2.9 |
| Rev LTM | 780 |
| Op Inc LTM | 131 |
| FCF LTM | 203 |
| FCF 3Y Avg | 161 |
| CFO LTM | 248 |
| CFO 3Y Avg | 190 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.9% |
| Rev Chg 3Y Avg | 12.2% |
| Rev Chg Q | 11.0% |
| QoQ Delta Rev Chg LTM | 2.7% |
| Op Inc Chg LTM | 24.4% |
| Op Inc Chg 3Y Avg | 21.3% |
| Op Mgn LTM | 16.8% |
| Op Mgn 3Y Avg | 15.3% |
| QoQ Delta Op Mgn LTM | 0.9% |
| CFO/Rev LTM | 29.7% |
| CFO/Rev 3Y Avg | 27.2% |
| FCF/Rev LTM | 26.0% |
| FCF/Rev 3Y Avg | 22.6% |
Segment Financials
Revenue by Segment| $ Mil | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Logistics technology solutions | 729 | 651 | 573 | 486 | |
| License | 5 | ||||
| Professional services and other | 41 | ||||
| Services | 378 | ||||
| Total | 729 | 651 | 573 | 486 | 425 |
| $ Mil | 2026 | 2025 | 2024 |
|---|---|---|---|
| Logistics technology solutions | 210 | 181 | 143 |
| Total | 210 | 181 | 143 |
| $ Mil | 2026 | 2025 | 2024 | 2023 |
|---|---|---|---|---|
| Logistics technology solutions | 164 | 143 | 116 | 102 |
| Total | 164 | 143 | 116 | 102 |
Price Behavior
| Market Price | $94.70 | |
| Market Cap ($ Bil) | 8.1 | |
| First Trading Date | 01/27/1999 | |
| Distance from 52W High | -0.2% | |
| 50 Days | 200 Days | |
| DMA Price | $84.04 | $74.99 |
| DMA Trend | up | indeterminate |
| Distance from DMA | 12.7% | 26.3% |
| 3M | 1YR | |
| Volatility | 34.2% | 40.8% |
| Downside Capture | 8.23 | 57.66 |
| Upside Capture | 115.05 | 64.63 |
| Correlation (S&P 500) | 23.0% | 10.2% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.32 | 0.89 | 0.92 | 0.22 | 0.33 | 0.82 |
| Up Beta | -4.68 | 1.73 | 1.22 | -0.91 | -0.74 | 0.70 |
| Down Beta | 1.36 | 0.57 | 0.57 | 0.60 | 0.46 | 0.76 |
| Up Capture | 119% | 136% | 141% | 59% | 51% | 65% |
| Bmk +ve Days | 12 | 18 | 28 | 62 | 130 | 427 |
| Stock +ve Days | 14 | 23 | 35 | 61 | 119 | 392 |
| Down Capture | -68% | 29% | 36% | 14% | 76% | 100% |
| Bmk -ve Days | 10 | 25 | 36 | 64 | 121 | 325 |
| Stock -ve Days | 8 | 20 | 28 | 64 | 131 | 357 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DSGX | |
|---|---|---|---|---|
| DSGX | 13.0% | 40.8% | 0.39 | - |
| Sector ETF (XLK) | 18.7% | 28.5% | 0.59 | -0.2% |
| Equity (SPY) | 13.3% | 13.7% | 0.65 | 9.6% |
| Gold (GLD) | 3.7% | 28.8% | 0.12 | -10.7% |
| Commodities (DBC) | 38.2% | 21.3% | 1.42 | -14.3% |
| Real Estate (VNQ) | 13.7% | 14.3% | 0.65 | 16.7% |
| Bitcoin (BTCUSD) | -25.3% | 43.6% | -0.55 | 8.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DSGX | |
|---|---|---|---|---|
| DSGX | 2.7% | 31.8% | 0.12 | - |
| Sector ETF (XLK) | 17.1% | 26.5% | 0.58 | 43.4% |
| Equity (SPY) | 11.8% | 17.3% | 0.51 | 47.9% |
| Gold (GLD) | 17.8% | 19.1% | 0.75 | 2.5% |
| Commodities (DBC) | 8.0% | 19.6% | 0.29 | 1.3% |
| Real Estate (VNQ) | 1.5% | 18.9% | -0.03 | 35.3% |
| Bitcoin (BTCUSD) | 4.4% | 51.6% | 0.27 | 24.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DSGX | |
|---|---|---|---|---|
| DSGX | 16.2% | 30.1% | 0.55 | - |
| Sector ETF (XLK) | 23.1% | 25.3% | 0.83 | 50.3% |
| Equity (SPY) | 15.3% | 18.0% | 0.72 | 50.4% |
| Gold (GLD) | 12.1% | 16.5% | 0.60 | 5.4% |
| Commodities (DBC) | 7.6% | 18.1% | 0.33 | 12.1% |
| Real Estate (VNQ) | 6.1% | 20.7% | 0.25 | 35.8% |
| Bitcoin (BTCUSD) | 60.0% | 66.3% | 1.00 | 16.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/3/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 0 |
| # Negative | 0 | 0 | 0 |
| Median Positive | |||
| Median Negative | |||
| Max Positive | |||
| Max Negative | |||
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 0 |
| # Negative | 0 | 0 | 0 |
| Median Positive | |||
| Median Negative | |||
| Max Positive | |||
| Max Negative | |||
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 07/31/2026 | 09/11/2026 | 6-K |
| 04/30/2026 | 06/04/2026 | 6-K |
| 01/31/2026 | 03/11/2026 | 40-F |
| 10/31/2025 | 12/04/2025 | 6-K |
| 07/31/2025 | 09/04/2025 | 6-K |
| 04/30/2025 | 06/05/2025 | 6-K |
| 01/31/2025 | 04/22/2025 | 40-F |
| 10/31/2024 | 12/04/2024 | 6-K |
| 07/31/2024 | 09/05/2024 | 6-K |
| 04/30/2024 | 05/30/2024 | 6-K |
| 01/31/2024 | 04/22/2024 | 40-F |
| 10/31/2023 | 12/06/2023 | 6-K |
| 07/31/2023 | 09/07/2023 | 6-K |
| 04/30/2023 | 06/01/2023 | 6-K |
| 01/31/2023 | 03/01/2023 | 6-K |
| 10/31/2022 | 12/08/2022 | 6-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 07/31/2026 | 09/11/2026 | 6-K |
| 04/30/2026 | 06/04/2026 | 6-K |
| 01/31/2026 | 03/11/2026 | 40-F |
| 10/31/2025 | 12/04/2025 | 6-K |
| 07/31/2025 | 09/04/2025 | 6-K |
| 04/30/2025 | 06/05/2025 | 6-K |
| 01/31/2025 | 04/22/2025 | 40-F |
| 10/31/2024 | 12/04/2024 | 6-K |
| 07/31/2024 | 09/05/2024 | 6-K |
| 04/30/2024 | 05/30/2024 | 6-K |
| 01/31/2024 | 04/22/2024 | 40-F |
| 10/31/2023 | 12/06/2023 | 6-K |
| 07/31/2023 | 09/07/2023 | 6-K |
| 04/30/2023 | 06/01/2023 | 6-K |
| 01/31/2023 | 03/01/2023 | 6-K |
| 10/31/2022 | 12/08/2022 | 6-K |
| 07/31/2022 | 09/08/2022 | 6-K |
| 04/30/2022 | 06/02/2022 | 6-K |
| 01/31/2022 | 04/14/2022 | 40-F |
| 10/31/2021 | 12/02/2021 | 6-K |
| 07/31/2021 | 09/09/2021 | 6-K |
| 04/30/2021 | 06/03/2021 | 6-K |
| 01/31/2021 | 04/07/2021 | 40-F |
| 10/31/2020 | 12/03/2020 | 6-K |
| 07/31/2020 | 09/10/2020 | 6-K |
| 04/30/2020 | 05/28/2020 | 6-K |
| 01/31/2020 | 04/14/2020 | 40-F |
| 10/31/2019 | 12/05/2019 | 6-K |
Investor Activity (13F)
Updated Nov 10, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
Descartes Systems — Investor Video Playlist
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Application Software Resources |
| Capterra |
| Software Advice |
| InfoWorld |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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