Canada's Descartes Systems Q1 revenue rises on services growth

Descartes Systems group

03/06/2026 22:13

Overview
Canada logistics software firm's fiscal Q1 revenue up 15% yr/yr, slightly beating analyst expectations
Adjusted EBITDA for fiscal Q1 beat analyst expectations
Company repurchased and cancelled 305,000 shares for $20.8 mln in Q1

Outlook
Descartes did not provide specific guidance for future quarters or the full year

Result Drivers
SERVICES REVENUE - Growth in services revenue accounted for most of the increase, rising 15% yr/yr to $180.5 mln
CUSTOMER DEMAND - Co said shippers, carriers and logistics providers continued to rely on its Global Logistics Network and AI-powered solutions amid challenging trade conditions, per CEO Edward J. Ryan
ACQUISITION IMPACT - Co completed acquisition of Idelic, expanding offerings in AI-powered driver safety and performance management solutions

Company press release: ID:nGNX4bMTzz

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$193.60 mln
$192.40 mln (6 Analysts)
Q1 EPS
 
$0.55
 
Q1 Net Income
 
$48.50 mln
 
Q1 Adjusted EBITDA
Beat
$89.80 mln
$87.40 mln (7 Analysts)
Q1 Gross Margin
 
78%
 
Q1 Operating Income
 
$62.50 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 30 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)