The Descartes Systems Group Inc. (DSGX) AI Stock Analysis

The Descartes Systems Group Inc. specializes in cloud-based logistics and supply chain management solutions that enhance the efficiency, performance, and security of logistics-intensive businesses globally. Through its Logistics Technology platform, the company provides modular web and wireless applications for routing, mobile and telematics, transportation management, e-commerce enablement, and customs and regulatory compliance. It also offers global logistics network connectivity, trade data services, and enterprise systems for brokers and forwarders. Its software-as-a-service offerings optimize delivery routing, shipment planning, freight auditing, and customs documentation filing.

Revenue expanded from $424.7M in FY2022 to $729.0M in FY2026, posting annual growth of 12.0% in FY2026 alongside a 5-year CAGR of 15.9%. Gross margin finished at 77.1% in FY2026 compared to 76.0% in FY2022. Operating margin rose to 30.2% in FY2026, while net income increased from $86.3M in FY2022 to $163.8M in FY2026. For the trailing twelve months ending July 31, 2026, revenue stood at $775.2M with an operating margin of 33.2% and a profit margin of 24.2%. In the latest quarter, quarterly revenue grew 11.8% year-over-year, while quarterly earnings grew 32.6%.

As of July 31, 2026, the company held $401.1M in cash and short-term investments against total debt of $7.5M, resulting in net cash of $393.6M and a debt-to-equity ratio of 0.00. Its current ratio was 2.02. In FY2026, operating cash flow reached $272.0M, funding free cash flow of $266.2M after capital expenditures of $5.9M. Cash used for share buybacks totaled $911,573 in FY2026, with the 5-year share count change at 0.8%.

At a closing price of $87.05, the company trades at a trailing P/E of 40.5x and a forward P/E of 29.6x, compared to the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its price-to-sales ratio is 9.6x versus the peer median of 2.8x, while EV/EBITDA is 19.0x compared to the peer median of 16.6x. Over the past year, the stock fell 8.5%, trailing the S&P 500 return of 16.8%. Over five years, its return of 4.5% trailed the S&P 500 return of 83.0%.

Wall Street analyst ratings include 7 Strong Buy, 6 Buy, and 1 Hold, with zero Sell or Strong Sell recommendations. The mean price target is $102.62, representing a 17.9% premium over the last close of $87.05. For the current fiscal year ending January 31, 2027, consensus estimates anticipate revenue of $830.7M and EPS of $2.82, representing an EPS decline of 1.1%. Over the last 4 quarters, the company posted 0 EPS beats. The next earnings date is December 2, 2026.

This page is an AI-written research summary of The Descartes Systems Group Inc. (DSGX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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