Company Reports

We are discontinuing analyst coverage of Descartes Systems.

Descartes' first-quarter fiscal 2027 revenue grew 15% year over year to USD 193.6 million on good 15% growth in services revenue. Adjusted EBITDA margin was 46.4%.

Descartes operates the largest neutral shipping network in the world, connecting 200,000 shippers, manufacturers, suppliers, retailers, and government agencies and enabling the sharing of tens of billions of shipping-related transactions each year. The firm also offers a broad portfolio of solutions that solve a variety of challenges in the shipping industry.

Descartes operates the largest neutral shipping network in the world, connecting 200,000 shippers, manufacturers, suppliers, retailers, and government agencies and enabling the sharing of tens of billions of shipping-related transactions each year. The firm also offers a broad portfolio of solutions that solve a variety of challenges in the shipping industry.

Descartes' fiscal fourth-quarter revenue grew by 15% year over year to $192.8 million, on the back of good 15% growth in services revenue, while adjusted EBITDA margin came in at 46%.

The pace of change in the software industry has accelerated in recent months, leading to heightened uncertainty and prompting us to reassess our moat ratings.

Descartes operates the largest neutral shipping network in the world, connecting 200,000 shippers, manufacturers, suppliers, retailers, and government agencies and enabling the sharing of tens of billions of shipping-related transactions each year. The company also offers a broad portfolio of solutions that solve a variety of challenges in the shipping industry.

Descartes operates the largest neutral shipping network in the world, connecting 200,000 shippers, manufacturers, suppliers, retailers, and government agencies and enabling the sharing of tens of billions of shipping-related transactions each year. The company also offers a broad portfolio of solutions that solve a variety of challenges in the shipping industry.

Descartes' fiscal third-quarter revenue grew by 11% year over year to $187.7 million, driven by 16% growth in services revenue, while adjusted EBITDA margin was 45.6%.

Descartes operates the largest neutral shipping network in the world, connecting 200,000 shippers, manufacturers, suppliers, retailers, and government agencies and enabling the sharing of tens of billions of shipping-related transactions each year. The company also offers a broad portfolio of solutions that solve a variety of challenges in the shipping industry.

Descartes' fiscal second-quarter revenue grew by 10% year over year to $179.8 million, on the back of a solid 14% growth in services revenue. Adjusted EBITDA margin, which came in at 44.6%, posted another quarter of double-digit growth. However, it narrowly missed the FactSet consensus estimates.

Descartes' fiscal first-quarter revenue grew by 11% year over year to $169 million, while adjusted EBITDA margin was 44.5%, both of which were just shy of FactSet consensus estimates.

Descartes operates the largest neutral shipping network in the world, connecting 200,000 shippers, manufacturers, suppliers, retailers, and government agencies and enabling the sharing of tens of billions of shipping-related transactions each year. The company also offers a broad portfolio of solutions that solve a variety of challenges in the shipping industry.

We raise our fair value estimate to USD 96/CAD 139 per share from USD 90/CAD 127 for wide-moat Descartes after the firm's fourth-quarter results that were in line with our expectations. Descartes continues to rake in the benefits of increased exogenous shocks and growing complexity in the global supply chain and we think this continues throughout fiscal 2026. This seems especially true to us with heightened uncertainty around trade and tariffs from the Trump administration. While we are impressed with the company’s performance and think it will benefit from the current environment, we think these factors are already baked into the share price, which we view as slightly overvalued.

Descartes operates the largest neutral shipping network in the world, connecting 200,000 shippers, manufacturers, suppliers, retailers, and government agencies and enabling the sharing of tens of billions of shipping-related transactions each year. The company also offers a broad portfolio of solutions that solve a variety of challenges in the shipping industry.

Descartes operates the largest neutral shipping network in the world, connecting 200,000 shippers, manufacturers, suppliers, retailers, and government agencies and enabling the sharing of tens of billions of shipping-related transactions each year. The firm also offers a broad portfolio of solutions that solve a variety of challenges in the shipping industry.

We are raising our fair value estimate to USD 90/CAD 127 per share from USD 85/CAD 115 for wide-moat Descartes after the firm reported mixed fiscal 2025 third-quarter results relative to our forecasts, with higher revenue but slightly weaker profitability. Descartes continues to rake in the benefits of increased exogenous shocks and growing complexity in the supply chain. It recorded solid organic growth, bolstered by the acquisitions of MyCarrierPortal, a risk-management firm for freight brokers, for USD 22.5 million and Sellercloud, an inventory- and order-management service for e-commerce vendors, for USD 110 million. We expect these acquisitions to contribute to top-line growth and margin expansion in the coming years. We raised our fair value estimate to account for continued strength on the top line and our optimistic outlook on recent acquisitions, but we view the stock as overvalued, up 22% over the last three months. We see a similar dynamic for much of our coverage, with software stocks running since early September in the hope of further rate cuts and a more pro-growth stance from the incoming administration.

Descartes operates the largest neutral shipping network in the world, connecting 200,000 shippers, manufacturers, suppliers, retailers, and government agencies and enabling the sharing of tens of billions of shipping-related transactions each year. The firm also offers a broad portfolio of solutions that solve a variety of challenges in the shipping industry.

We are raising our fair value estimate to USD 85/CAD 115 from USD 81/CAD 111 for wide-moat Descartes after the firm reported mixed fiscal 2025 second-quarter results relative to our expectations, with better revenue and slightly weaker margins. The company is doing well to expand its business organically and inorganically, completing the acquisition of BoxTop, a software vendor for small logistics providers, for USD 12 million this quarter. Management believes the acquisition environment should remain favorable through the rest of the year. We consistently hear from our coverage that small businesses are hurting, so this tuck-in deal is timely. Management provided third-quarter guidance that, while expectedly conservative, contains positive indicators for US trucking. We believe that the evolution of the supply chain toward greater complexity and increased exogenous shocks benefits Descartes, as proved over the last few years. We raised our near-term revenue estimates to account for quarterly strength and recent acquisitions but still view the shares as slightly overvalued.

Descartes operates the largest neutral shipping network in the world, connecting 200,000 shippers, manufacturers, suppliers, retailers, and government agencies and enabling the sharing of tens of billions of shipping-related transactions each year. The firm also offers a broad portfolio of solutions that solve a variety of challenges in the shipping industry.