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Record Revenues and Income from Operations
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WATERLOO, Ontario and ATLANTA, Sept. 10, 2026 (GLOBE NEWSWIRE) — The Descartes Systems Group Inc. (TSX:DSG) (Nasdaq:DSGX) announced its financial results for its fiscal 2027 second quarter (Q2FY27). All financial results referenced are in United States (US) currency and, unless otherwise indicated, are determined in accordance with US Generally Accepted Accounting Principles (GAAP).
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“Today’s supply chains and logistics operations need to be agile in the face of an increasingly dynamic global trade environment,” said Edward J. Ryan, Descartes’ CEO. “Having a broad scope of solutions on our Global Logistics Network is imperative to help isolate our customers from complexity, bringing together the data and domain expertise required to efficiently manage the lifecycle of shipments. We will continue to make investments into our business to add more capabilities and data onto our network, and we are looking forward to demonstrating the next generation of Descartes solutions at our Innovation Forum next month.”
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Q2FY27 Financial Results
As described in more detail below, key financial highlights for Descartes’ Q2FY27 included:
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- Revenues of $201.1 million, up 12% from $179.8 million in the second quarter of fiscal 2026 (Q2FY26) and up 4% from $193.6 million in the previous quarter (Q1FY27);
- Revenues were comprised of services revenues of $188.6 million (94% of total revenues), professional services and other revenues of $12.4 million (6% of total revenues) and license revenues of $0.1 million (less than 1% of total revenues). Services revenues were up 13% from $166.8 million in Q2FY26 and up 4% from $180.5 million in Q1FY27;
- Cash provided by operating activities of $81.3 million, up 28% from $63.3 million in Q2FY26 and up 8% from $75.1 million in Q1FY27. Cash provided by operating activities was negatively impacted in Q2FY26 by our Fiscal 2026 Restructuring Plan;
- Income from operations of $65.5 million, up 36% from $48.2 million in Q2FY26 and up 5% from $62.5 million in Q1FY27. Income from operations was negatively impacted in Q2FY26 by our Fiscal 2026 Restructuring Plan;
- Net income of $50.0 million, up 32% from $38.0 million in Q2FY26 and up 3% from $48.5 million in Q1FY27. Net income was negatively impacted in Q2FY26 by our Fiscal 2026 Restructuring Plan. Net income as a percentage of revenue was 25%, compared to 21% in Q2FY26 and 25% in Q1FY27;
- Earnings per share on a diluted basis of $0.57, up 33% from $0.43 in Q2FY26 and up 4% from $0.55 in Q1FY27; and
- Adjusted EBITDA of $94.4 million, up 18% from $80.2 million in Q2FY26 and up 5% from $89.8 million in Q1FY27. Adjusted EBITDA as a percentage of revenues was 47%, compared to 45% and 46% in Q2FY26 and Q1FY27, respectively.
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Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures provided as a complement to financial results presented in accordance with GAAP. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). These items are considered by management to be outside Descartes’ ongoing operational results. We define Adjusted EBITDA as a percentage of revenues as the quotient, expressed as a percentage, from dividing Adjusted EBITDA for a period by revenues for the corresponding period. A reconciliation of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income determined in accordance with GAAP is provided later in this release.
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The following table summarizes Descartes’ results in the categories specified below over the past 5 fiscal quarters (unaudited; dollar amounts, other than per share amounts, in millions):