Record Revenues and Income from Operations
WATERLOO, Ontario and ATLANTA, March 11, 2026 (GLOBE NEWSWIRE) — The Descartes Systems Group Inc. (TSX:DSG) (NASDAQ:DSGX) announced its financial results for its fiscal 2026 fourth quarter (Q4FY26) and year (FY26) ended January 31, 2026. 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).
“Our business performed ahead of our plans for both the fourth quarter and full fiscal year,” said Edward J. Ryan, Descartes’ CEO. “Our customers continue to face tariff uncertainty, both in the future tariff landscape and the potential recovery of some previously-paid tariffs. A rapidly changing geopolitical landscape also continues to impact shipping and supply chains. These conditions and uncertainty contribute to forecasting, pricing, planning and execution challenges for shippers, carriers and logistics services providers alike. Descartes’ Global Logistics Network continues to be the supply chain community’s critical source of timely, accurate and reliable data and solutions to fuel AI and decision making in these complex market conditions.”
FY26 Financial Results
As described in more detail below, key financial highlights for Descartes’ FY26 included:
- Revenues of $729.0 million, up 12% from $651.0 million in the same period a year ago (FY25);
- Revenues were comprised of services revenues of $677.2 million (93% of total revenues), professional services and other revenues of $49.3 million (7% of total revenues) and license revenues of $2.5 million (less than 1% of total revenues). Services revenues were up 15% from $590.2 million in FY25;
- Cash provided by operating activities of $266.2 million, up 21% from $219.3 million in FY25. Cash provided by operating activities was impacted by the following: (i) in FY26 by the payment of $6.5 million in personnel departure amounts; and (ii) in FY25 by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition;
- Income from operations of $210.0 million, up 16% from $181.1 million in FY25;
- Net income of $163.8 million, up 14% from $143.3 million in FY25. Net income as a percentage of revenues was 22%, consistent with FY25;
- Earnings per share on a diluted basis of $1.87, up 14% from $1.64 in FY25; and
- Adjusted EBITDA of $329.5 million, up 16% from $284.7 million in FY25. Adjusted EBITDA as a percentage of revenues was 45%, compared to 44% in FY25.
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.
The following table summarizes Descartes’ results in the categories specified below over FY26 and FY25 (dollar amounts in millions):
| FY26 | FY25 | |||
| Revenues | 729.0 | 651.0 | ||
| Services revenues | 677.2 | 590.2 | ||
| Gross margin | 77 | % | 76 | % |
| Cash provided by operating activities* | 266.2 | 219.3 | ||
| Income from operations | 210.0 | 181.1 | ||
| Net income | 163.8 | 143.3 | ||
| Net income as a % of revenues | 22 | % | 22 | % |
| Earnings per diluted share | 1.87 | 1.64 | ||
| Adjusted EBITDA | 329.5 | 284.7 | ||
| Adjusted EBITDA as a % of revenues | 45 | % | 44 | % |
* Cash provided by operating activities was impacted by the following: (i) in FY26 by the payment of $6.5 million in personnel departure amounts; and (ii) in FY25 by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition
Q4FY26 Financial Results
As described in more detail below, key financial highlights for Q4FY26 included:
- Revenues of $192.8 million, up 15% from $167.5 million in the fourth quarter of fiscal 2025 (Q4FY25) and up 3% from $187.7 million in the previous quarter (Q3FY26);
- Revenues were comprised of services revenues of $180.1 million (93% of total revenues), professional services and other revenues of $12.6 million (7% of total revenues) and license revenues of $0.1 million (less than 1% of total revenues). Services revenues were up 15% from $156.5 million in Q4FY25 and up 4% from $173.7 million in Q3FY26;
- Cash provided by operating activities of $75.9 million, up 25% from $60.7 million in Q4FY25 and up 3% from $73.4 million in Q3FY26;
- Income from operations of $59.0 million, up 25% from $47.1 million in Q4FY25 and up 4% from $56.6 million in Q3FY26;
- Net income of $45.6 million, up 22% from $37.4 million in Q4FY25 and up 4% from $43.9 million in Q3FY26. Net income as a percentage of revenues was 24%, compared to 22% in Q4FY25 and 23% in Q3FY26;
- Earnings per share on a diluted basis of $0.52, up 21% from $0.43 in Q4FY25 and up 4% from $0.50 in Q3FY26; and
- Adjusted EBITDA of $88.7 million, up 18% from $75.0 million in Q4FY25 and up 4% from $85.5 million in Q3FY26. Adjusted EBITDA as a percentage of revenues was 46%, compared to 45% in Q4FY25 and 46% in Q3FY26, respectively.
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):
| Q4 FY26 |
Q3 FY26 |
Q2 FY26 |
Q1 FY26 |
Q4 FY25 |
||||||
| Revenues | 192.8 | 187.7 | 179.8 | 168.7 | 167.5 | |||||
| Services revenues | 180.1 | 173.7 | 166.8 | 156.6 | 156.5 | |||||
| Gross margin | 78 | % | 77 | % | 77 | % | 76 | % | 76 | % |
| Cash provided by operating activities | 75.9 | 73.4 | 63.3 | 53.6 | 60.7 | |||||
| Income from operations | 59.0 | 56.6 | 48.2 | 46.2 | 47.1 | |||||
| Net income | 45.6 | 43.9 | 38.0 | 36.2 | 37.4 | |||||
| Net income as a % of revenues | 24 | % | 23 | % | 21 | % | 21 | % | 22 | % |
| Earnings per diluted share | 0.52 | 0.50 | 0.43 | 0.41 | 0.43 | |||||
| Adjusted EBITDA | 88.7 | 85.5 | 80.2 | 75.1 | 75.0 | |||||
| Adjusted EBITDA as a % of revenues | 46 | % | 46 | % | 45 | % | 45 | % | 45 | % |
Cash Position
At January 31, 2026, Descartes had $356.5 million in cash. Cash increased by $77.7 million in Q4FY26 and increased by $120.4 million in FY26. The table set forth below provides a summary of cash flows for Q4FY26 and FY26 in millions of dollars:
| Q4FY26 | FY26 | |||
| Cash provided by operating activities | 75.9 | 266.2 | ||
| Additions to property and equipment | (1.4 | ) | (5.7 | ) |
| Acquisitions of subsidiaries, net of cash acquired | – | (151.6 | ) | |
| Issuances of common shares, net of issuance costs | 2.8 | 14.1 | ||
| Payment of withholding taxes on net share settlements | – | (6.5 | ) | |
| Payment of contingent consideration | (0.5 | ) | (1.7 | ) |
| Repurchase of common shares for cash, including purchasing costs | (0.9 | ) | (0.9 | ) |
| Effect of foreign exchange rate on cash | 1.8 | 6.5 | ||
| Net change in cash | 77.7 | 120.4 | ||
| Cash, beginning of period | 278.8 | 236.1 | ||
| Cash, end of period | 356.5 | 356.5 | ||
Normal Course Issuer Bid
Descartes commenced a normal course issuer bid (“NCIB”) on December 11, 2025 to purchase up to approximately 8.6 million common shares in the open market for cancellation. Under the NCIB, Descartes is permitted to repurchase for cancellation, at its discretion on or before December 10, 2026, up to 10% of the “public float” (calculated in accordance with the rules of the Toronto Stock Exchange (“TSX”)) of Descartes’ issued and outstanding common shares. Any purchases under the NCIB will be subject to the terms and limitations applicable to such NCIB and will be made through the facilities of the TSX, Nasdaq, other designated exchanges and/or alternative Canadian trading systems, or by such other means as may be permitted by the Ontario Securities Commission or other applicable Canadian Securities Administrators. As of January 31, 2026, we have repurchased and cancelled 10,500 of our common shares under the NCIB for an aggregate cost of $0.9 million (CAD 1.2 million), including costs associated with the offer.
Completes Acquisition of OrderMine
On March 11, 2026, Descartes acquired Utordo Ltd., doing business as OrderMine, a UK-based provider of AI-powered forecasting and demand planning solutions designed to support ecommerce businesses across their growth lifecycle. The purchase price for the acquisition was approximately $2.3 million (GBP 1.8 million), which was funded from cash on hand, plus potential performance-based contingent consideration of up to $1.0 million (GBP 0.8 million) based on OrderMine achieving revenue-based targets over the first two years post-acquisition.
CFO Transition
On December 3, 2025, Descartes announced that Edward Gardner would succeed Allan Brett as Descartes’ Chief Financial Officer. Mr Gardner’s appointment is effective March 12, 2026. Mr. Brett will continue his employment with Descartes in a senior advisory role to the executive team.
Conference Call
Members of Descartes’ executive management team will host a conference call to discuss the company’s financial results at 5:30 p.m. ET on Wednesday, March 11, 2026. Designated numbers are +1 289 514 5100 or Toll-Free for North America at +1 800 717 1738, using conference ID 56287.
The company will simultaneously conduct an audio webcast on the Descartes website at www.descartes.com/descartes/investor-relations. A phone conference dial-in or webcast log-in is required approximately 10 minutes before the start.
Replays of the conference call will be available until Wednesday, March 18, 2026, by dialing +1 289 819 1325 or Toll-Free for North America using +1 888 660 6264 with Playback Passcode: 56287#. An archived replay of the webcast will be available at www.descartes.com/descartes/investor-relations.
About Descartes
Descartes powers more responsive, efficient, secure and sustainable international and domestic supply chains by uniting logistics-intensive businesses on its Global Logistics Network (“GLN”). Shippers, carriers, and logistics service providers connect and collaborate on the GLN, leveraging technology, data and artificial intelligence (“AI”) to manage last mile deliveries, domestic and international shipments, transportation rating and payment, global trade research, customs compliance and a variety of regulatory processes. Learn more about Descartes (NASDAQ:DSGX) (TSX:DSG) at www.descartes.com, and connect with us on LinkedIn and X.
Descartes Investor Contact
Laurie McCauley
(519) 746-2969
investor@descartes.com
Cautionary Statement Regarding Forward-Looking Statements
This release may contain forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relates to Descartes’ expectations concerning future revenues and earnings, and our projections for any future reductions in expenses or growth in margins and generation of cash; our assessment of the potential impact of geopolitical events, such as the conflict between Iran, Israel and the US (the “Iran Conflict”), and the ongoing conflict between Russia and Ukraine (the “Russia-Ukraine Conflict”), or other potentially catastrophic events, on our business, results of operations and financial condition; our assessment of the potential impact of tariffs, sanctions and other actions by individual countries on global trade and our business; continued growth and acquisitions including our assessment of any increased opportunity for our products and services as a result of trends in the logistics and supply chain industries; rate of profitable growth and Adjusted EBITDA margin operating range; demand for Descartes’ solutions; growth of Descartes’ GLN; customer buying patterns; customer expectations of Descartes; development of the GLN and the benefits thereof to customers; and other matters. These forward-looking statements are based on certain assumptions including the following: global shipment volumes continuing at levels generally consistent with those experienced historically; the Iran Conflict and the Russia-Ukraine Conflict not having a material negative impact on shipment volumes or on the demand for the products and services of Descartes by its customers and the ability of those customers to continue to pay for those products and services; countries continuing to implement and enforce existing and additional customs and security regulations relating to the provision of electronic information for imports and exports; countries continuing to implement and enforce existing and additional trade restrictions and sanctioned party lists with respect to doing business with certain countries, organizations, entities and individuals; Descartes’ continued operation of a secure and reliable business network; the stability of general economic and market conditions, currency exchange rates, and interest rates; equity and debt markets continuing to provide Descartes with access to capital; Descartes’ continued ability to identify and source attractive and executable business combination opportunities; Descartes’ ability to develop solutions that keep pace with the continuing changes in technology, including AI, and our continued compliance with third party intellectual property rights. These assumptions may prove to be inaccurate. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Descartes, or developments in …