Descartes Systems Group Q2 Profit Rises, Misses Estimates with EPS of $0.43

Descartes Systems Group reported Q2 profit of $38.02 million, up from $34.68 million last year, but missed analyst estimates of $0.51 per share. Revenue rose 10% to $179.82 million from $163.43 million last year. The company's earnings per share came in at $0.43, compared to $0.40 last year.

Title: Descartes Systems Group Reports Q2 2026 Financial Results

Descartes Systems Group Inc. (TSX: DSG) (Nasdaq: DSGX) has announced its financial results for the second quarter of fiscal year 2026 (Q2FY26). The company reported revenues of $179.8 million, up 10% from the same period last year and up 7% from the previous quarter. Services revenues, which comprise 93% of total revenues, increased by 14% to $166.8 million compared to Q2FY25.

The company's income from operations was $48.2 million, up 5% from Q2FY25, and net income was $38.0 million, up 10% from the same period last year. Earnings per share on a diluted basis increased to $0.43 from $0.40 in Q2FY25. Adjusted EBITDA, a non-GAAP financial measure, was $80.2 million, up 14% from Q2FY25.

Despite the challenging market conditions for global trade, Descartes' CEO, Edward J. Ryan, stated, "Our business performed consistent with our plans in Q2FY26, despite very challenging market conditions for global trade."

The company's cash provided by operating activities was $63.3 million, up 82% from Q2FY25. This increase was partially due to the payment of $5 million in personnel departure amounts in Q2FY26, compared to the payment of $25.0 million in contingent acquisition consideration in Q2FY25.

Descartes also reported a year-to-date (YTD) revenue of $348.6 million, up 11% from the same period last year. The company's cash position at July 31, 2025, was $240.6 million.

The company announced two acquisitions during the quarter: PackageRoute Holdco, Inc. for approximately $1.9 million and Finale, Inc. for approximately $40.0 million, plus potential performance-based contingent consideration of up to $15.0 million.

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, September 3, 2025. The designated numbers are +1 289 514 5100 for North America and +1 800 717 1738 for international, using conference ID 15589. The webcast will be available on the Descartes website.

References
1. [Descartes Systems Group Inc. Announces Fiscal 2026 Second-Quarter Financial Results](https://www.globenewswire.com/news-release/2025/09/03/3144104/0/en/Descartes-Announces-Fiscal-2026-Second-Quarter-Financial-Results.html)