Descartes did not provide specific financial guidance for future quarters or the full year.
Result drivers
Services revenue growth - Services revenue, which comprised 94% of total revenue, rose 13% year over year, supporting overall revenue growth.
Restructuring base effect - Year-over-year gains in operating income, net income and cash flow were amplified because the prior-year Q2FY26 was depressed by the fiscal 2026 restructuring plan.
Operating leverage - Income from operations rose 36% to $65.5 million as gross profit increased $18.5 million while operating expenses rose $1.2 million, aided by lower other charges.
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the software peer group is "buy".
The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 30 three months ago.
Quarterly results beat revenue and EBITDA estimates
Canada logistics software firm's fiscal Q2 revenue rose 12% year over year, slightly beating analyst expectations.
Adjusted EBITDA for fiscal Q2 beat analyst expectations.
Diluted EPS for fiscal Q2 rose 33% year over year to $0.57.
DSGX•
