Descartes Q1 Revenues Rise 15% to $193.6M, EPS $0.55 and $25.3M Idelic Buy
DSGX•Descartes Systems Group reported Q1 FY27 revenues of $193.6 million, up 15% year-over-year, with net income rising 34% to $48.5 million and EPS climbing to $0.55. Adjusted EBITDA grew 20% to $89.8 million, while the company repurchased $20.8 million in shares and closed its $25.3 million Idelic acquisition.
1. Q1 FY27 Financial Performance
Descartes reported Q1 FY27 revenues of $193.6 million, a 15% increase from Q1 FY26, led by services revenues of $180.5 million. Net income rose 34% to $48.5 million, delivering diluted EPS of $0.55, while adjusted EBITDA improved 20% to $89.8 million.
2. Cash Flow and Liquidity Position
Operating activities generated $75.1 million in cash, up 40% year-over-year, contributing to a cash balance of $377.0 million at April 30, 2026, up $20.5 million from the end of Q4 FY26.
3. Share Repurchase Program
Under its normal course issuer bid, Descartes repurchased and canceled 305,000 common shares for $20.8 million in Q1 FY27 and acquired an additional 196,800 shares through June 2, 2026, with authorization to buy up to 10% of its public float through December 10, 2026.
4. Acquisition of Idelic
On April 22, 2026, Descartes completed its acquisition of Idelic Inc., an AI-powered driver safety and performance management firm, for approximately $25.3 million net of cash acquired, funded from existing cash reserves with potential performance-based contingent consideration.
