The Descartes Systems Group
DSGXNASDAQUSD
- Source valuation snapshot. Not a live recalculation.
- Latest filed annual earnings; price snapshot date unavailable. Not forward P/E.
- Diluted earnings per share from the latest filed annual.
- $95.08 Prior regular-session close from the quote source.
- $94.13–$96.07 Regular-session low and high so far today.
- 320.6K Regular-session shares traded · Nov 11, 4:00 PM ET.
- Not yet confirmed The company has not confirmed its next report date. Reported quarters are available in the chart’s Earnings view.
- $62.56–$96.75 52-week trading low and high returned by the quote source.
Understand the Business
Why the Stock Moved
Period-matched expectations history is not yet available. Current metrics are not a substitute for a historical explanation.
The core investment thesis
Own DSGX if its logistics-and-trade-compliance network stays embedded enough that customers keep adding modules and acquired capabilities without forcing the company to trade margin for growth.
DSGX price history
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Investment thesis
What must happen next
Embedded logistics and trade-compliance workflows keep customers using Descartes and adding modules rather than replacing the platform.StrengtheningMateriality: High
Annual GAAP revenue increased from $486.0 million in FY2023 to $729.0 million in FY2026. If embeddedness holds, revenue can compound without relying solely on freight-volume cycles; if it breaks, growth becomes much more cyclical and competitive.
Watch: SAP, Oracle, Manhattan Associates or WiseTech wins broad replacements of Descartes workflows inside large shippers, 3PLs or customs brokers.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Annual GAAP revenue increased from $486.0 million in FY2023 to $729.0 million in FY2026.
Open source ↗Mission-critical compliance, routing and logistics-network software remains valuable enough that Descartes does not need to discount materially to retain customers.StrengtheningMateriality: High
Annual GAAP gross profit rose from $372.7 million in FY2023 to $561.9 million in FY2026. Sustained pricing power lets growth convert into profit; discounting would signal that the moat is weakening before revenue necessarily rolls over.
Watch: A lower-priced trade-compliance or TMS competitor forces renewal discounts in core Descartes products.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Annual GAAP gross profit rose from $372.7 million in FY2023 to $561.9 million in FY2026.
Open source ↗Descartes can add customers, modules and acquired products to its platform without proportional increases in operating expense.StrengtheningMateriality: Medium
Annual GAAP operating income increased from $130.4 million in FY2023 to $210.0 million in FY2026. Operating leverage is what turns a niche software platform from a revenue compounder into an earnings compounder; integration or support complexity would cap margins.
Watch: Acquired products require separate sales, support and engineering teams rather than being integrated into one platform.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Annual GAAP operating income increased from $130.4 million in FY2023 to $210.0 million in FY2026.
Open source ↗A cash-rich balance sheet lets Descartes keep buying niche logistics and compliance capabilities without making the business dependent on leverage.StrengtheningMateriality: Medium
Cash and cash equivalents were $356.5 million at FY2026 year-end. Disciplined, cash-funded M&A can expand the platform and TAM; debt-funded or equity-funded deals at poor prices would weaken the compounding model.
Watch: Private equity, WiseTech or other strategic buyers bid up logistics-software assets so Descartes must overpay or stop acquiring.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Cash and cash equivalents were $356.5 million at FY2026 year-end.
Open source ↗The model converts accounting earnings into cash because the software/network business is not capital-intensive or working-capital hungry.StrengtheningMateriality: Medium
Annual GAAP operating cash flow was $266.2 million in FY2026 versus GAAP net income of $163.8 million. High cash conversion funds acquisitions and product investment internally; a working-capital drag would reduce strategic flexibility and per-share compounding.
Watch: Enterprise customers demand longer payment terms or heavier implementation milestones that delay cash collection.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Annual GAAP operating cash flow was $266.2 million in FY2026 versus GAAP net income of $163.8 million.
Open source ↗
Full investment case & evidence
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Original research
Embedded logistics and trade-compliance workflows keep customers using Descartes and adding modules rather than replacing the platform. If embeddedness holds, revenue can compound without relying solely on freight-volume cycles; if it breaks, growth becomes much more cyclical and competitive.
Mission-critical compliance, routing and logistics-network software remains valuable enough that Descartes does not need to discount materially to retain customers. Sustained pricing power lets growth convert into profit; discounting would signal that the moat is weakening before revenue necessarily rolls over.
Descartes can add customers, modules and acquired products to its platform without proportional increases in operating expense. Operating leverage is what turns a niche software platform from a revenue compounder into an earnings compounder; integration or support complexity would cap margins.
A cash-rich balance sheet lets Descartes keep buying niche logistics and compliance capabilities without making the business dependent on leverage. Disciplined, cash-funded M&A can expand the platform and TAM; debt-funded or equity-funded deals at poor prices would weaken the compounding model.
The model converts accounting earnings into cash because the software/network business is not capital-intensive or working-capital hungry. High cash conversion funds acquisitions and product investment internally; a working-capital drag would reduce strategic flexibility and per-share compounding.
All standing thesis claims
Original report summary
its logistics-and-trade-compliance network stays embedded enough that customers keep adding modules and acquired capabilities without forcing the company to trade margin for growth.
Bull case and bear case
Bull case and bear case for Descartes Systems Group
Where the evidence on Descartes Systems Group stands: Strengthening on the latest evidence (Oct 15, 2026). Of its 5 thesis points, 5 strengthening.
Bull case: what the evidence supports
Embedded logistics and trade-compliance workflows keep customers using Descartes and adding modules rather than replacing the platform.
Mission-critical compliance, routing and logistics-network software remains valuable enough that Descartes does not need to discount materially to retain customers.
Descartes can add customers, modules and acquired products to its platform without proportional increases in operating expense.
A cash-rich balance sheet lets Descartes keep buying niche logistics and compliance capabilities without making the business dependent on leverage.
The model converts accounting earnings into cash because the software/network business is not capital-intensive or working-capital hungry.
Bear case: what would count against it
SAP, Oracle, Manhattan Associates or WiseTech wins broad replacements of Descartes workflows inside large shippers, 3PLs or customs brokers.
A lower-priced trade-compliance or TMS competitor forces renewal discounts in core Descartes products.
Acquired products require separate sales, support and engineering teams rather than being integrated into one platform.
Thesis-Break Engine
Thesis-break watch · Descartes Systems Group
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MARKET + FINANCIAL SNAPSHOT
The numbers behind the thesis
What Changed
- MixedForeign issuer material report (6-K).
Descartes Systems Group filed an SEC report on 2026-09-11: Foreign issuer material report (6-K). It is a dated development that tests the current thesis.
- MixedREPORT OF FOREIGN PRIVATE ISSUER.
Descartes Systems Group filed an SEC report on 2026-09-01: REPORT OF FOREIGN PRIVATE ISSUER. It is a dated development that tests the current thesis.
- MixedREPORT OF FOREIGN PRIVATE ISSUER.
Descartes Systems Group filed an SEC report on 2026-08-24: REPORT OF FOREIGN PRIVATE ISSUER. It is a dated development that tests the current thesis.
Risks / falsifiers
What could break the thesis
- SAP, Oracle, Manhattan Associates or WiseTech wins broad replacements of Descartes workflows inside large shippers, 3PLs or customs brokers.
- A lower-priced trade-compliance or TMS competitor forces renewal discounts in core Descartes products.
- Acquired products require separate sales, support and engineering teams rather than being integrated into one platform.
- Private equity, WiseTech or other strategic buyers bid up logistics-software assets so Descartes must overpay or stop acquiring.
- Enterprise customers demand longer payment terms or heavier implementation milestones that delay cash collection.
DSGX news
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Financial statements
DSGX income statement
Annual filed results · USD · Oldest to newest. Margins are calculated from the reported figures.
DSGX: quick answers
- Have members of Congress traded DSGX?
- 7 trades in DSGX have been disclosed under the STOCK Act by members of Congress, the President or senior officials, none in reports made public in the last 90 days. Every disclosed DSGX trade