The strong beat on both revenue and earnings with expanding margins and accelerating cash generation supports a bullish read-through. Monitor the Q2 FY2027 baseline calibration of ~$169M revenue and ~$66.5M baseline calibration for sequential growth trajectory. The NCIB repurchases at an average price of ~$68.69 suggest management sees value at current levels.
Price Chart
Executive Summary
Descartes reported record Q1 FY2027 results with total revenues of $193.6M (up 15% YoY), net income of $48.5M (up 34% YoY), and diluted EPS of $0.55 (up 34% YoY). Services revenues grew 15% to $180.5M, representing 93% of total revenue. Cash from operations increased 40% to $75.1M. The company completed two small tuck-in acquisitions (OrderMine for ~$2.3M and Idelic for ~$25.3M) and repurchased 305,000 shares for $20.8M under its NCIB. The strong beat on both revenue and earnings with accelerating cash generation is a clear positive signal.
Key Facts
- Total revenues of $193.6M, up 15% from $168.7M YoY
- Net income of $48.5M, up 34% from $36.2M YoY
- Diluted EPS of $0.55, up 34% from $0.41 YoY
- Services revenues of $180.5M, up 15% from $156.6M YoY, representing 93% of total revenue
- Cash provided by operating activities of $75.1M, up 40% from $53.6M YoY
- Adjusted EBITDA of $89.8M, up 20% from $75.1M YoY; Adjusted EBITDA margin of 46%
- Gross margin expanded to 78% from 76% YoY
- Cash balance of $377.0M, up $20.5M from Q4 FY2026
- Completed acquisitions of OrderMine (~$2.3M) and Idelic (~$25.3M) during the quarter
- Repurchased 305,000 shares under NCIB for $20.8M
- Revenue growth driven by new and existing customers ($18.7M incremental) and full-period contribution from 2026 acquisitions ($6.0M incremental)
Financial Impact
Revenue beat of ~$24.9M YoY (+15%), net income beat of ~$12.3M YoY (+34%), operating cash flow beat of ~$21.5M YoY (+40%)
Risk Factors
- Geopolitical tensions (Iran Conflict, Russia-Ukraine) and trade tariffs could disrupt global shipment volumes and customer demand
- Integration risk from recent acquisitions (OrderMine, Idelic) and contingent consideration up to $13M
- Foreign exchange headwinds as ~26% of revenues are in non-USD currencies while ~45% of expenses are in non-USD currencies
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0000929638-26-002122 |
| Exhibit: exhibit99-2.htm | 0000929638-26-002122 |
| Document: form6k.htm | 0000929638-26-002122 |
| Document: 0000929638-26-002122-index-headers.html | 0000929638-26-002122 |
| Document: 0000929638-26-002122-index.html | 0000929638-26-002122 |
| Document: 0000929638-26-002122.txt | 0000929638-26-002122 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 1, 2026 26d ago | Press Release | $81.19 | awaiting T+60 | — | $92.18 (+13.54%) |
Sep 10, 2026 6w ago | Press Release | $76.04 | awaiting T+60 | — | $92.18 (−21.23%) |
Sep 1, 2026 8w ago | Press Release | $80.43 | awaiting T+60 | — | $92.18 (+14.61%) |
Aug 12, 2026 10w ago | Institutional Cluster | $77.24 | awaiting T+60 | — | $92.18 (+19.34%) |
Jul 6, 2026 16w ago | Press Release | $73.13 $79.47 | ▲ +8.66% | ▲ +6.94% | $92.18 (+26.05%) |
Jun 11, 2026 19w ago | Press Release | $72.97 $75.56 | ▼ −3.55% | ▼ −0.29% | $92.18 (−26.33%) |
Jun 11, 2026 19w ago | Institutional Cluster | $73.55 $78.94 | ▲ +7.33% | ▲ +2.93% | $92.18 (+25.33%) |
Jun 4, 2026 20w ago | 6-K | $77.91 $81.84 | ▲ +5.04% | ▲ +3.16% | $92.18 (+18.32%) |
Jun 3, 2026 20w ago | Press Release | $77.91 $81.84 | ▼ −5.04% | ▼ −3.16% | $92.18 (−18.32%) |
May 4, 2026 25w ago | Press Release | $73.72 | awaiting T+60 | — | $92.18 (+25.04%) |
US Market Status
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