The large EPS miss may trigger sell-off; watch for management commentary on guidance on the conference call. The strong revenue growth and cash flow could limit downside, but the miss suggests cost or share count issues.
Price Chart
Executive Summary
Descartes reported Q1FY27 revenue of $193.6M (+15% YoY, slightly above consensus of $191.4M), but EPS of $0.55 missed consensus of $0.63 by 12.7%, a significant miss. Despite strong operating cash flow and margin expansion, the earnings miss is likely to weigh on the stock near-term.
Key Financial Metrics
Key Facts
- Revenue $193.6M (vs est $191.4M, +15% YoY)
- Diluted EPS $0.55 (vs est $0.63, -12.7% miss)
- Services revenue $180.5M (93% of total, +15% YoY)
- Operating income $62.5M (+35% YoY), margin 32.3%
- Operating cash flow $75.1M (+40% YoY)
- Adjusted EBITDA $89.8M (46% margin)
- Completed acquisition of Idelic for ~$25.3M net cash
- Repurchased 305,000 shares under NCIB for $20.8M
Financial Impact
EPS miss of $0.08 vs consensus, potentially reducing market cap by multiple of that miss
Risk Factors
- Downward earnings revisions from analysts
- Potential slowdown in acquisition integration
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3306424 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 1, 2026 26d ago | Press Release | $81.19 | awaiting T+60 | — | $92.93 (+14.46%) |
Sep 10, 2026 6w ago | Press Release | $76.04 | awaiting T+60 | — | $92.93 (−22.21%) |
Sep 1, 2026 8w ago | Press Release | $80.43 | awaiting T+60 | — | $92.93 (+15.54%) |
Aug 12, 2026 10w ago | Institutional Cluster | $77.24 | awaiting T+60 | — | $92.93 (+20.31%) |
Jul 6, 2026 16w ago | Press Release | $73.13 $79.47 | ▲ +8.66% | ▲ +6.94% | $92.93 (+27.08%) |
Jun 11, 2026 19w ago | Press Release | $72.97 $75.56 | ▼ −3.55% | ▼ −0.29% | $92.93 (−27.35%) |
Jun 11, 2026 19w ago | Institutional Cluster | $73.55 $78.94 | ▲ +7.33% | ▲ +2.93% | $92.93 (+26.35%) |
Jun 4, 2026 20w ago | 6-K | $77.91 $81.84 | ▲ +5.04% | ▲ +3.16% | $92.93 (+19.28%) |
Jun 3, 2026 20w ago | Press Release | $77.91 $81.84 | ▼ −5.04% | ▼ −3.16% | $92.93 (−19.28%) |
May 4, 2026 25w ago | Press Release | $73.72 | awaiting T+60 | — | $92.93 (+26.06%) |
US Market Status
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