Descartes Systems Group Reports Record First Quarter Revenues
The logistics technology provider saw revenues rise 15% to $193.6 million for the first quarter of fiscal 2027.
The provider of global logistics technology solutions, Descartes Systems Group Inc. (DSGX), reported record revenues of $193.6 million for the first quarter of fiscal 2027, an increase from $168.7 million in the same period last year. Services revenues accounted for 93% of the total at $180.5 million, rising 15% from $156.6 million in the first quarter of fiscal 2026.
Profitability metrics trended upward over the same period. Income from operations rose 35% to $62.5 million, while net income increased 34% to $48.5 million. Net income as a percentage of revenues reached 25%, compared to 21% in the first quarter of fiscal 2026. Diluted earnings per share were $0.55, up from $0.41 a share in the prior-year quarter.
Cash flow from operating activities grew 40% to $75.1 million compared to $53.6 million in the first quarter of fiscal 2026. The company ended the period with $377.0 million in cash, a $20.5 million increase during the quarter.
Descartes utilized its cash position for both acquisitions and shareholder returns. On April 22, 2026, the company acquired Idelic Inc., a provider of AI-powered driver safety and performance management solutions, for approximately $25.3 million net of cash acquired. The deal includes potential performance-based contingent consideration of up to $12.0 million based on revenue targets over the first two years post-acquisition. Total cash used for the acquisition of subsidiaries during the quarter was $29.7 million.
Regarding capital allocation, the company repurchased and cancelled 305,000 common shares in the first quarter of fiscal 2027 at an aggregate cost of $20.8 million under a normal course issuer bid commenced on December 11, 2025. Between May 1, 2026, and June 2, 2026, Descartes purchased an additional 196,800 common shares under the same program.