Descartes Systems Group Reports Record Second Quarter Revenues
The logistics software provider saw second-quarter revenues rise 12% to $201.1 million.
The Descartes Systems Group Inc. (DSGX), a provider of logistics and supply chain solutions, reported record revenues and income from operations for its second quarter of fiscal 2027. Revenues for the three months ended July 31, 2026, reached $201.1 million, a 12% increase from the $179.8 million reported in the same period the previous year,.
Services revenues drove the majority of the growth, accounting for $188.6 million, or 94% of total revenues. This segment rose 13% from $166.8 million in the second quarter of fiscal 2026. Professional services and other revenues contributed $12.4 million, while license revenues totaled $0.1 million.
Profitability metrics accelerated during the period. Income from operations rose 36% to $65.5 million, compared to $48.2 million in the second quarter of fiscal 2026,. The company said that results in the prior-year period were negatively impacted by a Fiscal 2026 Restructuring Plan. Net income for the quarter rose 32% to $50.0 million, resulting in diluted earnings of 0.57 a share,.
Cash flow from operating activities followed a similar upward trajectory, increasing 28% to $81.3 million from $63.3 million in the second quarter of fiscal 2026,. The company attributed the lower prior-year cash flow to the same restructuring plan.
For the first six months of fiscal 2027, the company reported revenues of $394.7 million, up 13% from $348.6 million in the first half of fiscal 2026. Net income for the six-month period rose 33% to $98.5 million, with diluted earnings of 1.13 a share. Adjusted EBITDA for the first half of the year rose 19% to $184.1 million.
As of July 31, 2026, the company held $401.1 million in cash. The company also repurchased shares during the first six months of the fiscal year, with a total cost of $68.3 million.
Descartes noted that it designates October 31 for its annual impairment test of goodwill. The company said it may be required to record non-cash charges associated with goodwill impairment if the fair value of its net assets falls below the carrying value.