Descartes Reports Strong Q2 Earnings Amid Growth in Services Revenue
Descartes Systems Group (DSGX) delivered strong financial results for the second quarter of fiscal 2027, with total revenue reaching $193.6 million — a 15% increase from last year driven by record performance in services. The company reported net income of $48.5 million and adjusted EBITDA of $89.8 million, both up significantly compared to the prior year. Services accounted for 93% of total revenue at $180.5 million, with organic growth excluding acquisitions reaching 9%. Descartes also highlighted a record operating cash flow of $75.1 million and maintained strong liquidity with $377 million in cash on hand. Despite these gains, the company noted challenges such as declining US domestic trucking shipments by 4% due to macroeconomic headwinds and geopolitical risks like the war in Iran impacting shipping routes. Management also pointed out regulatory pressures affecting driver qualifications and liability for freight brokers. Descartes remains focused on expanding its Global Trade Intelligence solutions amid rising demand driven by tariff uncertainty.
Tickers: $DSGX
Topics: acquisitions cash flow ebitda net income revenue