Descartes reports record results in FQ3

Global supply chain SaaS provider Descartes reported record results for its fiscal third quarter ended October 31 on Wednesday after the market closed.

Descartes (NASDAQ: DSGX) reported earnings per share of 50 cents for the period, which was 8 cents higher year over year and 7 cents better sequentially.

Consolidated revenue of $188 million was 11% higher y/y. Services revenue was 16% higher y/y to $174 million (organic services growth was approximately 7% excluding foreign exchange fluctuations). The results included the benefit of recent acquisitions.

“Our business performed ahead of our plans in Q3FY26, as we continue to add more solutions and content to our Global Logistics Network,” Descartes CEO Ed Ryan said in a news release.

The company’s customers are struggling with forecasting amid “continued tariff volatility” and “heightened levels of changes to sanctioned and restricted trading parties.” These challenges are driving incremental demand for Descartes’ services.

“The global logistics community continues to rely on Descartes’ Global Logistics Network for timely, accurate and reliable data and solutions to help them manage the lifecycle of shipments in increasingly complex market conditions,” Ryan said.

Descartes reported adjusted earnings before interest, taxes, depreciation and amortization of $86 million in the quarter, 19% higher y/y. The company recorded an adjusted EBITDA margin of 46%, 3 percentage points higher y/y.

The company generated $73 million in cash flow from operations during the quarter, a 22% y/y increase. It ended the period with $279 million in cash and an untapped $350 million line of credit. Descartes filed a normal course issuer bid application with the Toronto Stock Exchange to repurchase up to 10% of its stock on the open market.

Descartes also announced Ed Gardner, its current executive Vice President of corporate development, will succeed Allan Brett as chief financial officer in March. Brett will continue in a senior advisory role with Descartes through the transition, retiring at a later date.

Shares of DSGX were up 3.8% in after-hours trading on Wednesday.

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