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DSDSGX

The Descartes Systems Group Inc.

Strong FundamentalsStrong FundamentalsRevenue growing 17% YoY at strong marginsStreet coverage with positive forward estimatesQuiet on X (19 mentions/wk)
$DSGX·$6.8B·Software - Application·Technology
$78.49-2.4%YTD-11.9%1Y-20.2%
Mentions · last 7 days
2026-08-24: 15 posts19
Price updated 11h ago·X counts updated 9d ago
DSDSGX
$DSGXThe Descartes Systems Group Inc.
$78.49-2.41%19 posts
AI analysisFundamentalsVoices on X
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AI verdict & sentimentAI analysisGenerated by AI from underlying data

Top X posts

Today's AI verdict on what's driving $DSGX, plus how loud the X conversation is and which way it's leaning.

AI analysis

TickerTalks’ read on the fundamentals and what’s driving the move.

Proven numbersWinding up for a moveAI verdict · as of 2026-08-20

Trading in a tight range and building pressure — a move looks likely soon, but the direction isn't clear yet.

Descartes Systems logistics software compounder down 12% YTD but shipping AI-powered product features — steady 15%+ revenue growth.

The Descartes Systems Group is a Canadian-listed logistics-and-supply-chain software company — customs compliance, transportation management, and now AI-powered document processing serving global freight forwarders and shippers. The stock is down 12% year-to-date despite steady 10-17% revenue growth.

  • Revenue growth is steady if not exciting: Q4 fiscal-2026 revenue grew 17.2% year-on-year to $196M after 10.1% and 10% the prior two — the underlying supply-chain-software franchise is compounding cleanly, and the FY28 consensus revenue of $896M implies continued growth.
  • The AI-product roadmap is real and material: recently introduced AI-powered image document management for customs entry processing, plus new AI-powered Free Trade Intelligence solution — these aren't marketing narrative, they are shipped product enhancements that support pricing power over time.
  • The valuation is where the setup gets interesting: 41x trailing earnings on FY27 consensus of $1.87 EPS puts the forward multiple at 41x — high on P/E but supported by 30% operating margin and the 15%+ revenue growth cadence, though the 12% YTD decline suggests some sell-side model reset.

Trajectory is coiling at 32% of the 52-week range on the sell-side reset; the Sept 10 Q2 fiscal-2027 print needs continued 15%+ revenue growth plus AI-product-adoption commentary — a soft freight-forwarding volume commentary or a Descartes-competitor-share-loss disclosure breaks the setup back toward $70.

What to watch: Sept 10 Q2 fiscal-2027 earnings — continued 15%+ revenue growth plus AI-product-adoption commentary sustains the setup; a soft freight-forwarding volume commentary or a Descartes-competitor-share-loss disclosure breaks the setup back toward $70.

On the calendar: 2026-09-10 — Q2 fiscal-2027 earnings

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What it does

Plain-English summary of the business — what they sell and how they make money.

Cloud logistics platform handling customs compliance, transportation management, and last-mile routing for global shippers.

Industry overviewAI analysisGenerated by AI from underlying data

Where Software - Application sits in its cycle right now — and what that implies for $DSGX.

Software - Application · Technology

SaaS multiples remain compressed as rate-sensitive valuations weigh on pure-play software; customers are lengthening deal cycles outside of AI-native workloads. AI co-pilot upsell is the only clear near-term catalyst — companies without it are treading water.

What this means for $DSGX

Partial — cloud infrastructure exposure benefits indirectly from hyperscaler capex; core business is The Descartes Systems Group Inc.

Top industry ETF

$IGViShares Expanded Tech-Software Sector ETF
-4.2%YTD
-3.6%1Y

Fundamentals & catalyst

Profitability, valuation, and the next earnings event — at a glance, with rule-of-thumb signals.

Key ratios

P/E
40.7How much investors are paying per dollar of profit the company actually earned in the last 12 months. Lower means the stock looks cheaper relative to earnings.~15–25 is typical for the S&P 500; high-growth names trade 30+; hyper-growth or speculative can be 100+ or negative.
ROIC
9.9%What percentage return the business earns on every dollar of capital (equity + debt) deployed in operations. The cleanest measure of business quality.Above ~15% is high-quality; consistently above 25% suggests a real moat. Below the company's cost of capital is value-destroying.
Op margin
29.6%Operating profit (after sales, marketing, R&D, and overhead but before interest and taxes) as a percentage of revenue. The clearest view of how well the underlying business is run.Mature business above 20% is healthy; software businesses can run 30%+; commodity / retail businesses operate in single digits.
FCF yield
3.9%Free cash flow (operating cash flow minus capex) divided by the company's market cap. The cash-on-cash return you'd get owning the whole business at today's price.Above ~5% is attractive; below ~2% means you're paying up for growth. Capital-light businesses (software) run higher than capital-heavy ones (utilities).
P/S
9.1Same idea as P/E but per dollar of revenue. Useful for companies that aren't profitable yet, where P/E is meaningless.Under ~2 is cheap; software / SaaS often runs 8–15; well above 20 implies the market is pricing in very high future growth.
ROE
10.8%Net income as a percentage of shareholders' equity. Similar to ROIC but counts only the equity side.Above 20% is strong, but can be inflated by leverage — a heavily indebted company can show high ROE with weak underlying ROIC.
Gross margin
74.2%Revenue minus the direct cost of producing what was sold, as a percentage of revenue. The first read on whether the product is structurally profitable.Software / SaaS is typically 70%+; consumer goods 30–50%; commodity / hardware businesses can be under 20%.
D/E
0.0Total debt divided by shareholders' equity. Measures how much the business runs on borrowed money versus owner capital.Under 1 is conservative; 1–2 is typical for mature businesses; over 2 is leveraged and more sensitive to interest rates.

Past earnings

QuarterReportedActualEstimateSurprise
Q1 2026Jun 3, 2026$0.55$0.53+3.8%
Q4 2025Mar 11, 2026$0.52$0.50+4.0%
Q3 2025Dec 3, 2025$0.50$0.46+8.7%
Q2 2025Sep 3, 2025$0.43$0.49-12.2%
Next earningsThu, Sep 10·consensus EPS $0.57

Quarterly trend

QuarterRevenueYoYGrossOpEPSFCF
Q4 FY26$196.3M+17.2%66.7%33.7%$0.54$75.9M
Q3 FY26$185.8M+10.1%66.3%33.1%$0.51$71.5M
Q2 FY26$179.8M+10.0%76.9%26.8%$0.44$62.1M
Q1 FY26$168.7M+11.5%76.4%27.4%$0.42$51.7M

Forward consensus

5-year forecast · up to 8 analysts
FYRevenueRangeEPSRangeAnalysts
FY26$736.0M$734.0M – $738.9M$1.87$1.62 – $2.348
FY27$805.6M$799.9M – $814.1M$2.30$2.24 – $2.378
FY28$896.2M$877.4M – $916.5M$2.66$2.09 – $3.088
FY29$1.0B$989.5M – $1.0B$3.04$2.98 – $3.104
FY30$1.1B$1.1B – $1.2B$3.56$3.49 – $3.634

Setup & momentum

Volume, range, and moving-average position — the technical setup driving short-term moves.

Right now

Vol vs 30dToday's traded share volume divided by the average over the prior 30 trading days. ≥3× signals unusual interest; below 1× is quiet.1.0×Today's traded share volume divided by the average over the prior 30 trading days. ≥3× signals unusual interest; below 1× is quiet.
52w rangeWhere the latest close sits between the 52-week low (0%) and high (100%). Above 80% is extended; below 30% is basing or in a downtrend.34%Where the latest close sits between the 52-week low (0%) and high (100%). Above 80% is extended; below 30% is basing or in a downtrend.
vs 50d MALatest close vs the 50-day simple moving average. Positive = short-term trend is up.+5.1%Latest close vs the 50-day simple moving average. Positive = short-term trend is up.
vs 200d MALatest close vs the 200-day simple moving average. Positive = long-term trend is up.+3.9%Latest close vs the 200-day simple moving average. Positive = long-term trend is up.

Float & profile

FloatMid float · 85.5M shFree-float shares — the slice of issued stock actually available to trade. Lower buckets squeeze harder on a catalyst.Traded today0.7% of floatToday's volume as a percent of the free float. Above 5% on a single day is unusually high turnover for the available share count.β0.195-year weekly beta vs the S&P 500. Above 1.5 means the stock typically moves more than the index; below 0.8 moves less.

SEC filings

Material 8-K, 13D, S-3, and 424B5 events from the last 180 days — the filings that actually move the price.

No material 8-K / SC 13D / S-3 / 424B5 filings in the last 180 days.

+ 14 other (8 6-Ks · 2 13Gs · 1 F-X · 1 F-10EF) in window

Recent news

Latest headlines from major outlets, sourced and timestamped — context for whatever just moved.

Descartes Acquires Extensivglobenewswire.com·2d agoK&R International Services Uses Descartes to Help Automate High-Volume EU Ecommerce Import Filingsglobenewswire.com·3d agoDescartes Acquires Taiglobenewswire.com·10d agoDescartes Introduces AI-Powered Image Document Management to Help Accelerate Customs Entry and Shipment Processingglobenewswire.com·16d agoAmundi Grows Position in The Descartes Systems Group Inc. $DSGXdefenseworld.net·28d ago

In themes

Explore the broader themes this ticker is being talked about under.

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