European Investor
11 Sep 2026, 09:19
Descartes Systems Stock Rises 2.6% Premarket After Record Q2 Revenue and Operating Income
Descartes Systems Group shares rose 2.6% in premarket trading Friday after the logistics software company reported record fiscal second-quarter revenue and operating income, supported by continued growth in its services business.
Q2 FY2027 revenue increased 12% year-over-year to $201.1 million and rose 4% sequentially. Services revenue, which accounted for 94% of total revenue, climbed 13% to $188.6 million.
Profitability improved at a faster pace. Operating income jumped 36% to $65.5 million, while net income increased 32% to $50.0 million. Diluted EPS rose 33% to $0.57. Adjusted EBITDA reached $94.4 million, up 18%, with the adjusted EBITDA margin expanding to 47% from 45% a year earlier.
Cash generation was also strong, with operating cash flow increasing 28% to $81.3 million. The premarket gain suggests investors welcomed Descartes’ combination of double-digit revenue growth, expanding profitability and strong cash generation as the company continues investing in its Global Logistics Network.
Descartes Systems Group shares rose 2.6% in premarket trading Friday after the logistics software company reported record fiscal second-quarter revenue and operating income, supported by continued growth in its services business.
Q2 FY2027 revenue increased 12% year-over-year to $201.1 million and rose 4% sequentially. Services revenue, which accounted for 94% of total revenue, climbed 13% to $188.6 million.
Profitability improved at a faster pace. Operating income jumped 36% to $65.5 million, while net income increased 32% to $50.0 million. Diluted EPS rose 33% to $0.57. Adjusted EBITDA reached $94.4 million, up 18%, with the adjusted EBITDA margin expanding to 47% from 45% a year earlier.
Cash generation was also strong, with operating cash flow increasing 28% to $81.3 million. The premarket gain suggests investors welcomed Descartes’ combination of double-digit revenue growth, expanding profitability and strong cash generation as the company continues investing in its Global Logistics Network.
