Descartes Systems Group reported record fiscal 2027 second-quarter revenue of $201.1 million, up 12% from $179.8 million a year earlier and 4% from the preceding quarter.
The logistics technology company also reported record income from operations as increasing services revenue and operating leverage supported growth across its Global Logistics Network.
Services revenue increased 13% to $188.6 million and accounted for approximately 94% of total revenue. Professional services and other revenue totaled $12.4 million, while license revenue was approximately $100,000.
Income from operations increased 36% to $65.5 million from $48.2 million a year earlier and rose 5% sequentially.
Net income increased 32% to $50.0 million from $38.0 million. Net income represented 25% of revenue, compared with 21% in the prior-year quarter.
Diluted EPS increased 33% to $0.57 from $0.43.
Adjusted EBITDA increased 18% to $94.4 million from $80.2 million, while adjusted EBITDA margin expanded to 47% from 45%.
Operating cash flow increased 28% to $81.3 million from $63.3 million in the prior-year period.
For the first half of fiscal 2027, revenue increased to $394.7 million from $348.6 million. Income from operations reached $128.0 million, net income increased to $98.5 million from $74.3 million and diluted EPS rose to $1.13 from $0.85.
First-half adjusted EBITDA increased to $184.1 million from $155.3 million.
Descartes ended July with $401.1 million in cash, an increase of $24.1 million during the second quarter and $44.6 million during the first six months of fiscal 2027.
The company continues investing in data and capabilities across its Global Logistics Network as customers navigate tariffs, regulatory requirements and an increasingly complex global trade environment.
KEY QUOTES:
“Today’s supply chains and logistics operations need to be agile in the face of an increasingly dynamic global trade environment. Having a broad scope of solutions on our Global Logistics Network is imperative to help isolate our customers from complexity, bringing together the data and domain expertise required to efficiently manage the lifecycle of shipments. We will continue to make investments into our business to add more capabilities and data onto our network, and we are looking forward to demonstrating the next generation of Descartes solutions at our Innovation Forum next month.”
Edward J. Ryan, Chief Executive Officer of Descartes
