Descartes Systems Group Second Quarter 2025 Earnings: Beats Expectations

In This Article:

Descartes Systems Group (TSE:DSG) Second Quarter 2025 Results

Key Financial Results

  • Revenue: US$163.4m (up 14% from 2Q 2024).

  • Net income: US$34.7m (up 23% from 2Q 2024).

  • Profit margin: 21% (up from 20% in 2Q 2024). The increase in margin was driven by higher revenue.

  • EPS: US$0.41 (up from US$0.33 in 2Q 2024).

earnings-and-revenue-growth
earnings-and-revenue-growth

All figures shown in the chart above are for the trailing 12 month (TTM) period

Descartes Systems Group Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) also surpassed analyst estimates by 6.8%.

Looking ahead, revenue is forecast to grow 10.0% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Software industry in Canada.

Performance of the Canadian Software industry.

The company's shares are down 5.2% from a week ago.

Risk Analysis

It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Descartes Systems Group, and understanding it should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.