The Descartes Systems Group Inc. research snapshot
DSGX AI stock analysis reads The Descartes Systems Group as a high-quality logistics technology SaaS provider with the largest neutral logistics network, strong recurring revenue, high gross and EBITDA margins, and a long record of profitable growth through acquisitions. At the August 3, 2026 data cutoff, DSGX closed at $75.16 on July 31 with a verified market capitalization near $6.43 billion, rebounding from the 52-week low near $62.55 but still about 39% below the February 2025 all-time closing high of $122.50. This page uses scenario ranges and source checks, not a certain stock price prediction, and is for informational use only.
Current price
$75.16 at the July 31, 2026 close, confirmed across Macrotrends and StockAnalysis; near $78 in intraday trading on August 3
Market cap
$6.43 billion, verified as $75.16 x 85.63 million shares with 0.09% deviation
AI score
66 / 100
Rating
Quality logistics SaaS, recovering from drawdown, premium valuation
Trend status
Rebounding from the 52-week low zone, above the 50-day moving average and just below the 200-day moving average
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Descartes operates the worlds largest neutral logistics network (GLN), connecting roughly 29,000 customers worldwide for shipment messaging, customs compliance, routing, and supply chain visibility, with gross margin near 77% and EBITDA margin near 42%. | High |
| Moat | Moat comes from network effects (GLN), high switching costs from embedded regulatory workflows, regulatory compliance expertise, scale advantages, and a two-decade track record of integrating niche logistics software. | Medium-high |
| Management | The executive team has continued the acquisition strategy that drove the fleet management and last-mile expansion, including the July 2026 Drivin acquisition for about $30 million. Management has delivered consistent profitability, but organic growth remains difficult to isolate. | Medium |
| Financial trend | FY2026 revenue (fiscal year ending January 2026) was $729 million, up 11.98%, with net income of $164 million. Q1 FY2027 revenue was $194 million, up 14.75%, with net income of $48 million, up 33.75%. TTM revenue was $754 million and TTM net income was $176 million. | High |
| Valuation | At the July 31 close of $75.16, DSGX traded at about 37.4x TTM EPS, 27.4x forward EPS, 22.9x TTM free cash flow, and about 8.5x TTM revenue. These multiples reflect a quality premium that has compressed from higher 2024-2025 levels. | Medium-high |
| Technical trend | Technical snapshots are improving. Price has reclaimed the 50-day moving average near $72.25 and sits just below the 200-day moving average near $76.83. RSI near 61 shows recovering momentum after the rebound from the 52-week low. | Low-medium |
| Risk level | Main risks include M&A integration complexity, difficulty measuring organic growth, geopolitical disruption to trade volumes, currency exposure, competition from larger ERP or logistics platforms, and valuation compression. | Medium-high |
| AI confidence | High for descriptive facts and verified calculations, medium for forward scenarios and chart levels. | High data confidence |
| Investment certainty | Medium certainty. The page frames scenarios and monitoring rules, not a buy or sell instruction. | Medium |
DSGX AI stock forecast
The DSGX AI stock forecast uses scenario math around the July 31 close of $75.16 and TTM EPS of $2.01, consistent with the 22.7% three-year EPS growth forecast cited by StockAnalysis. The verified three-year framework produced a bearish area near $50, a base area near $82, and a bullish area near $117. These ranges depend on EPS growth, valuation multiples, and the M&A trajectory.
$105 to $120
More likely if Descartes sustains double-digit revenue growth, EPS compounds near the 20%+ trajectory implied by analyst estimates, recent acquisitions such as Drivin integrate smoothly, trade volumes recover, and the market assigns a forward PE near 30-32x on the stronger growth profile.
$75 to $85
More likely if Descartes compounds EPS in the mid-teens, maintains EBITDA margins near 42%, and investors value the stock around 26-27x forward earnings, roughly in line with the current forward PE and the analyst consensus price target near $99.79.
$45 to $55
More likely if trade volumes decline due to tariffs or recession, M&A integration costs rise, organic growth stalls below high single digits, the GLN network faces pricing pressure, or the multiple compresses toward 18-20x as growth slows.
DSGX AI technical analysis
DSGX AI technical analysis is cautiously improving as of the August 3, 2026 data cutoff. The stock bottomed near the 52-week low of $62.55, rebounded to close at $75.16 on July 31, and reclaimed the 50-day moving average near $72.25 while still testing the 200-day moving average near $76.83. A sustained break above that level would shift the medium-term picture.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $75.16 close, near $78 intraday | The July 31, 2026 close of $75.16 matched across Macrotrends and StockAnalysis, with intraday trading near $78 on August 3. |
| Near support | $72.25 area | The 50-day moving average near $72.25 is the first support level after the rebound. A hold above it keeps the recovery intact. |
| Deeper support | $62.55 to $65 | The 52-week low near $62.55 and the late-July pullback zone around $65.74 represent the next support band if the recovery stalls. |
| Near resistance | $76.83 area | The 200-day moving average near $76.83 is the first meaningful resistance. A close above it would signal a medium-term trend shift. |
| Next resistance | $81 to $88 | The 52-week average price near $81.54 and the 2026 high near $88.62 define the next resistance band above the moving averages. |
| Long-term resistance | $109.00 and $122.50 | The 52-week high of $109.00 and the February 2025 all-time closing high of $122.50 are reference points if a full recovery develops. |
| Momentum | RSI near 61 | StockAnalysis reported a 14-day RSI near 61 at the cutoff, showing recovering momentum after the rebound from oversold levels. |
| Volume | Average volume near 454,000 shares | StockAnalysis reported a 20-day average volume near 453,659 shares, useful context for judging conviction behind any breakout. |
| Volatility | Beta of 0.19 | StockAnalysis reported a five-year beta near 0.19, meaning DSGX tends to move much less than the broader market. |
| Invalidation | Close below $72.25 | A decisive close back below the 50-day moving average near $72.25 would weaken the recovery thesis and point back toward the $62.55 to $65 support band. |
DSGX AI trading strategy
The DSGX AI trading strategy is a rules-based research framework for monitoring a logistics SaaS stock during a recovery from a major drawdown. It is not personal advice and should be paired with fresh chart data, filings, position sizing, and a defined invalidation level.
Watch for DSGX to hold above the 50-day moving average near $72.25 and push through the 200-day moving average near $76.83 on strong volume. A sustained move above $76.83 would suggest the medium-term downtrend from the 2025 high is reversing.
If price closes back below $72.25 on volume, the recovery thesis is invalidated. Tight position sizing is warranted given the ambiguous medium-term picture.
If DSGX pulls back toward the $72.25 or the $65 to $68 zone without a negative fundamental catalyst, compare price action with trade volume trends, Q2 FY2027 results due in September 2026, and M&A commentary before assuming support is durable.
Do not bottom-pick without a defined stop because logistics software stocks can gap on macro, trade policy, or earnings news.
Track organic revenue growth (excluding M&A contributions), EBITDA margin, GLN message volumes, customer count growth, cash flow conversion, and integration metrics for recent acquisitions such as Drivin and the fleet management additions.
Reduce confidence if organic growth falls below high single digits, EBITDA margins compress, or the pace of acquisitions accelerates without improving ROIC trends.
Investment research summary
Descartes helps logistics-intensive companies communicate, comply, and optimize across global supply chains. Customers pay because the GLN network, customs filing, routing, and trade compliance tools reduce friction, errors, and penalties in cross-border logistics.
The moat combines network effects from the GLN, roughly 29,000 customers, high switching costs from embedded customs and regulatory workflows, and scale advantages that would be costly to replicate. Competitors include SAP, Oracle, Manhattan Associates, E2open, and niche logistics software providers.
The thesis fails if Descartes cannot demonstrate organic growth independent of acquisitions, if trade volumes shrink due to deglobalization or tariffs, if large ERP vendors embed competing logistics modules, if a major acquisition proves value-destructive, or if the premium valuation multiples permanently compress on slower growth.
The executive team has executed a disciplined acquisition strategy for a decade, adding fleet management and last-mile capabilities including the July 2026 Drivin deal for about $30 million. The key question is whether the acquisition model can keep generating attractive returns or whether integration complexity and diminishing bolt-on opportunities will reduce ROIC over time.
Descartes sits inside long-duration demand for global trade digitization, supply chain visibility, customs automation, and ecommerce logistics, but trade volumes face headwinds from tariff escalation, geopolitical fragmentation, and potential recession. The shift toward nearshoring and supply chain diversification could create both opportunities and disruptions.
At roughly 27.4x forward EPS and 22.9x free cash flow, DSGX trades at a premium to the broad market but below its own historical multiple. Margin of safety improves if the stock holds the moving-average recovery and compounds EPS as analyst estimates suggest, or narrows if organic growth disappoints and the multiple compresses.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| DSGX price | $75.16 close on July 31, 2026, matching across Macrotrends and StockAnalysis; near $78 intraday on August 3 | Macrotrends / StockAnalysis quote snapshot | August 3, 2026 |
| Market capitalization | $6.43 billion, verified as $75.16 x 85.63 million shares with 0.09% deviation | financial_rigor.py market cap verification | August 3, 2026 |
| FY2026 revenue (fiscal year ending January 2026) | $729 million, cross-validated at 0.00% deviation (Macrotrends 729 vs StockAnalysis 728.99) | Macrotrends / StockAnalysis financials | August 3, 2026 |
| FY2026 net income | $164 million, cross-validated at 0.07% deviation (Macrotrends 164 vs StockAnalysis 163.77) | Macrotrends / StockAnalysis financials | August 3, 2026 |
| Q1 FY2027 results (quarter ending April 30, 2026) | $194 million revenue (+14.75% YoY), net income $48 million (+33.75% YoY), EPS $0.55, reported June 3, 2026 | Macrotrends quarterly financials | August 3, 2026 |
| TTM revenue and EPS | TTM revenue $754 million (+12.79%), TTM EPS $2.01, cross-validated at 0.00% deviation | Macrotrends / StockAnalysis statistics | August 3, 2026 |
| Cash and debt | $376.98 million cash, $8.13 million debt, net cash $368.85 million ($4.29 per share) | StockAnalysis balance sheet | August 3, 2026 |
| Valuation verification | PE 37.4x TTM, PB 3.96x, P/FCF 22.9x, FCF yield 4.36%, forward PE 27.44, EV/EBITDA 18.98 | financial_rigor.py verify-valuation / StockAnalysis | August 3, 2026 |
| Analyst consensus | Buy rating from 15 analysts, average price target $99.79; CIBC raised its target to $118 with an Outperformer rating after Q1 FY2027 | StockAnalysis analyst summary / news feed | August 3, 2026 |
| Technical snapshot | 52-week low $62.55, 52-week high $109.00, all-time closing high $122.50, 50-day MA $72.25, 200-day MA $76.83, RSI near 61, beta 0.19 | Macrotrends / StockAnalysis statistics | August 3, 2026 |
| Recent corporate activity | July 6, 2026 Drivin acquisition for about $30 million upfront (last-mile delivery, Latin America); July 29, 2026 AI-enabled digital brokerage partnership with Forefront Global Logistics | StockAnalysis news feed / GlobeNewswire | August 3, 2026 |
This page is an informational research tool only and is not investment advice, financial advice, or a recommendation to buy or sell DSGX stock. Forecast scenarios are based on available public data, technical snapshots, and stated assumptions as of the data cutoff date and may be wrong. Always verify current filings, prices, risks, and personal suitability before making financial decisions.
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