A disappointing earnings report has left investors questioning the future trajectory of Descartes Systems Group.
Descartes Systems Group Inc. (DSG.TO) reported its Q2 earnings on September 10, 2026, revealing an earnings per share (EPS) of 0.5852, which is significantly below the consensus estimate of 0.74. This marks the fourth consecutive quarter that the company has missed analyst expectations, raising concerns about its growth in the competitive logistics software sector.
Recent earnings trend
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Descartes Systems Group Inc
DSG.TO
DSG.TO
Descartes Systems Group Inc
WealthAwesomeMarket cap
$8.69B
P/E
36.5x
52W high
$147.74
52W low
$85.26
1W change
-11.60%
Beta
0.20
Analyst Price Targets
Based on analyst covering DSG
Wall Street analysts forecast DSG stock price to rise 30.8% over the next 12 months.
Consensus
BullishBased on avg. target vs last close (formal rating unavailable for Canadian listings)
Avg. Target
C$128.89
+30.8% Upside
Current Price
C$98.55
Last close
Analyst ratings and price targets are updated periodically. Not financial advice.
Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on DSG's historical volatility
30-Day Vol
36.5%
Annualized
90-Day Vol
44.5%
Annualized
Trend (90d)
-11.7%
Annualized drift
90d Mean
C$94.52
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$97.19 | C$85.69 – C$110.23 |
| 60 trading days | C$95.85 | C$80.22 – C$114.52 |
| 90 trading days | C$94.52 | C$76.01 – C$117.55 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
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Analyst coverage: 4 analyst(s) cover this name; upcoming EPS consensus is available.
| Fiscal period | Report date | Actual EPS | Estimate | Surprise |
|---|---|---|---|---|
| 2026-07-31 | 2026-09-10 | 0.5852 | 0.7400 | -20.9% |
| 2026-04-30 | 2026-06-03 | 0.5600 | 0.6300 | -11.1% |
| 2026-01-31 | 2026-03-11 | 0.5300 | 0.5600 | -5.4% |
| 2025-10-31 | 2025-12-03 | 0.5100 | 0.6100 | -16.4% |
| 2025-07-31 | 2025-09-03 | 0.4800 | 0.5200 | -7.7% |
| 2025-04-30 | 2025-06-04 | 0.4400 | 0.6000 | -26.7% |
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Investor takeaway: With a substantial earnings miss and a trend of underperformance, investors may need to reassess their positions in Descartes. The company faces challenges in meeting growth expectations, which could impact its stock performance moving forward.
20.9% Earnings Miss
Descartes' EPS of 0.5852 fell short of the expected 0.74, marking a 20.9% surprise to the downside and reflecting ongoing struggles in a challenging market environment.
Bull case
The acquisition of Extensiv boosts Descartes' capabilities in the logistics sector, which could drive future growth. The company’s strong market position and ongoing investments in technology might lead to long-term benefits.
Bear case
The continued inability to meet earnings expectations raises concerns about operational efficiency and competitiveness in the market. With a high P/E ratio of 36.49 and declining stock performance, investors may be cautious about further declines.
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