Descartes Systems (DSGX) Reports Q2 Earnings: What Key Metrics Have to Say

Core Insights - Descartes Systems (DSGX) reported revenue of $179.82 million for the quarter ended July 2025, marking a year-over-year increase of 10% and exceeding the Zacks Consensus Estimate by 1.46% [1] - The earnings per share (EPS) for the same period was $0.43, which is a slight increase from $0.40 a year ago, but fell short of the consensus estimate of $0.49, resulting in an EPS surprise of -12.24% [1] Revenue Breakdown - Services revenue was $166.8 million, surpassing the average estimate of $161.66 million by three analysts, reflecting a year-over-year increase of 14.1% [4] - License revenue was reported at $0.2 million, significantly below the average estimate of $1.28 million, indicating a year-over-year decline of 85.7% [4] - Professional services and other revenue totaled $12.8 million, which was below the average estimate of $14.3 million, representing a year-over-year decrease of 19% [4] Stock Performance - Over the past month, shares of Descartes Systems have returned -8.6%, contrasting with the Zacks S&P 500 composite's increase of 3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]