Core Viewpoint - Descartes Systems Group Inc. is highlighted as a strong logistics-tech stock, with an upgrade from Raymond James to 'Outperform' and a price target of $118, indicating a favorable valuation setup as shares are near the bottom of their 10-year EV/EBITDA range [1]. Financial Performance - In Q3 FY26, Descartes reported revenue of $187.7 million, an increase from $168.3 million year-over-year, with net income at $43.9 million and adjusted EBITDA rising to $85.5 million [3]. - The company experienced a rebound in services organic growth, which rose to approximately 7% on a constant currency basis, while overall organic growth was around 2% due to ongoing softness in hardware and professional services [2]. Operational Metrics - Descartes boasts a gross margin of approximately 76%, an adjusted EBITDA margin of 46%, and a free cash flow conversion rate of 86%, indicating strong operational execution [3]. - Despite macroeconomic pressures affecting transactional revenues, the company's strong margin profile and efficient cash flow conversion position it well for a recovery in freight volumes [2]. Company Overview - Descartes Systems Group Inc. is a Canadian logistics technology company that provides supply chain management and route optimization solutions to enterprises globally [4].