Descartes Systems: Strong Business, But I'm Still Not Paying This Price

Descartes Systems Group (DSGX) remains a Hold as strong fundamentals are offset by a stretched valuation. DSGX benefits from global trade complexity, AI-driven platform enhancements, and rising demand for logistics intelligence amid tariff and shipping disruptions. Q4 revenue grew 15% YoY to $192.8M, with 93% from recurring services and gross margins at 78%; cash flow and EBITDA margins remain robust.