Descartes Systems Group Inc (NASDAQ:DSGX) stock rose 11.72% (As on December 4, 11:36:05 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY26. Revenues were comprised of services revenues of $173.7 million (93% of total revenues), professional services and other revenues of $12.1 million (6% of total revenues) and license revenues of $1.9 million (1% of total revenues). Services revenues were up 16% from $149.7 million in Q3FY25 and up 4% from $166.8 million in Q2FY26. Cash provided by operating activities of $73.4 million, up 22% from $60.1 million in Q3FY25 and up 16% from $63.3 million in Q2FY26. Income from operations of $56.6 million, up 24% from $45.8 million in Q3FY25 and up 17% from $48.2 million in Q2FY26. Net income of $43.9 million, up 20% from $36.6 million in Q3FY25 and up 16% from $38.0 million in Q2FY26.  Net income as a percentage of revenue was 23%, compared to 22% in Q3FY25 and 21% in Q2FY26. Adjusted EBITDA of $85.5 million, up 19% from $72.1 million in Q3FY25 and up 7% from $80.2 million in Q2FY26. Adjusted EBITDA as a percentage of revenues was 46%, compared to 43% and 45% in Q3FY25 and Q2FY26, respectively. At October 31, 2025, Descartes had $278.8 million in cash. Cash increased by $38.2 million in Q3FY26 and $42.7 million in 9MFY26.

Meanwhile, on August 1, 2025, Descartes acquired Finale, Inc., a US-based provider of cloud-based inventory management solutions designed to support ecommerce businesses across their growth lifecycle. The purchase price for the acquisition was approximately $39.2 million, net of cash acquired, which was funded from cash on hand, plus potential performance-based contingent consideration of up to $15.0 million based on Finale achieving revenue-based targets over the first two years post-acquisition.

DSGX in the third quarter of FY26 has reported the adjusted earnings per share of 50 cents, beating the analysts’ estimates for the adjusted earnings per share of 46 cents. The company had reported the adjusted revenue growth of 11 percent to $187.7 million in the third quarter of FY26, beating the analysts’ estimates for revenue of $184.4 million.

On the other hand, the company announced that Edward Gardner, currently Executive Vice President, Corporate Development, will succeed Allan Brett as Descartes’ Chief Financial Officer (“CFO”). Mr. Gardner’s appointment is currently anticipated to be effective in March 2026, following Descartes’ filing of its annual financial statements for its 2026 fiscal year.