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Software - Application · Technology · Fiscal year ends Jan 31
Descartes Systems reported revenue of $729M in the fiscal year ended Jan 2026, up 12.0% from the year before. Operating income was $210M, an operating margin of 28.8%, and net income was $164M. Operating cash flow of $266M less capital expenditure of $6M left free cash flow of $261M.
Ranks among the 83 software - application companies we cover (1st = best; for debt, the least indebted). Green = top third, red = bottom third.
Last 5 fiscal years
| Fiscal year | Jan 2021 | Jan 2022 | Jan 2024 | Jan 2025 | Jan 2026 |
|---|---|---|---|---|---|
| Revenue | 349 | 425 | 573 | 651 | 729 |
| Cost of revenue | 89.9 | 102 | 138 | 159 | 167 |
| Gross profit | 259 | 323 | 435 | 492 | 562 |
| Research & development | 54.1 | 62.6 | 84.1 | 95.5 | 105 |
| Selling, general & admin | 75.1 | 91.3 | 126 | 139 | 155 |
| Operating income | 71.4 | 103 | 143 | 181 | 210 |
| Interest expense | 1.2 | 1.1 | 1.4 | 1.0 | 1.0 |
| Pre-tax income | 70.4 | 103 | 151 | 192 | 217 |
| Income tax | 18.3 | 16.3 | 35.2 | 48.4 | 53.3 |
| Net income | 52.1 | 86.3 | 116 | 143 | 164 |
| Diluted EPS | 0.61 | 1.00 | 1.34 | 1.64 | 1.87 |
| Diluted shares | 85.8 | 86.2 | 86.8 | 87.3 | 87.6 |
| Fiscal year | Jan 2021 | Jan 2022 | Jan 2024 | Jan 2025 | Jan 2026 |
|---|---|---|---|---|---|
| Cash & equivalents | 134 | 213 | – | 236 | 357 |
| Receivables | 37.2 | 41.7 | – | 54.0 | 64.8 |
| Inventory | 0.4 | 0.9 | – | 0.7 | 0.1 |
| Current assets | 203 | 292 | – | 353 | 482 |
| Net PP&E | 12.1 | 10.8 | – | 12.5 | 13.5 |
| Goodwill | 565 | 609 | 760 | 925 | 1,026 |
| Total assets | 1,063 | 1,185 | – | 1,647 | 1,896 |
| Payables | 8.0 | 10.6 | – | 20.7 | 20.9 |
| Deferred revenue | 49.9 | 56.8 | 86.0 | 105 | 119 |
| Current liabilities | 104 | 133 | – | 217 | 223 |
| Total liabilities | 152 | 186 | – | 262 | 277 |
| Shareholders' equity | 911 | 1,000 | 1,238 | 1,385 | 1,619 |
| Backlog (remaining obligations) | – | 367 | – | – | 647 |
| Fiscal year | Jan 2021 | Jan 2022 | Jan 2024 | Jan 2025 | Jan 2026 |
|---|---|---|---|---|---|
| Operating cash flow | 131 | 176 | 208 | 219 | 266 |
| Capital expenditure | 3.8 | 4.8 | 5.6 | 6.7 | 5.7 |
| Free cash flow | 127 | 171 | 202 | 213 | 261 |
| Depreciation & amortisation | 5.8 | 5.1 | 5.5 | 5.6 | 5.9 |
| Stock-based compensation | 6.3 | 11.0 | 16.5 | 20.0 | 20.9 |
| Acquisitions | 48.4 | 90.3 | – | – | – |
| Share buybacks | – | – | – | – | 0.9 |
| Fiscal year | Jan 2021 | Jan 2022 | Jan 2024 | Jan 2025 | Jan 2026 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 21.8% | 34.9% | 13.6% | 12.0% |
| Operating income growth (YoY) | – | 44.9% | 38.1% | 26.8% | 15.9% |
| EPS growth (YoY) | – | 63.9% | 34.0% | 22.4% | 14.0% |
| Gross margin | 74.2% | 76.0% | 75.9% | 75.6% | 77.1% |
| Operating margin | 20.5% | 24.4% | 24.9% | 27.8% | 28.8% |
| Net margin | 14.9% | 20.3% | 20.2% | 22.0% | 22.5% |
| Return on equityBlank when equity is negative | 5.7% | 8.6% | 9.4% | 10.3% | 10.1% |
| ROCEEBIT ÷ (assets − current liabilities) | 7.4% | 9.8% | – | 12.7% | 12.6% |
| Free cash flow margin | 36.6% | 40.3% | 35.3% | 32.6% | 35.7% |
| Cash conversion (CFO ÷ net income) | 2.52x | 2.04x | 1.79x | 1.53x | 1.63x |
| Receivable days | 39 | 36 | – | 30 | 32 |
| Inventory days | 2 | 3 | – | 2 | 0 |
| Payable days | 32 | 38 | – | 48 | 46 |
| Interest cover | 60.2x | 92.1x | 105x | 180x | 217x |
| Current ratio | 1.95x | 2.19x | – | 1.62x | 2.16x |
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.