By Adriano Marchese

Descartes Systems Group shares advanced Thursday after the company said expanding use of artificial intelligence across its logistics network is bearing fruit, lifting performance and drawing more users onto the platform.

Shares traded 9.2% higher at 112.31 Canadian dollars ($80.81).

The logistics-software company is leaning deeper into AI as it builds out an expanding layer of AI agents across its global logistics network, a strategy that helped lift performance and brought more customers to its platform in a quarter marked by a volatile trade climate. Chief Executive Edward Ryan said it is giving the company an edge over competitors.

"These agents have helped contribute to a higher percentage of shipments tracked than our peers, which in turn drives more people to our network," Ryan said in an earnings call Thursday.

Ryan said global shipping remains unsettled by the war in Iran, rising fuel costs and driver shortages, but added that customers are relying more heavily on its proprietary data and automation tools to navigate the disruption. The dynamic helped Descartes deliver a better-than-expected first quarter.

Revenue in the first quarter increased ended April 30 to $193.6 million from $168.7 million a year prior, topping analyst forecasts. Revenue from the services segment, which makes up most of the company's revenue, rose 15% to $180.5 million.

The increased revenue supported a higher profit of $48.5 million, or 55 cents a share, compared with $36.2 million, or 41 cents a share, a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization rose 20% to $89.8 million, also beating expectations.

The strong performance has helped reverse the recent negative investor sentiment that had weighed on software names in recent months where concerns that AI could undermine demand for traditional applications.

Still, shares remain pressured in the year, down about 6.9% since the beginning of 2026 and 29% over the last 52 weeks.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

June 04, 2026 10:58 ET (14:58 GMT)

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