Descartes Earnings: Uncertain Trade and Tariff Environment Should Continue to Boost Performance

We raise our fair value estimate to USD 96/CAD 139 per share from USD 90/CAD 127 for wide-moat Descartes after the firm's fourth-quarter results that were in line with our expectations. Descartes continues to rake in the benefits of increased exogenous shocks and growing complexity in the global supply chain and we think this continues throughout fiscal 2026. This seems especially true to us with heightened uncertainty around trade and tariffs from the Trump administration. While we are impressed with the company’s performance and think it will benefit from the current environment, we think these factors are already baked into the share price, which we view as slightly overvalued.