12:12 PM EDT, 03/12/2026 (MT Newswires) -- Descartes Systems Group ( DSGX ) saw accelerating revenue, earnings and margin growth in Q4, supported by its global trade data, AI-enabled shipment tracking and e-commerce import solutions, Morgan Stanley said Thursday.

The investment firm noted that cross-selling and continued market share gains contributed to the company's strong performance.

The brokerage highlighted that Descartes is beginning to realize operating leverage from the earlier fiscal 2026 restructuring which is supporting margin expansion and profitability. EPS and revenue growth outpaced expectations and this reinforces the company's ability to execute across its services.

Despite investor skepticism about the defensibility of software against AI, the firm said Descartes remains well-positioned in the fragmented logistics software market. The company benefits from its mission-critical network, regulatory expertise, transaction-based revenue model, and deep domain knowledge.

Morgan Stanley adjusted its price target on Descartes to $100 from $115 and kept its overweight rating.

Shares of Descartes were up nearly 7% in the session.

Price: 73.68, Change: +4.58, Percent Change: +6.63