08:52 AM EDT, 08/29/2025 (MT Newswires) -- Descartes Systems Group ( DSGX ) is expected to report a slight beat in fiscal Q2 despite the "choppy" global trade environment, RBC said in an earnings preview Friday.
The brokerage said it believes that the company's fiscal Q2 constant currency organic growth is likely in line with RBC's 0.2% estimate, above the 0% implied by the company's baseline but still lower than the 1.9% in Q1.
Though organic growth is likely to slow, RBC said it expects the company's robust pace of acquisitions and continued operating expenses discipline to drive sustained double-digit adjusted earnings before interest, taxes, depreciation and amortization growth.
The firm said Descartes is likely to continue to compound capital via acquisitions and organic growth. Descartes is set to report its fiscal Q2 earnings results on Sept. 3.
RBC maintained its outperform rating and $126 price target on the stock.