Global logistics is in focus amid the Iran conflict as oil, fertilizer, and more become stuck in the Strait of Hormuz. Descartes (DSGX) is one of the behind-the-scenes companies coordinating shipping and other logistics for thousands of companies. Its CEO, Ed Ryan, joined Market On Close to discuss their latest quarterly earnings and how they’re navigating the crisis.

Descartes runs the Global Logistics Network, or GLN, which helps companies manage everything from their fleet routing to customs compliance, to even vetting trade partners. On a more granular level, it also offers catalog and warehouse management, purchasing software, and more, creating a one-stop shop for any international company. Their 29K+ clients are diverse across industries, from food to construction materials to energy to manufactured goods.

“We provide the largest database of tariffs and duties in the world,” along with sanctions information, Ryan says, and customers are using their data daily to plot their own routes and see what competitors are doing. “If it gets too complex,” like a few months ago when there was a tariff back-and-forth, shipping companies freeze, halting global trade, Ryan stresses, making such a database invaluable.

Descartes not only compiles regulatory data, but by collecting route data, it can map out the thrumming heart of global trade. Additionally, it commissions studies, such as a recent report on sustainability, framing it as an “opportunity” for retailers. Their 40-year history gives them an established reputation, logistics system, and client base – and now comes AI.

The company is staying on top of new technology, offering AI tools to customers to improve services like route planning and ETA calculations in real time, along with assistance in compliance risk and other segments. AI is helping customers “make better decisions” or correct mistakes, Ryan explains, and says they’ve already seen an impact on their earnings from it.

Obviously, a strong logistics network is essential in these volatile times for global business to continue functioning smoothly. Ryan says Descartes has seen greater use of its tools and services from both the U.S. tariff war and the Iran conflict. With supplies disrupted for potentially years to come, the need for information and logistics services is likely to stay strong.

Turning to the financials, in their 4Q26 report released March 11, Descartes beat estimates on the top and bottom line. They posted EPS of $0.52 (+21% year-over-year) on revenue of $192.8 million (+15% year-over-year). Ryan says their double-digit revenue growth is due to a “comeback in shipping” vs last year and the additional complexities of geopolitics. Adjusted EBITDA was $329.5 million, +16% vs last year and hitting 45% as a percentage of revenues.

As for competition, Ryan isn’t worried. “We’re the largest network in the world,” he notes, and says most competitors are owned by carriers, making Descartes the only “neutral” third party in the business. That gives them client trust in both directions, he argues.

The stock has sold off, possibly caught in the SaaS-pocalypse, and is down 31% year-over-year and 20% year-to-date. It saw a bounce after the earnings report but is trading lower in Friday’s session.

Global shipping has been top-of-mind in geopolitical volatility for years, but also somewhat under the radar as investors focus on the distributors or macro factors. The world’s trade network isn’t going anywhere – it hit a record $35T in 2025, per the UN – but it is undergoing a lot of changes as pressures from tariffs, moving supply chains, and conflict disrupt the flow. Descartes, as an information broker in this turbulent time, may be of interest to investors.

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