Synthetic Intelligence (AI) is all over the place today. You see it in your smartphone, your on-line buying recommendations, and even behind the scenes in main industries like logistics and healthcare. Whereas some AI shares get all the thrill, others are busy creating scalable, real-world options.
And in 2025, one Canadian AI-focused inventory, Descartes Techniques Group (TSX:DSG), has caught my eye as a result of it’s doing simply that. Though DSG inventory is at the moment down 21% from its 52-week highs, I really suppose that’s what makes it so fascinating proper now. Let me clarify why this under-the-radar AI inventory might turn out to be a game-changer in your portfolio over the long term.
A powerful Canadian AI inventory to purchase now
Regardless of being down from its highs, Descartes Techniques might supply much more than meets the attention. Primarily based in Waterloo, this Canadian firm makes a speciality of logistics and provide chain software program, providing AI-powered instruments that assist companies optimize transport, monitor deliveries, automate customs filings, and enhance compliance.
Over the previous 12 months, DSG inventory has risen 2%, but it surely’s nonetheless down 21% from its 52-week excessive. Because of this, this AI inventory at the moment trades at $140.53 per share with a market cap of $12.1 billion.
Rising even when occasions are robust
Regardless of financial uncertainty in world logistics, Descartes delivered double-digit income progress in its newest earnings. For the primary quarter of its fiscal 2026 (led to April 2025), the corporate’s income rose by 12% YoY (year-over-year) to US$168.7 million. Most of that progress got here from its high-margin providers enterprise, which made up practically 93% of its complete income. That exhibits Descartes’ stable buyer retention and rising demand for its providers even in a softer commerce surroundings.
On the profitability aspect, the tech agency’s adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) climbed by 12% YoY to US$75.1 million whereas its web revenue inched up by 4% to US$36.2 million. Nonetheless, increased restructuring prices and a few seasonal softness affected its sequential progress. Nonetheless, Descartes completed the quarter with over US$176 million in money, reflecting robust liquidity.
Actual-world AI use instances are already taking part in out
The place Descartes actually units itself aside is in the way it’s making use of AI to resolve real-world logistics issues. From utilizing machine studying to enhance supply occasions to mechanically refining its route optimization with previous knowledge, its AI-powered system is already delivering outcomes.
Its Route Planner AI Advisor platform makes use of machine studying to recommend optimum configurations for every buyer’s supply community, which helps cut back the guesswork and handbook inputs. It even fine-tunes efficiency by factoring in actual GPS knowledge, automobile kind, visitors patterns, and territory circumstances.
Furthermore, in world commerce intelligence, Descartes has rolled out AI-powered instruments that automate screening, classification, and threat evaluation in cross-border transport. These are the areas which might be solely getting extra complicated because of shifting world commerce insurance policies and sanctions.
The market could also be chasing extra glamorous AI shares proper now, however Descartes is actually constructing stable long-term worth within the background. With a resilient recurring income base, ongoing innovation, and a inventory worth nonetheless 21% under its latest peak, this may very well be an incredible alternative for long-term traders to purchase this magnificent AI inventory at a discount.
