Multiple Tech Firms Miss Q1 Revenue Estimates Amid Cost Cuts, AI Growth Focus

Descartes Systems (DSGX) reported Q1 fiscal 2026 results with revenues up 11.5% year over year to $168.7 million, though missing consensus estimates amid macroeconomic pressures. The company expanded its transportation management capabilities by acquiring 3GTMS for approximately $112.7 million and initiated a cost-reduction plan targeting a 7% workforce cut to improve efficiency. Dynatrace (DT) posted a 16.9% year-over-year revenue increase to $445.2 million in Q1 CY2025 but fell short of revenue expectations, while its non-GAAP EPS of $0.33 exceeded estimates by 9.1%, driven by strong adoption of its AI-powered observability platform and partner-influenced deals. The company anticipates continued growth from AI-driven observability and platform expansion, backed by optimistic guidance and increased recurring revenue per customer. DXC Technology (DXC) experienced a 6.4% revenue decline to $3.17 billion in Q1 CY2025 but beat EPS estimates by 8.6%, with management focusing on operational overhaul and sales process improvements to stabilize the business amid ongoing challenges. Dollar General (DG) grew Q1 CY2025 sales by 5.3% to $10.44 billion, missing revenue expectations but improving GAAP profit per share; management highlighted gains from store remodels, SKU rationalization, and inventory management, while cautioning about tariff and labor cost pressures ahead.