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Canadian (TSX) Software Industry Analysis

UpdatedFeb 12, 2026
DataAggregated Company Financials
Companies79
  • 7D-5.2%
  • 3M-27.4%
  • 1Y-46.5%
  • YTD-26.2%

Over the last 7 days, the Software industry has dropped 5.2%, driven by Constellation Software declining 6.4%. On the other hand Abaxx Technologies is actually up 9.8%. The industry has fallen 46% in the last year. Looking forward, earnings are forecast to grow by 24% annually.

Industry Valuation and Performance

Has the Canadian Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 12 Feb 2026CA$91.4bCA$25.8bCA$161.3m36.4x566.4x3.5x
Sat, 10 Jan 2026CA$121.2bCA$26.4bCA$148.7m48.4x814.7x4.6x
Mon, 08 Dec 2025CA$123.4bCA$26.3bCA$157.2m53.2x785x4.7x
Wed, 05 Nov 2025CA$131.2bCA$25.8bCA$274.4m54.3x478.1x5.1x
Fri, 03 Oct 2025CA$139.3bCA$25.5bCA$260.0m54.7x535.8x5.5x
Sun, 31 Aug 2025CA$156.5bCA$25.1bCA$235.8m60.6x663.5x6.2x
Tue, 29 Jul 2025CA$168.9bCA$24.3bCA$165.6m53.9x1020x6.9x
Thu, 26 Jun 2025CA$163.7bCA$24.3bCA$185.3m44.3x883.3x6.7x
Sat, 24 May 2025CA$163.5bCA$24.2bCA$166.1m34.7x984.2x6.7x
Mon, 21 Apr 2025CA$152.4bCA$23.9bCA$446.5m26.9x341.3x6.4x
Wed, 19 Mar 2025CA$152.3bCA$24.7bCA$89.8m26.2x1695.8x6.2x
Fri, 14 Feb 2025CA$162.1bCA$23.8b-CA$2,326,800,724.2929.7x-69.7x6.8x
Sun, 12 Jan 2025CA$146.8bCA$24.1b-CA$2,415,562,875.3140.8x-60.8x6.1x
Tue, 10 Dec 2024CA$158.6bCA$23.7b-CA$2,347,731,646.2943.6x-67.6x6.7x
Thu, 07 Nov 2024CA$144.1bCA$22.6b-CA$2,246,641,121.1956.9x-64.1x6.4x
Sat, 05 Oct 2024CA$142.3bCA$22.0b-CA$2,474,345,795.6841.3x-57.5x6.5x
Mon, 02 Sep 2024CA$143.4bCA$21.8b-CA$2,491,016,511.9244.7x-57.6x6.6x
Wed, 31 Jul 2024CA$145.6bCA$21.6b-CA$3,413,730,007.0544.9x-42.6x6.8x
Fri, 28 Jun 2024CA$132.3bCA$21.7b-CA$3,403,298,021.9243.1x-38.9x6.1x
Sun, 26 May 2024CA$132.5bCA$21.6b-CA$3,427,213,387.5256.7x-38.7x6.1x
Tue, 23 Apr 2024CA$127.7bCA$21.0b-CA$4,275,092,876.2336.2x-29.9x6.1x
Thu, 21 Mar 2024CA$122.7bCA$20.6b-CA$4,779,498,962.4729.5x-25.7x5.9x
Sat, 17 Feb 2024CA$122.7bCA$19.8b-CA$2,764,841,547.3324.5x-44.4x6.2x
Mon, 15 Jan 2024CA$120.1bCA$19.9b-CA$3,963,187,475.0028.5x-30.3x6.1x
Wed, 13 Dec 2023CA$114.3bCA$20.1b-CA$4,087,421,947.0025.3x-28x5.7x
Fri, 10 Nov 2023CA$103.7bCA$19.9b-CA$4,311,961,432.0069.7x-24x5.2x
Sun, 08 Oct 2023CA$101.8bCA$19.4b-CA$4,197,369,549.0055.5x-24.3x5.2x
Tue, 05 Sep 2023CA$105.6bCA$19.4b-CA$4,115,700,218.0059.2x-25.7x5.4x
Thu, 03 Aug 2023CA$101.2bCA$18.4b-CA$3,827,359,611.0059x-26.4x5.5x
Sat, 01 Jul 2023CA$104.1bCA$18.2b-CA$3,684,545,075.0074.3x-28.2x5.7x
Mon, 29 May 2023CA$100.1bCA$18.3b-CA$4,110,770,360.0076.3x-24.3x5.5x
Wed, 26 Apr 2023CA$96.9bCA$17.5b-CA$3,310,339,448.0049.9x-29.3x5.5x
Fri, 24 Mar 2023CA$90.6bCA$16.6b-CA$2,579,021,438.0037.9x-35.1x5.5x
Sun, 19 Feb 2023CA$90.2bCA$16.4b-CA$2,263,819,317.0035.9x-39.9x5.5x
Price to Earnings Ratio

-39.9x


Total Market Cap: CA$90.2bTotal Earnings: -CA$2,263,819,317.00Total Revenue: CA$16.4bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Software Industry Price to Earnings3Y Average 203.8x202420252026
Current Industry PE
  • Investors are optimistic on the Canadian Software industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 566x which is higher than its 3-year average PE of 204x.
  • The 3-year average PS ratio of 5.9x is higher than the industry's current PS ratio of 3.5x.
Past Earnings Growth
  • Total earnings for the Software industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 16% per year.
  • This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.

Industry Trends

Which industries have driven the changes within the Canadian Tech industry?

CA Market1.86%
Tech-2.60%
Software-5.21%
Systems Software2.56%
Application Software-5.52%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 179x.
    • Analysts are expecting annual earnings growth of 23.9%, which is higher than its past year's earnings growth of 6.9% per year.
  • Investors are most pessimistic about the Systems Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 70.5x.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 33% over the next 5 years.
  • However this is lower than its past earnings growth rate of 111% per year.
  • In contrast, the Application Software industry is expected to see its earnings grow by 24% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
ABXX Abaxx TechnologiesCA$45.009.8%
+CA$146.6m		350.0%PS2031x
BITF BitfarmsCA$2.956.1%
+CA$102.3m		52.1%PS4.7x
BTQ BTQ TechnologiesCA$3.9619.3%
+CA$89.6m		15.8%PS980.6x
KXS KinaxisCA$123.102.5%
+CA$83.5m		-26.5%PE71.9x
CVO Coveo SolutionsCA$6.014.0%
+CA$23.1m		-25.0%PS2.9x

Latest News

RAIL
CA$0.47
Railtown AI Technologies
7D
23.7%
1Y
3.3%
CMG
CA$3.89
Computer Modelling Group
7D
-16.2%
1Y
-57.3%
ABXX
CA$45.00
Abaxx Technologies
7D
9.8%
1Y
350.0%
CSU
CA$2,324.32
Constellation Software
7D
-6.4%
1Y
-52.3%
DSG
CA$89.28
Descartes Systems Group
7D
-2.4%
1Y
-45.1%

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Analysts have reduced their average 12 month price target on Descartes Systems Group to CA$134.07, with recent cuts from firms such as Scotiabank, Wolfe Research and Morgan Stanley offset by upgrades that point to a potential inflection in growth and relatively low valuation levels. Analyst Commentary Recent research paints a mixed picture for Descartes Systems Group, with some analysts leaning more positive on the long term setup while others are trimming expectations in the near term.
DCBO
CA$25.58
Docebo
7D
-3.9%
1Y
-56.9%

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Analysts have trimmed their price targets on Docebo, with our fair value estimate moving from about US$46.46 to US$43.15 as they factor in slightly lower profit margin assumptions, a marginally higher discount rate, and updated P/E expectations following recent target cuts at several firms. Analyst Commentary Recent research on Docebo has centered on valuation reset rather than ratings changes, with several firms revising their price targets lower and aligning expectations with updated P/E assumptions and discount rates.
LSPD
CA$12.07
Lightspeed Commerce
7D
-12.3%
1Y
-36.1%

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Analysts have trimmed their price targets on Lightspeed Commerce, leading to a modest reduction in the modeled fair value to about $19.78. This change reflects slightly lower revenue growth assumptions, a higher discount rate, and a lower future P/E, partially offset by improved profit margin expectations.
LMN
CA$19.57
Lumine Group
7D
-4.9%
1Y
-49.8%

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KXS
CA$123.10
Kinaxis
7D
2.5%
1Y
-26.5%

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BITF
CA$2.95
Bitfarms
7D
6.1%
1Y
52.1%

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DGX
CA$2.99
Digi Power X
7D
-11.8%
1Y
-30.5%
TOI
CA$88.13
Topicus.com
7D
-11.8%
1Y
-36.7%

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Feb 04
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BTQ
CA$3.96
BTQ Technologies
7D
19.3%
1Y
15.8%
CVO
CA$6.01
Coveo Solutions
7D
4.0%
1Y
-25.0%

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Analysts have trimmed their price targets on Coveo Solutions by about C$1 to C$2.50, reflecting updated views on fair value, slight adjustments to discount rates, and refreshed assumptions for revenue growth, profit margins, and future P/E levels. Analyst Commentary Recent research updates on Coveo Solutions point to a more measured stance on valuation, with price targets reduced by C$1 to C$2.50.
GOK
CA$0.095
GINSMS
7D
533.3%
1Y
n/a
IMP
CA$1.90
Intermap Technologies
7D
9.8%
1Y
-27.8%

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Jan 10
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