Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Canadian (TSX) Software Industry Analysis

UpdatedFeb 15, 2026
DataAggregated Company Financials
Companies79
  • 7D-3.7%
  • 3M-25.6%
  • 1Y-46.9%
  • YTD-26.1%

Over the last 7 days, the Software industry has dropped 3.7%, driven by Constellation Software declining 3.2%. The industry has fallen 47% in the last year. As for the next few years, earnings are expected to grow by 24% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 15 Feb 2026CA$87.7bCA$25.9bCA$159.0m35x552x3.4x
Tue, 13 Jan 2026CA$122.2bCA$26.3bCA$147.8m49x827x4.6x
Thu, 11 Dec 2025CA$123.3bCA$26.2bCA$151.7m52.2x813.2x4.7x
Sat, 08 Nov 2025CA$124.2bCA$25.9bCA$118.5m54x1048.2x4.8x
Mon, 06 Oct 2025CA$143.8bCA$25.5bCA$259.7m54.7x553.5x5.6x
Wed, 03 Sep 2025CA$156.5bCA$25.2bCA$237.6m69.8x658.4x6.2x
Fri, 01 Aug 2025CA$167.6bCA$24.5bCA$166.6m50.7x1006x6.8x
Sun, 29 Jun 2025CA$164.9bCA$24.3bCA$191.7m45.6x860.3x6.8x
Tue, 27 May 2025CA$162.3bCA$24.3bCA$166.7m34.7x973.9x6.7x
Thu, 24 Apr 2025CA$151.3bCA$24.0bCA$439.5m29.7x344.4x6.3x
Sat, 22 Mar 2025CA$151.4bCA$24.7bCA$89.5m26.6x1690.5x6.1x
Mon, 17 Feb 2025CA$163.9bCA$23.8b-CA$2,307,848,099.5028.7x-71x6.9x
Wed, 15 Jan 2025CA$146.3bCA$24.0b-CA$2,404,889,701.7240.6x-60.8x6.1x
Fri, 13 Dec 2024CA$158.2bCA$23.8b-CA$2,363,187,335.9843.3x-67x6.6x
Sun, 10 Nov 2024CA$148.4bCA$23.2b-CA$2,319,705,220.8743.7x-64x6.4x
Tue, 08 Oct 2024CA$143.3bCA$22.1b-CA$2,480,359,571.3342x-57.8x6.5x
Thu, 05 Sep 2024CA$140.1bCA$21.9b-CA$2,493,934,278.1242.6x-56.2x6.4x
Sat, 03 Aug 2024CA$140.9bCA$21.7b-CA$3,387,488,387.0144.2x-41.6x6.5x
Mon, 01 Jul 2024CA$135.1bCA$21.3b-CA$3,438,889,238.2942.8x-39.3x6.3x
Wed, 29 May 2024CA$130.3bCA$21.6b-CA$3,421,992,438.9356.4x-38.1x6x
Fri, 26 Apr 2024CA$128.3bCA$20.9b-CA$4,249,765,602.7745.9x-30.2x6.1x
Sun, 24 Mar 2024CA$123.9bCA$20.8b-CA$4,812,410,606.7529.2x-25.7x6x
Tue, 20 Feb 2024CA$122.7bCA$19.8b-CA$2,760,829,945.9124.5x-44.4x6.2x
Thu, 18 Jan 2024CA$120.1bCA$20.0b-CA$3,986,623,848.0026.1x-30.1x6x
Sat, 16 Dec 2023CA$116.3bCA$19.9b-CA$4,048,610,716.0026.5x-28.7x5.8x
Mon, 13 Nov 2023CA$106.5bCA$20.4b-CA$4,250,239,406.0046.2x-25x5.2x
Wed, 11 Oct 2023CA$100.9bCA$19.3b-CA$4,176,338,147.0055.3x-24.2x5.2x
Fri, 08 Sep 2023CA$103.3bCA$19.5b-CA$4,115,828,254.0055.8x-25.1x5.3x
Sun, 06 Aug 2023CA$101.5bCA$18.6b-CA$3,768,399,072.0058.5x-26.9x5.5x
Tue, 04 Jul 2023CA$104.1bCA$18.2b-CA$3,683,149,792.0074.3x-28.3x5.7x
Thu, 01 Jun 2023CA$99.8bCA$18.3b-CA$4,097,466,824.0079.7x-24.4x5.5x
Sat, 29 Apr 2023CA$97.9bCA$17.4b-CA$3,296,323,549.0051.2x-29.7x5.6x
Mon, 27 Mar 2023CA$91.9bCA$16.6b-CA$2,584,079,360.0037.6x-35.6x5.5x
Wed, 22 Feb 2023CA$89.0bCA$16.4b-CA$2,461,858,892.0035.9x-36.2x5.4x
Price to Earnings Ratio

-36.2x


Total Market Cap: CA$89.0bTotal Earnings: -CA$2,461,858,892.00Total Revenue: CA$16.4bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Software Industry Price to Earnings3Y Average 205.4x202420252026
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 552x which is higher than its 3-year average PE of 205x.
  • The 3-year average PS ratio of 5.9x is higher than the industry's current PS ratio of 3.4x.
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 17% 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 Market1.93%
Tech-6.09%
Software-3.72%
Systems Software-1.57%
Application Software-3.82%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 181x.
    • Analysts are expecting annual earnings growth of 23.6%, which is higher than its past year's earnings growth of 1.7% 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 71.2x.
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$44.052.4%
+CA$38.5m		353.2%PS1988.1x
RAIL Railtown AI TechnologiesCA$0.5240.5%
+CA$29.9m		11.8%PE-19x
CYBE CyberCatch HoldingsCA$2.1660.0%
+CA$23.4m		260.0%PS176x
IMP Intermap TechnologiesCA$1.878.7%
+CA$10.9m		-32.2%PS6.1x
NDA Neptune Digital AssetsCA$0.8410.5%
+CA$10.3m		-54.3%PS62.6x

Latest News

TOI
CA$85.28
Topicus.com
7D
-10.0%
1Y
-42.2%
LMN
CA$18.30
Lumine Group
7D
-8.5%
1Y
-53.4%
CMG
CA$4.05
Computer Modelling Group
7D
-11.4%
1Y
-52.6%
SPAI
CA$1.15
Sparc Al
7D
32.2%
1Y
411.1%
KXS
CA$123.77
Kinaxis
7D
-2.9%
1Y
-24.1%

KXS: AI Agent Platform And New CEO Will Support Future Upside

Analysts have trimmed their fair value and price target assumptions for Kinaxis, with one firm lowering its target by CA$40. This reflects slightly higher discount rates and modestly adjusted expectations for growth and valuation multiples.
LSPD
CA$12.25
Lightspeed Commerce
7D
-3.2%
1Y
-36.1%
RAIL
CA$0.52
Railtown AI Technologies
7D
40.5%
1Y
11.8%
ABXX
CA$44.05
Abaxx Technologies
7D
2.4%
1Y
353.2%
CSU
CA$2,356.67
Constellation Software
7D
-3.2%
1Y
-52.2%
DSG
CA$89.57
Descartes Systems Group
7D
-1.8%
1Y
-45.8%

DSG: Freight Headwinds And Buyback Plan Will Shape Bullish Upside Potential

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.
ENGH
CA$17.26
Enghouse Systems
7D
-3.8%
1Y
-36.3%

AI Monetization And M&A Constraints Will Shape A Cautious Long Term Outlook

Catalysts About Enghouse Systems Enghouse Systems provides software and services across contact centers, networks and transportation, with a focus on recurring SaaS and maintenance revenue. What are the underlying business or industry changes driving this perspective?
BITF
CA$2.93
Bitfarms
7D
0.3%
1Y
46.5%

BITF: Liquidity Progress And Clearer Crypto Rules Will Support Future Expansion

Narrative Update: Bitfarms Analyst Price Target Shift Analysts have trimmed their price target on Bitfarms by a small amount to reflect increased focus on liquidity risk and a less supportive regulatory backdrop for crypto, while keeping only minor adjustments to the discount rate, revenue growth, profit margin, and future P/E assumptions. Analyst Commentary Recent research commentary on Bitfarms has shifted toward risk control, with a particular focus on liquidity and the policy backdrop for crypto.
NDA
CA$0.84
Neptune Digital Assets
7D
10.5%
1Y
-54.3%
IMP
CA$1.87
Intermap Technologies
7D
8.7%
1Y
-32.2%

Intermap Technologies Corporation's (TSE:IMP) Stock Retreats 25% But Revenues Haven't Escaped The Attention Of Investors

Jan 10
Intermap Technologies Corporation's (TSE:IMP) Stock Retreats 25% But Revenues Haven't Escaped The Attention Of Investors
CYBE
CA$2.16
CyberCatch Holdings
7D
60.0%
1Y
260.0%
BEW
CA$0.96
BeWhere Holdings
7D
10.3%
1Y
39.1%