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Canadian (TSX) Software Industry Analysis

UpdatedFeb 25, 2026
DataAggregated Company Financials
Companies79
  • 7D3.0%
  • 3M-30.0%
  • 1Y-45.6%
  • YTD-26.2%

The Software industry has been flat over the last week, but Descartes Systems Group has lost 4.0%. As for the longer term, the industry has declined 45% in the last year. Looking forward, earnings are forecast to grow by 25% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 25 Feb 2026CA$88.5bCA$26.1b-CA$58,931,685.2435.6x-1501.2x3.4x
Fri, 23 Jan 2026CA$104.6bCA$26.2bCA$141.3m45.2x740.3x4x
Sun, 21 Dec 2025CA$122.6bCA$26.2bCA$151.1m49.5x811.4x4.7x
Tue, 18 Nov 2025CA$119.6bCA$26.6bCA$219.0m43.5x546.1x4.5x
Thu, 16 Oct 2025CA$144.8bCA$25.7bCA$261.4m55x554.1x5.6x
Sat, 13 Sep 2025CA$154.7bCA$25.4bCA$243.4m65.1x635.3x6.1x
Mon, 11 Aug 2025CA$159.3bCA$25.1bCA$157.8m49.4x1009.7x6.3x
Wed, 09 Jul 2025CA$167.2bCA$24.3bCA$180.2m43.1x927.7x6.9x
Fri, 06 Jun 2025CA$166.3bCA$24.2bCA$159.2m43.4x1044.1x6.9x
Sun, 04 May 2025CA$163.5bCA$23.9bCA$883.9m35.9x185x6.8x
Tue, 01 Apr 2025CA$150.1bCA$24.8bCA$213.9m27.1x702x6x
Thu, 27 Feb 2025CA$159.6bCA$24.1b-CA$2,331,695,554.7227.2x-68.5x6.6x
Sat, 25 Jan 2025CA$155.0bCA$24.0b-CA$2,398,213,427.6940.8x-64.6x6.5x
Mon, 23 Dec 2024CA$151.4bCA$24.0b-CA$2,404,847,263.0341.4x-63x6.3x
Wed, 20 Nov 2024CA$149.9bCA$23.3b-CA$2,335,510,680.5640.1x-64.2x6.4x
Fri, 18 Oct 2024CA$145.7bCA$22.3b-CA$2,508,542,643.4742.4x-58.1x6.5x
Sun, 15 Sep 2024CA$141.8bCA$22.0b-CA$2,508,714,632.6041.1x-56.5x6.4x
Tue, 13 Aug 2024CA$136.4bCA$22.3b-CA$2,562,231,340.0844.7x-53.3x6.1x
Thu, 11 Jul 2024CA$137.7bCA$21.3b-CA$3,374,108,825.3644.5x-40.8x6.5x
Sat, 08 Jun 2024CA$132.0bCA$21.7b-CA$3,407,592,194.7340.1x-38.7x6.1x
Mon, 06 May 2024CA$128.0bCA$20.9b-CA$3,579,940,196.1347.6x-35.7x6.1x
Wed, 03 Apr 2024CA$128.9bCA$20.7b-CA$4,806,659,877.9528.6x-26.8x6.2x
Fri, 01 Mar 2024CA$124.4bCA$19.9b-CA$2,779,017,037.8225.3x-44.8x6.2x
Sun, 28 Jan 2024CA$123.9bCA$19.9b-CA$3,969,717,273.0026.8x-31.2x6.2x
Tue, 26 Dec 2023CA$115.2bCA$19.7b-CA$4,025,371,907.0027.2x-28.6x5.8x
Thu, 23 Nov 2023CA$110.7bCA$20.3b-CA$4,212,231,467.0030.2x-26.3x5.4x
Sat, 21 Oct 2023CA$98.8bCA$19.5b-CA$4,205,331,315.0054.2x-23.5x5.1x
Mon, 18 Sep 2023CA$104.6bCA$19.3b-CA$4,169,592,604.0055.9x-25.1x5.4x
Wed, 16 Aug 2023CA$100.0bCA$19.3b-CA$4,130,279,911.0056.9x-24.2x5.2x
Fri, 14 Jul 2023CA$102.7bCA$18.1b-CA$3,659,298,451.0073x-28.1x5.7x
Sun, 11 Jun 2023CA$99.8bCA$18.0b-CA$3,963,365,928.0077x-25.2x5.5x
Tue, 09 May 2023CA$98.3bCA$17.3b-CA$3,304,485,231.0064.4x-29.7x5.7x
Thu, 06 Apr 2023CA$95.7bCA$16.9b-CA$3,350,356,183.0038.8x-28.6x5.6x
Sat, 04 Mar 2023CA$88.6bCA$16.5b-CA$2,464,953,299.0035.9x-36x5.4x
Price to Earnings Ratio

-36x


Total Market Cap: CA$88.6bTotal Earnings: -CA$2,464,953,299.00Total Revenue: CA$16.5bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Software Industry Price to Earnings3Y Average 197.7x202420252026
Current Industry PE
  • Investors are pessimistic on the Canadian Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The 3-year average PS ratio of 5.9x is higher than the industry's current PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have improved over the last three years.
  • Revenues for these companies have grown 16% per year.
  • This means that more sales are being generated by these companies overall, and subsequently losses are decreasing too.

Industry Trends

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

CA Market2.97%
Tech2.76%
Software3.01%
Application Software3.14%
Systems Software0.044%
Industry PE
  • Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 73.5x.
    • Analysts are expecting annual earnings growth of 33.0%, which is lower than the prior year's growth of 111.0% per year.
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
CSU Constellation SoftwareCA$2.37k4.9%
+CA$2.3b		-51.7%PE53.3x
TOI Topicus.comCA$86.273.0%
+CA$211.7m		-36.7%PE171.2x
LMN Lumine GroupCA$18.924.5%
+CA$210.4m		-50.8%PE36x
BITF BitfarmsCA$3.015.2%
+CA$90.2m		87.0%PS4.8x
HIVE HIVE Digital TechnologiesCA$3.015.6%
+CA$40.5m		-3.2%PS2.2x

Latest News

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Inturai Ventures
7D
-27.8%
1Y
44.4%
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CA$2,368.45
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7D
4.9%
1Y
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Docebo
7D
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1Y
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LSPD
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Lightspeed Commerce
7D
-0.6%
1Y
-33.1%

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CMG
CA$4.02
Computer Modelling Group
7D
4.1%
1Y
-50.1%
BITF
CA$3.01
Bitfarms
7D
5.2%
1Y
87.0%

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Kinaxis
7D
-3.1%
1Y
-22.8%

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HIVE
CA$3.01
HIVE Digital Technologies
7D
5.6%
1Y
-3.2%
ACT
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Aduro Clean Technologies
7D
3.3%
1Y
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TOI
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Topicus.com
7D
3.0%
1Y
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Lumine Group
7D
4.5%
1Y
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RAIL
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Railtown AI Technologies
7D
-11.6%
1Y
5.0%
DSG
CA$87.16
Descartes Systems Group
7D
-2.1%
1Y
-45.2%

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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.
DGX
CA$3.57
Digi Power X
7D
14.1%
1Y
79.4%
BB
CA$4.64
BlackBerry
7D
-0.4%
1Y
-33.8%
IMP
CA$1.51
Intermap Technologies
7D
-18.8%
1Y
-34.6%

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