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

Canadian (TSX) Software Industry Analysis

UpdatedJun 16, 2026
DataAggregated Company Financials
Companies78
  • 7D-1.5%
  • 3M14.0%
  • 1Y-32.9%
  • YTD-6.6%

Over the last 7 days, the Software industry has dropped 1.5%, driven by a pullback from Constellation Software of 1.9%. In contrast, Xanadu Quantum Technologies has gained 7.4%. However, the industry is down 33% over the past year. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Jun 2026CA$112.5bCA$27.8bCA$894.6m35.2x125.8x4x
Thu, 14 May 2026CA$96.3bCA$27.2bCA$88.8m33.8x1085.1x3.5x
Sat, 11 Apr 2026CA$89.8bCA$26.9b-CA$104,497,599.7333.7x-859.6x3.3x
Mon, 09 Mar 2026CA$105.7bCA$26.1bCA$60.6m39.7x1745.1x4.1x
Wed, 04 Feb 2026CA$94.0bCA$25.9bCA$190.0m36.7x494.8x3.6x
Fri, 02 Jan 2026CA$120.3bCA$26.1bCA$145.1m38.4x829.2x4.6x
Sun, 30 Nov 2025CA$125.3bCA$26.5bCA$148.0m52.7x846.9x4.7x
Tue, 28 Oct 2025CA$139.7bCA$25.6bCA$255.8m55.4x546x5.5x
Thu, 25 Sep 2025CA$144.1bCA$25.4bCA$248.0m56.9x581.1x5.7x
Sat, 23 Aug 2025CA$153.8bCA$25.3bCA$238.5m55.9x644.9x6.1x
Mon, 21 Jul 2025CA$170.3bCA$24.3bCA$176.1m55x966.8x7x
Wed, 18 Jun 2025CA$159.8bCA$24.2bCA$156.0m40.4x1024.3x6.6x
Fri, 16 May 2025CA$165.3bCA$24.5bCA$926.6m34x178.4x6.7x
Sun, 13 Apr 2025CA$147.8bCA$23.9bCA$440.8m27.6x335.3x6.2x
Tue, 11 Mar 2025CA$159.5bCA$25.0bCA$86.9m25.5x1834.7x6.4x
Thu, 06 Feb 2025CA$160.4bCA$23.9b-CA$2,397,985,684.7242.9x-66.9x6.7x
Sat, 04 Jan 2025CA$151.8bCA$24.1b-CA$2,417,390,280.6742.3x-62.8x6.3x
Mon, 02 Dec 2024CA$158.6bCA$23.5b-CA$2,337,696,650.4440.9x-67.9x6.8x
Wed, 30 Oct 2024CA$142.9bCA$22.5b-CA$2,529,532,617.9840.7x-56.5x6.4x
Fri, 27 Sep 2024CA$144.0bCA$21.9b-CA$2,487,025,124.5839.8x-57.9x6.6x
Sun, 25 Aug 2024CA$142.9bCA$22.0b-CA$2,514,582,192.9238.6x-56.8x6.5x
Tue, 23 Jul 2024CA$141.3bCA$21.5b-CA$3,413,881,149.8749x-41.4x6.6x
Thu, 20 Jun 2024CA$130.1bCA$21.7b-CA$3,387,451,641.5839x-38.4x6x
Sat, 18 May 2024CA$129.9bCA$21.5b-CA$3,427,014,060.5440.7x-37.9x6x
Mon, 15 Apr 2024CA$127.6bCA$21.1b-CA$4,274,681,561.0831.9x-29.8x6.1x
Wed, 13 Mar 2024CA$125.2bCA$20.6b-CA$4,785,270,148.4126.6x-26.2x6.1x
Fri, 09 Feb 2024CA$120.9bCA$19.6b-CA$3,926,321,625.2826x-30.8x6.2x
Sun, 07 Jan 2024CA$113.7bCA$19.8b-CA$3,952,044,280.0026.7x-28.8x5.7x
Tue, 05 Dec 2023CA$112.1bCA$20.0b-CA$4,144,280,146.0026.9x-27.1x5.6x
Thu, 02 Nov 2023CA$98.2bCA$19.7b-CA$4,242,784,133.0071.5x-23.2x5x
Sat, 30 Sep 2023CA$100.0bCA$19.3b-CA$4,177,663,221.0054.9x-23.9x5.2x
Mon, 28 Aug 2023CA$102.1bCA$19.4b-CA$4,166,981,992.0057.6x-24.5x5.3x
Wed, 26 Jul 2023CA$104.5bCA$18.1b-CA$3,851,310,765.0072.4x-27.1x5.8x
Fri, 23 Jun 2023CA$99.7bCA$17.8b-CA$3,928,784,451.0069.4x-25.4x5.6x
Price to Earnings Ratio

-25.4x


Total Market Cap: CA$99.7bTotal Earnings: -CA$3,928,784,451.00Total Revenue: CA$17.8bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Software Industry Price to Earnings3Y Average 152.4x202420252026
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 industry is trading at a PE ratio of 126x which is lower than its 3-year average PE of 152x.
  • The 3-year average PS ratio of 5.7x is higher than the industry's current PS ratio of 4.0x.
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 Market2.13%
Tech0.40%
Software-1.50%
Systems Software2.30%
Application Software-1.82%
Industry PE
  • Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 104x.
    • Analysts are expecting annual earnings growth of 18.8%, which is lower than the prior year's growth of 98.5% per year.
  • Investors are most pessimistic about the Application Software industry, which is trading below its 3-year average of 150x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 20% over the next 5 years.
  • This is better than its past earnings decline of 5.4% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 19% 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
XNDU Xanadu Quantum TechnologiesCA$19.557.4%
+CA$403.0m		n/aPS617.8x
BTQ BTQ TechnologiesCA$7.5332.1%
+CA$258.6m		85.9%PS16246.1x
LSPD Lightspeed CommerceCA$13.562.3%
+CA$41.3m		-12.1%PS1.1x
BB BlackBerryCA$12.970.3%
+CA$23.4m		119.5%PE102.1x
ACT Aduro Clean TechnologiesCA$20.632.5%
+CA$16.9m		80.8%PS2876.7x

Latest News

TCS
CA$36.69
Tecsys
7D
-2.2%
1Y
-8.6%
ENGH
CA$15.77
Enghouse Systems
7D
-11.9%
1Y
-30.6%
ACT
CA$20.63
Aduro Clean Technologies
7D
2.5%
1Y
80.8%
CVO
CA$4.21
Coveo Solutions
7D
2.9%
1Y
-43.0%
Narrative Update • Jun 13

CVO: AI Partnerships And Commerce Expansion Will Support Future Repricing

Analysts have trimmed their fair value estimate for Coveo Solutions to about CA$10.01 from CA$11.08, in line with recent cuts to Street price targets into the CA$6 to CA$9 range as they update assumptions on growth, margins and future P/E multiples. Analyst Commentary Bullish analysts are trimming their price targets but still see room for upside compared with where the stock has recently been trading, which keeps the broader research tone constructive despite the headline cuts.
DND
CA$1.82
Dye & Durham
7D
-20.2%
1Y
-81.6%
LSPD
CA$13.56
Lightspeed Commerce
7D
2.3%
1Y
-12.1%
Narrative Update • Jun 12

LSPD: Share Repurchases And AI Rollout Will Support Medium Term Repricing

Narrative Update: Lightspeed Commerce Price Target Reset Analysts have lowered the central price target for Lightspeed Commerce to CA$25.00 from CA$29.25, reflecting updated models that factor in softer medium term growth assumptions, lower projected profit margins, a higher discount rate, and a much higher assumed future P/E multiple, alongside mixed views on the impact of recent divestitures and guidance. Analyst Commentary Recent research on Lightspeed Commerce shows a cluster of reduced price targets, but the tone is not uniformly negative.
BB
CA$12.97
BlackBerry
7D
0.3%
1Y
119.5%
CSU
CA$2,905.25
Constellation Software
7D
-1.9%
1Y
-40.0%
XNDU
CA$19.55
Xanadu Quantum Technologies
7D
7.4%
1Y
n/a
DCBO
CA$25.32
Docebo
7D
1.9%
1Y
-31.2%
Narrative Update • Jun 07

DCBO: Recalibrated Earnings Assumptions And Platform Rollout Are Expected To Reward Patience

Analysts have adjusted their CA$ price target on Docebo to reflect revised assumptions around discount rates, revenue growth, profit margin and future P/E. This suggests a recalibration of the stock's risk and earnings profile rather than a major shift in overall fair value.
KXS
CA$155.59
Kinaxis
7D
-6.5%
1Y
-22.4%
Narrative Update • Jun 06

KXS: AI Supply Chain Execution And Orchestration Will Drive Future Upside

Analyst price targets for Kinaxis have increased to CA$206.88 from CA$203.80, as analysts cite recent target raises from CIBC, RBC Capital, and BMO Capital, which more than offset reductions from Stifel and Rothschild & Co Redburn. Analyst Commentary Recent price target changes for Kinaxis give a mixed but useful snapshot of how the stock is being viewed on execution, growth potential, and valuation.
ABXX
CA$42.28
Abaxx Technologies
7D
-12.4%
1Y
280.9%
DSG
CA$101.33
Descartes Systems Group
7D
-3.5%
1Y
-23.8%
YAI
CA$0.93
Yocale.Ai
7D
22.4%
1Y
n/a
LMN
CA$22.40
Lumine Group
7D
-1.1%
1Y
-50.4%
BTQ
CA$7.53
BTQ Technologies
7D
32.1%
1Y
85.9%