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Canadian (TSX) Software Industry Analysis

UpdatedJun 14, 2026
DataAggregated Company Financials
Companies78
  • 7D-1.9%
  • 3M16.0%
  • 1Y-32.3%
  • YTD-6.6%

Over the last 7 days, the Software industry has dropped 1.9%, driven by a pullback from Constellation Software of 1.5%. The industry has fallen 32% in the last year. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 14 Jun 2026CA$112.5bCA$27.8bCA$893.5m36.1x125.9x4.1x
Tue, 12 May 2026CA$101.5bCA$26.4b-CA$227,030,684.1435.6x-447.2x3.8x
Thu, 09 Apr 2026CA$90.9bCA$26.9b-CA$144,221,337.8635.3x-630.5x3.4x
Sat, 07 Mar 2026CA$102.1bCA$26.1bCA$59.2m39.7x1725.6x3.9x
Mon, 02 Feb 2026CA$96.1bCA$25.9bCA$120.8m36.2x795.4x3.7x
Wed, 31 Dec 2025CA$120.7bCA$26.0bCA$136.6m48.7x883.8x4.6x
Fri, 28 Nov 2025CA$125.1bCA$26.6bCA$139.2m47.7x898.7x4.7x
Sun, 26 Oct 2025CA$139.7bCA$25.6bCA$255.7m55.9x546.3x5.5x
Tue, 23 Sep 2025CA$154.7bCA$25.3bCA$246.4m60.2x627.7x6.1x
Thu, 21 Aug 2025CA$151.1bCA$25.4bCA$239.1m48x631.8x6x
Sat, 19 Jul 2025CA$171.1bCA$24.3bCA$176.1m55x971.5x7x
Mon, 16 Jun 2025CA$159.6bCA$24.1bCA$154.9m42.6x1030.6x6.6x
Wed, 14 May 2025CA$169.4bCA$24.5bCA$975.4m34.9x173.6x6.9x
Fri, 11 Apr 2025CA$151.6bCA$24.1bCA$443.6m26.9x341.7x6.3x
Sun, 09 Mar 2025CA$159.5bCA$24.9bCA$86.0m26.4x1853.6x6.4x
Tue, 04 Feb 2025CA$159.0bCA$24.3b-CA$2,435,920,928.3341.3x-65.3x6.5x
Thu, 02 Jan 2025CA$151.2bCA$24.0b-CA$2,410,309,753.3042.4x-62.7x6.3x
Sat, 30 Nov 2024CA$157.4bCA$23.4b-CA$2,353,419,977.4646.7x-66.9x6.7x
Mon, 28 Oct 2024CA$142.3bCA$22.4b-CA$2,523,868,954.9242.3x-56.4x6.3x
Wed, 25 Sep 2024CA$144.8bCA$21.8b-CA$2,481,511,703.0240.7x-58.4x6.6x
Fri, 23 Aug 2024CA$142.7bCA$22.1b-CA$2,533,305,948.4339x-56.3x6.5x
Sun, 21 Jul 2024CA$141.3bCA$21.5b-CA$3,409,058,331.2347x-41.5x6.6x
Tue, 18 Jun 2024CA$131.3bCA$21.7b-CA$3,390,661,029.3339.7x-38.7x6.1x
Thu, 16 May 2024CA$128.2bCA$21.4b-CA$3,480,903,954.7950.4x-36.8x6x
Sat, 13 Apr 2024CA$130.4bCA$21.0b-CA$4,268,271,008.3122.6x-30.5x6.2x
Mon, 11 Mar 2024CA$125.2bCA$20.6b-CA$4,785,941,246.5526.6x-26.2x6.1x
Wed, 07 Feb 2024CA$120.1bCA$19.6b-CA$3,932,958,539.2925.6x-30.5x6.1x
Fri, 05 Jan 2024CA$113.6bCA$19.8b-CA$3,949,110,306.0026.4x-28.8x5.7x
Sun, 03 Dec 2023CA$112.1bCA$20.0b-CA$4,160,011,243.0027.8x-27x5.6x
Tue, 31 Oct 2023CA$97.2bCA$19.6b-CA$4,232,916,807.0069.6x-23x5x
Thu, 28 Sep 2023CA$98.7bCA$19.3b-CA$4,177,092,797.0054x-23.6x5.1x
Sat, 26 Aug 2023CA$102.1bCA$19.4b-CA$4,166,593,751.0057.6x-24.5x5.3x
Mon, 24 Jul 2023CA$104.6bCA$18.2b-CA$3,860,894,248.0073.2x-27.1x5.8x
Wed, 21 Jun 2023CA$100.6bCA$17.9b-CA$3,948,596,685.0071.9x-25.5x5.6x
Price to Earnings Ratio

-25.5x


Total Market Cap: CA$100.6bTotal Earnings: -CA$3,948,596,685.00Total Revenue: CA$17.9bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Software Industry Price to Earnings3Y Average 152.2x202420252026
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 4.1x.
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 Market1.46%
Tech0.47%
Software-1.93%
Systems Software-1.14%
Application Software-1.99%
Industry PE
  • Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 103x.
    • 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
LSPD Lightspeed CommerceCA$13.444.6%
+CA$81.3m		-9.4%PS1.1x
DCBO DoceboCA$25.324.9%
+CA$30.2m		-28.9%PE13.4x
DMGI DMG Blockchain SolutionsCA$0.5630.2%
+CA$26.9m		115.4%PS2.8x
TCS TecsysCA$37.244.1%
+CA$20.9m		-7.2%PE90x
ACT Aduro Clean TechnologiesCA$19.992.4%
+CA$15.9m		79.6%PS2787.4x

Latest News

ENGH
CA$15.96
Enghouse Systems
7D
-10.9%
1Y
-29.8%
ACT
CA$19.99
Aduro Clean Technologies
7D
2.4%
1Y
79.6%
LSPD
CA$13.44
Lightspeed Commerce
7D
4.6%
1Y
-9.4%
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$12.86
BlackBerry
7D
-1.7%
1Y
131.3%
CSU
CA$2,924.00
Constellation Software
7D
-1.5%
1Y
-39.5%
XNDU
CA$16.46
Xanadu Quantum Technologies
7D
-8.9%
1Y
n/a
DCBO
CA$25.32
Docebo
7D
4.9%
1Y
-28.9%
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$163.53
Kinaxis
7D
-1.9%
1Y
-18.5%
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$45.84
Abaxx Technologies
7D
-5.0%
1Y
307.5%
DSG
CA$102.02
Descartes Systems Group
7D
-3.1%
1Y
-24.3%
YAI
CA$0.87
Yocale.Ai
7D
16.0%
1Y
n/a
TINY
CA$5.32
Tiny
7D
9.0%
1Y
-25.3%
New Narrative • Jun 02

Subscription Software And Digital Platforms Will Reshape This Asset Light Cash Generative Business

Catalysts About Tiny Tiny is a holding company that acquires and operates asset light, cash generative businesses across software, digital services, creative platforms and consumer brands. What are the underlying business or industry changes driving this perspective?
DMGI
CA$0.56
DMG Blockchain Solutions
7D
30.2%
1Y
115.4%
BTQ
CA$5.80
BTQ Technologies
7D
1.2%
1Y
32.4%
TOI
CA$102.40
Topicus.com
7D
-2.0%
1Y
-39.5%
TCS
CA$37.24
Tecsys
7D
4.1%
1Y
-7.2%