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

Canadian (TSX) Software Industry Analysis

UpdatedJun 28, 2026
DataAggregated Company Financials
Companies79
  • 7D1.5%
  • 3M20.8%
  • 1Y-35.9%
  • YTD-8.7%

The Software industry is up 1.5% in the last week, with BlackBerry up 34%. In the same time, Xanadu Quantum Technologies was down 15%. However, the industry is down 36% over the past year. As for the next few years, earnings are expected to grow by 20% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 29 Jun 2026CA$110.0bCA$28.1bCA$896.0m33.8x122.8x3.9x
Wed, 27 May 2026CA$108.7bCA$27.4bCA$879.0m35.4x123.6x4x
Fri, 24 Apr 2026CA$99.2bCA$26.6b-CA$101,801,079.9038x-974.2x3.7x
Sun, 22 Mar 2026CA$93.7bCA$27.0b-CA$181,270,089.2538.1x-517.1x3.5x
Tue, 17 Feb 2026CA$87.8bCA$25.9bCA$159.0m35x552.1x3.4x
Thu, 15 Jan 2026CA$119.6bCA$26.3bCA$147.9m47.8x808.3x4.5x
Sat, 13 Dec 2025CA$121.4bCA$26.1bCA$147.4m50.1x823.7x4.6x
Mon, 10 Nov 2025CA$124.1bCA$26.4bCA$184.7m54x672x4.7x
Wed, 08 Oct 2025CA$142.1bCA$25.5bCA$258.3m55.2x550x5.6x
Fri, 05 Sep 2025CA$157.3bCA$25.3bCA$243.8m64.9x645x6.2x
Sun, 03 Aug 2025CA$162.7bCA$24.6bCA$217.7m50x747.4x6.6x
Tue, 01 Jul 2025CA$164.9bCA$24.2bCA$190.0m43x868.2x6.8x
Thu, 29 May 2025CA$164.4bCA$24.4bCA$169.3m43.4x971.3x6.7x
Sat, 26 Apr 2025CA$158.6bCA$23.9bCA$438.7m31.7x361.5x6.6x
Mon, 24 Mar 2025CA$151.2bCA$24.7bCA$89.5m26.6x1688.5x6.1x
Wed, 19 Feb 2025CA$163.9bCA$23.8b-CA$2,310,697,056.8628.3x-70.9x6.9x
Fri, 17 Jan 2025CA$148.9bCA$24.1b-CA$2,411,470,956.1340.9x-61.8x6.2x
Sun, 15 Dec 2024CA$157.4bCA$23.8b-CA$2,366,695,010.2243.2x-66.5x6.6x
Tue, 12 Nov 2024CA$148.4bCA$23.2b-CA$2,321,823,718.5543.7x-63.9x6.4x
Thu, 10 Oct 2024CA$142.6bCA$22.2b-CA$2,493,571,662.2641.7x-57.2x6.4x
Sat, 07 Sep 2024CA$137.6bCA$22.0b-CA$2,504,171,439.8141x-55x6.3x
Mon, 05 Aug 2024CA$136.2bCA$21.8b-CA$3,383,761,039.6344.2x-40.3x6.3x
Wed, 03 Jul 2024CA$135.1bCA$21.3b-CA$3,435,969,856.8743.7x-39.3x6.3x
Fri, 31 May 2024CA$129.7bCA$21.6b-CA$3,404,751,763.7642x-38.1x6x
Sun, 28 Apr 2024CA$128.2bCA$20.9b-CA$4,253,287,409.2747.4x-30.1x6.1x
Tue, 26 Mar 2024CA$123.9bCA$20.8b-CA$4,803,975,565.5328.6x-25.8x6x
Thu, 22 Feb 2024CA$122.5bCA$19.8b-CA$2,776,576,517.0724.1x-44.1x6.2x
Sat, 20 Jan 2024CA$122.4bCA$19.9b-CA$3,970,840,601.0025.6x-30.8x6.1x
Mon, 18 Dec 2023CA$116.1bCA$19.9b-CA$4,048,611,156.0026.5x-28.7x5.8x
Wed, 15 Nov 2023CA$107.4bCA$20.3b-CA$4,220,209,339.0047.8x-25.5x5.3x
Fri, 13 Oct 2023CA$101.3bCA$19.5b-CA$4,204,743,699.0055.5x-24.1x5.2x
Sun, 10 Sep 2023CA$102.1bCA$19.5b-CA$4,104,906,403.0055.8x-24.9x5.2x
Tue, 08 Aug 2023CA$101.6bCA$18.7b-CA$4,435,543,308.0058.5x-22.9x5.4x
Thu, 06 Jul 2023CA$102.9bCA$18.2b-CA$3,703,681,721.0072.9x-27.8x5.6x
Price to Earnings Ratio

-27.8x


Total Market Cap: CA$102.9bTotal Earnings: -CA$3,703,681,721.00Total Revenue: CA$18.2bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Software Industry Price to Earnings3Y Average 154.2x202420252026
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 123x which is lower than its 3-year average PE of 154x.
  • The 3-year average PS ratio of 5.7x is higher than the industry's current PS ratio of 3.9x.
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 Market-0.35%
Tech-1.94%
Software1.50%
Systems Software26.71%
Application Software-0.73%
Industry PE
  • Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 109x.
    • Analysts are expecting annual earnings growth of 23.5%, which is lower than the prior year's growth of 301.3% per year.
  • Investors are most pessimistic about the Application Software industry, which is trading below its 3-year average of 152x.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 24% over the next 5 years.
  • In contrast, the Application 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
BB BlackBerryCA$16.1333.9%
+CA$2.4b		159.7%PE111.5x
CSU Constellation SoftwareCA$2.82k1.6%
+CA$962.3m		-43.5%PE56.7x
KXS KinaxisCA$154.745.7%
+CA$225.6m		-22.9%PE35.3x
LSPD Lightspeed CommerceCA$14.438.6%
+CA$157.1m		-8.4%PS1.1x
DSG Descartes Systems GroupCA$99.831.1%
+CA$95.3m		-28.2%PE34.4x

Latest News

ACT
CA$21.78
Aduro Clean Technologies
7D
2.4%
1Y
65.1%
LSPD
CA$14.43
Lightspeed Commerce
7D
8.6%
1Y
-8.4%
Narrative Update • Jun 26

LSPD: Core Market Execution And 2028 Profit Targets Will Drive Repriced Upside

Analysts have reduced the fair value estimate for Lightspeed Commerce from about CA$20.13 to CA$17.57 as they adjust models for softer profit margin expectations, slightly higher discount rates, and revised revenue growth assumptions following recent price target cuts across several firms. Analyst Commentary Recent research on Lightspeed Commerce reflects a mixed stance, with most firms trimming price targets while reassessing how divestitures, hardware costs, and updated long term goals feed into valuation, execution risk, and growth expectations.
BB
CA$16.13
BlackBerry
7D
33.9%
1Y
159.7%
Narrative Update • Jun 26

BB: QNX And Secure Communications Momentum Will Struggle To Justify Current Premium

BlackBerry's implied fair value has moved from CA$5.68 to CA$10.22 as analysts lift price targets into a CA$9.50 to CA$12.00 range. They cite stronger profitability, higher assumed revenue growth and margins, and a richer future P/E multiple supported by QNX and secure communications momentum.
CSU
CA$2,818.02
Constellation Software
7D
1.6%
1Y
-43.5%
Narrative Update • Jun 26

CSU: Cost Control Execution Will Shape Upside Despite Recent Model Resets

Analysts have trimmed the fair value estimate for Constellation Software to CA$3,280.71 from CA$3,477.92, as recent price target cuts around CA$3,185 to CA$4,500 reflect updated views on expense levels, hardware cost pressures, and refreshed post-earnings models. Analyst Commentary Recent Street research on Constellation Software points to a more cautious tone, with several bearish analysts revising their price targets lower after the Q1 report and model updates.
DSG
CA$99.83
Descartes Systems Group
7D
1.1%
1Y
-28.2%
DND
CA$1.40
Dye & Durham
7D
-23.1%
1Y
-85.3%
DCBO
CA$24.62
Docebo
7D
0.7%
1Y
-36.0%
Narrative Update • Jun 24

DCBO: Platform Expansion And AI Adoption Will Support Long Term Upside Potential

Analysts have modestly adjusted their CA$ price target for Docebo, reflecting slight tweaks to the discount rate and future P/E assumptions, while keeping fair value and key growth and margin inputs essentially unchanged. What's in the News Docebo issued earnings guidance for the quarter ending June 30, 2026, with total revenue projected between US$66.7 million and US$66.9 million.
KXS
CA$154.74
Kinaxis
7D
5.7%
1Y
-22.9%
Narrative Update • Jun 22

KXS: AI Supply Chain Partnerships And Orchestration Will Support Future Upside

Analysts have nudged their fair value estimate for Kinaxis to roughly CA$207 per share, reflecting a modest increase in Street price targets, including CIBC's move to CA$205, as well as updated assumptions for revenue growth, profit margins and future P/E levels. Analyst Commentary Recent Street research on Kinaxis shows a mix of optimism and caution, with several price target revisions in both directions as analysts reassess growth assumptions, execution risks and appropriate P/E levels.
HIVE
CA$5.69
HIVE Digital Technologies
7D
-14.0%
1Y
130.4%
BTQ
CA$7.26
BTQ Technologies
7D
-2.7%
1Y
-5.7%
ENGH
CA$15.94
Enghouse Systems
7D
2.0%
1Y
-30.7%
Analysis Article • Jun 18

Enghouse Systems (TSX:ENGH) Stock Could Be 6.8% Undervalued After Earnings And Dividend Decision

Enghouse Systems earnings and dividend decision in focus Enghouse Systems (TSX:ENGH) has drawn fresh attention after reporting second quarter results and approving a quarterly dividend of $0.31 per share, combining an earnings update with a new income detail for investors. See our latest analysis for Enghouse Systems. At a share price of CA$15.61, Enghouse Systems has seen its 1 month share price return fall 7.96%, and its 1 year total shareholder return decline 27.41%, signalling fading...
CMG
CA$3.50
Computer Modelling Group
7D
-8.1%
1Y
-50.7%
ABXX
CA$29.15
Abaxx Technologies
7D
-11.1%
1Y
129.9%
XNDU
CA$15.84
Xanadu Quantum Technologies
7D
-14.8%
1Y
n/a
LMN
CA$21.50
Lumine Group
7D
-4.7%
1Y
-54.5%
TOI
CA$91.10
Topicus.com
7D
-7.5%
1Y
-46.1%