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Canadian (TSX) Software Industry Analysis

UpdatedJan 01, 2026
DataAggregated Company Financials
Companies82
  • 7D-1.1%
  • 3M-15.8%
  • 1Y-21.3%
  • YTD-21.6%

Over the last 7 days, the Software industry has dropped 1.1%, driven by a pullback from Constellation Software of 0.4%. Overall the industry is down 21% in 12 months. Looking forward, earnings are forecast to grow by 24% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 01 Jan 2026CA$120.7bCA$26.1bCA$143.2m48.5x843.1x4.6x
Sat, 29 Nov 2025CA$125.6bCA$26.5bCA$137.5m47.6x913.1x4.7x
Mon, 27 Oct 2025CA$139.7bCA$25.6bCA$255.7m55.9x546.3x5.5x
Wed, 24 Sep 2025CA$150.3bCA$25.4bCA$247.3m58.3x607.9x5.9x
Fri, 22 Aug 2025CA$150.9bCA$25.4bCA$239.1m51.6x631.1x5.9x
Sun, 20 Jul 2025CA$170.3bCA$24.3bCA$176.1m55x966.8x7x
Tue, 17 Jun 2025CA$159.6bCA$24.1bCA$154.9m41.4x1030.8x6.6x
Thu, 15 May 2025CA$164.4bCA$24.5bCA$979.1m34x167.9x6.7x
Sat, 12 Apr 2025CA$142.9bCA$23.9bCA$440.8m27.6x324.3x6x
Mon, 10 Mar 2025CA$159.5bCA$24.9bCA$85.1m26.4x1873.6x6.4x
Wed, 05 Feb 2025CA$160.0bCA$23.9b-CA$2,398,847,785.2341.5x-66.7x6.7x
Fri, 03 Jan 2025CA$151.2bCA$24.0b-CA$2,414,207,513.8142.1x-62.6x6.3x
Sun, 01 Dec 2024CA$158.6bCA$23.5b-CA$2,339,188,498.4446.7x-67.8x6.8x
Tue, 29 Oct 2024CA$142.4bCA$22.4b-CA$2,522,530,373.7841.7x-56.5x6.4x
Thu, 26 Sep 2024CA$144.9bCA$21.9b-CA$2,489,709,497.4440x-58.2x6.6x
Sat, 24 Aug 2024CA$141.6bCA$21.9b-CA$2,515,974,272.5038.6x-56.3x6.5x
Mon, 22 Jul 2024CA$141.3bCA$21.5b-CA$3,409,058,331.2347x-41.5x6.6x
Wed, 19 Jun 2024CA$131.3bCA$21.7b-CA$3,389,467,981.9439x-38.7x6.1x
Fri, 17 May 2024CA$128.7bCA$21.5b-CA$3,486,554,786.8650.6x-36.9x6x
Sun, 14 Apr 2024CA$130.4bCA$21.0b-CA$4,268,271,008.3122.6x-30.5x6.2x
Tue, 12 Mar 2024CA$125.2bCA$20.6b-CA$4,782,381,755.7827x-26.2x6.1x
Thu, 08 Feb 2024CA$120.1bCA$19.6b-CA$3,927,001,884.7725.9x-30.6x6.1x
Sat, 06 Jan 2024CA$113.5bCA$19.8b-CA$3,952,012,290.0026.7x-28.7x5.7x
Mon, 04 Dec 2023CA$112.1bCA$20.0b-CA$4,160,011,243.0027.8x-27x5.6x
Wed, 01 Nov 2023CA$98.2bCA$19.7b-CA$4,245,913,384.0070.7x-23.1x5x
Fri, 29 Sep 2023CA$100.0bCA$19.3b-CA$4,172,592,042.0054.3x-24x5.2x
Sun, 27 Aug 2023CA$102.1bCA$19.4b-CA$4,167,940,203.0057.6x-24.5x5.3x
Tue, 25 Jul 2023CA$104.4bCA$18.1b-CA$3,850,615,892.0073.6x-27.1x5.8x
Thu, 22 Jun 2023CA$99.7bCA$17.9b-CA$3,932,227,230.0070.5x-25.4x5.6x
Sat, 20 May 2023CA$101.1bCA$18.0b-CA$3,170,889,719.0065x-31.9x5.6x
Mon, 17 Apr 2023CA$97.9bCA$16.9b-CA$3,301,052,564.0049x-29.7x5.8x
Wed, 15 Mar 2023CA$87.4bCA$16.6b-CA$2,551,283,908.0038.4x-34.2x5.3x
Fri, 10 Feb 2023CA$89.5bCA$16.4b-CA$2,230,259,118.0034.3x-40.1x5.5x
Sun, 08 Jan 2023CA$81.2bCA$16.2b-CA$673,655,255.0027.3x-120.5x5x
Price to Earnings Ratio

-120.5x


Total Market Cap: CA$81.2bTotal Earnings: -CA$673,655,255.00Total Revenue: CA$16.2bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Software Industry Price to Earnings3Y Average 170.9x202420252026
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 843x which is higher than its 3-year average PE of 171x.
  • The 3-year average PS ratio of 5.9x is higher than the industry's current PS ratio of 4.6x.
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 Market-0.51%
Tech-1.77%
Software-1.10%
Application Software-0.86%
Systems Software-6.57%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 143x.
    • Analysts are expecting annual earnings growth of 24.1%, which is higher than its past year's earnings growth of 0.8% 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 56.8x.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 34% 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
TOI Topicus.comCA$127.150.5%
+CA$52.5m		4.6%PE252.5x
WERX Fintechwerx International Software ServicesCA$2.3649.4%
+CA$19.0m		n/an/a
QBTQ SuperQ Quantum ComputingCA$1.5435.1%
+CA$12.0m		926.7%PB97.5x
DCBO DoceboCA$30.491.3%
+CA$11.2m		-52.7%PE28.3x
THNC Thinkific LabsCA$1.947.2%
+CA$8.8m		-35.1%PE360.8x

Latest News

CSU
CA$3,301.40
Constellation Software
7D
-0.4%
1Y
-25.7%

Constellation Software (TSE:CSU) Has A Rock Solid Balance Sheet

Jan 01
Constellation Software (TSE:CSU) Has A Rock Solid Balance Sheet
DSG
CA$120.41
Descartes Systems Group
7D
-1.3%
1Y
-26.3%

Here's Why We Think Descartes Systems Group (TSE:DSG) Might Deserve Your Attention Today

Dec 31
Here's Why We Think Descartes Systems Group (TSE:DSG) Might Deserve Your Attention Today
MHUB
CA$0.79
Minehub Technologies
7D
-1.3%
1Y
177.2%
BITF
CA$3.23
Bitfarms
7D
-11.7%
1Y
51.6%

Bitfarms Ltd.'s (TSE:BITF) 25% Dip Still Leaving Some Shareholders Feeling Restless Over Its P/SRatio

Dec 28
Bitfarms Ltd.'s (TSE:BITF) 25% Dip Still Leaving Some Shareholders Feeling Restless Over Its P/SRatio
HIVE
CA$3.54
HIVE Digital Technologies
7D
-9.0%
1Y
-13.9%
DCBO
CA$30.49
Docebo
7D
1.3%
1Y
-52.7%

DCBO: Enterprise Expansion Will Drive Long-Term Returns Despite Near-Term Margin Pressure

Analysts have trimmed their price target on Docebo to $28 from $34, reflecting slightly lower fair value and profit margin assumptions, even as they highlight the company’s strong learning management platform, upmarket expansion, and enterprise focused growth strategy. Analyst Commentary Recent Street research presents a mixed but generally constructive view on Docebo, with targets and ratings reflecting both confidence in the company’s long term growth profile and caution around near term execution and profitability.
THNC
CA$1.94
Thinkific Labs
7D
7.2%
1Y
-35.1%

THNC: Share Repurchases Will Support Future Upside After Market Perform Downgrade

Narrative Update on Thinkific Labs Analysts have reduced their price target on Thinkific Labs to C$3.00, citing a more cautious outlook that offsets modest improvements in profit margin expectations and a slightly lower assumed future price to earnings multiple. Analyst Commentary Analysts have taken a more balanced stance on Thinkific Labs, reflecting both the company’s progress and the constraints on its near term growth and valuation potential at the current price target.
TOI
CA$127.15
Topicus.com
7D
0.5%
1Y
4.6%

Some Investors May Be Worried About Topicus.com's (CVE:TOI) Returns On Capital

Dec 20
Some Investors May Be Worried About Topicus.com's (CVE:TOI) Returns On Capital
BB
CA$5.18
BlackBerry
7D
-5.1%
1Y
-5.1%
TINY
CA$9.60
Tiny
7D
2.3%
1Y
-26.4%
ABXX
CA$51.00
Abaxx Technologies
7D
-3.8%
1Y
360.7%
WERX
CA$2.36
Fintechwerx International Software Services
7D
49.4%
1Y
n/a
BTQ
CA$7.09
BTQ Technologies
7D
-12.8%
1Y
78.1%
MATA
CA$0.21
Matador Technologies
7D
53.6%
1Y
-64.2%
KXS
CA$173.08
Kinaxis
7D
-1.2%
1Y
-0.03%
QBTQ
CA$1.54
SuperQ Quantum Computing
7D
35.1%
1Y
926.7%