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Canadian (TSX) Software Industry Analysis

UpdatedJan 09, 2026
DataAggregated Company Financials
Companies82
  • 7D0.7%
  • 3M-16.2%
  • 1Y-19.5%
  • YTD2.0%

The Software is pretty flat in the last 7 days, but Bitfarms has stood out, gaining 24%. As for the longer term, the industry has declined 19% in the last year. 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
Fri, 09 Jan 2026CA$119.6bCA$26.3bCA$147.3m47.3x812.5x4.5x
Sun, 07 Dec 2025CA$123.4bCA$26.3bCA$157.2m53.2x785x4.7x
Tue, 04 Nov 2025CA$133.9bCA$25.7bCA$248.7m54.4x538.4x5.2x
Thu, 02 Oct 2025CA$137.9bCA$25.5bCA$259.5m53.1x531.5x5.4x
Sat, 30 Aug 2025CA$154.0bCA$25.1bCA$234.3m63.7x657.3x6.1x
Mon, 28 Jul 2025CA$168.9bCA$24.3bCA$173.2m53.9x975.4x7x
Wed, 25 Jun 2025CA$163.7bCA$24.3bCA$159.7m41.1x1025.2x6.7x
Fri, 23 May 2025CA$163.3bCA$24.4bCA$919.1m34.7x177.7x6.7x
Sun, 20 Apr 2025CA$152.4bCA$23.9bCA$446.5m26.9x341.3x6.4x
Tue, 18 Mar 2025CA$152.4bCA$24.7bCA$89.1m26.2x1709.6x6.2x
Thu, 13 Feb 2025CA$162.2bCA$24.0b-CA$2,341,136,284.4230.6x-69.3x6.8x
Sat, 11 Jan 2025CA$148.6bCA$24.1b-CA$2,415,562,875.3140.8x-61.5x6.2x
Mon, 09 Dec 2024CA$158.6bCA$23.7b-CA$2,344,487,951.9244.1x-67.6x6.7x
Wed, 06 Nov 2024CA$143.5bCA$22.5b-CA$2,232,615,549.3741x-64.3x6.4x
Fri, 04 Oct 2024CA$143.8bCA$22.0b-CA$2,471,344,746.6340.1x-58.2x6.5x
Sun, 01 Sep 2024CA$143.4bCA$21.8b-CA$2,491,016,511.9244.7x-57.6x6.6x
Tue, 30 Jul 2024CA$148.3bCA$21.6b-CA$3,433,687,398.8647.8x-43.2x6.9x
Thu, 27 Jun 2024CA$132.8bCA$21.7b-CA$3,404,951,613.7643.3x-39x6.1x
Sat, 25 May 2024CA$130.0bCA$21.6b-CA$3,427,213,411.3456.7x-37.9x6x
Mon, 22 Apr 2024CA$127.7bCA$21.0b-CA$4,275,092,876.2336.2x-29.9x6.1x
Wed, 20 Mar 2024CA$122.7bCA$20.7b-CA$4,806,074,001.7329.1x-25.5x5.9x
Fri, 16 Feb 2024CA$122.3bCA$19.8b-CA$2,761,853,865.2324.6x-44.3x6.2x
Sun, 14 Jan 2024CA$120.1bCA$19.9b-CA$3,963,187,475.0028.5x-30.3x6.1x
Tue, 12 Dec 2023CA$115.0bCA$20.1b-CA$4,082,487,150.0025.9x-28.2x5.7x
Thu, 09 Nov 2023CA$102.7bCA$19.9b-CA$4,323,618,854.0069x-23.7x5.2x
Sat, 07 Oct 2023CA$101.8bCA$19.4b-CA$4,197,370,417.0055.5x-24.3x5.2x
Mon, 04 Sep 2023CA$105.6bCA$19.4b-CA$4,115,700,218.0059.2x-25.7x5.4x
Wed, 02 Aug 2023CA$103.8bCA$18.3b-CA$3,874,033,153.0072.7x-26.8x5.7x
Fri, 30 Jun 2023CA$102.5bCA$18.2b-CA$3,709,014,382.0072.4x-27.6x5.6x
Sun, 28 May 2023CA$100.1bCA$18.3b-CA$4,110,089,864.0076.3x-24.4x5.5x
Tue, 25 Apr 2023CA$97.6bCA$17.4b-CA$3,292,880,072.0034.6x-29.6x5.6x
Thu, 23 Mar 2023CA$89.3bCA$16.6b-CA$2,579,617,617.0037.1x-34.6x5.4x
Sat, 18 Feb 2023CA$90.2bCA$16.4b-CA$2,263,824,703.0035.9x-39.9x5.5x
Mon, 16 Jan 2023CA$84.1bCA$16.1b-CA$662,939,050.0029x-126.9x5.2x
Price to Earnings Ratio

-126.9x


Total Market Cap: CA$84.1bTotal Earnings: -CA$662,939,050.00Total Revenue: CA$16.1bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Software Industry Price to Earnings3Y Average 177.8x202420252026
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 812x which is higher than its 3-year average PE of 178x.
  • The 3-year average PS ratio of 5.9x is higher than the industry's current PS ratio of 4.5x.
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 18% 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 Market1.76%
Tech0.66%
Software0.67%
Systems Software2.75%
Application Software0.58%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 151x.
    • Analysts are expecting annual earnings growth of 24.3%, 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 59.7x.
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
BITF BitfarmsCA$4.0124.1%
+CA$466.4m		76.7%PS6.3x
CSU Constellation SoftwareCA$3.31k0.3%
+CA$223.8m		-23.3%PE73.7x
HIVE HIVE Digital TechnologiesCA$4.3422.6%
+CA$190.4m		-1.8%PE21.6x
ACT Aduro Clean TechnologiesCA$18.5530.7%
+CA$144.7m		123.5%PS2790.3x
BB BlackBerryCA$5.353.3%
+CA$100.3m		-6.3%PE107.9x

Latest News

ISTK
CA$1.30
Intellistake Technologies
7D
-12.2%
1Y
766.7%
KXS
CA$175.48
Kinaxis
7D
1.4%
1Y
2.6%
LSPD
CA$17.00
Lightspeed Commerce
7D
2.7%
1Y
-22.8%

LSPD: Legal Settlement And Margin Pressure Will Likely Restrict Future Upside

Analysts have adjusted their price target on Lightspeed Commerce, reflecting updated views on revenue growth, profit margin potential and future P/E assumptions. This should be seen as a recalibration rather than a dramatic reset in expectations.
BITF
CA$4.01
Bitfarms
7D
24.1%
1Y
76.7%

BITF: Panther Creek Project Financing Will Drive Future AI And HPC Expansion

Narrative Update The analyst price target on Bitfarms has been revised higher to $7.00 from a prior range around $3.00, as analysts factor in updated assumptions for high performance computing and AI related power demand, modestly adjust discount rates and profitability expectations, and point to the company's growing project pipeline as support for the new valuation framework. Analyst Commentary Recent research updates point to a more constructive stance on Bitfarms, with higher price targets tied to the company’s growing high performance computing and AI infrastructure plans and financing progress.
HIVE
CA$4.34
HIVE Digital Technologies
7D
22.6%
1Y
-1.8%
CVO
CA$7.09
Coveo Solutions
7D
7.1%
1Y
9.2%

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Analysts have trimmed their price targets on Coveo Solutions, with recent cuts to C$11 and C$9 contributing to a lower implied fair value of about $6.39, down from roughly $7.97. This shift reflects more cautious assumptions on revenue growth, profit margins and future P/E multiples.
ONE
CA$0.68
01 Quantum
7D
-8.1%
1Y
51.1%
ACT
CA$18.55
Aduro Clean Technologies
7D
30.7%
1Y
123.5%
CSU
CA$3,311.96
Constellation Software
7D
0.3%
1Y
-23.3%

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DSG
CA$118.66
Descartes Systems Group
7D
-1.5%
1Y
-27.2%

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Dec 31
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LMN
CA$26.10
Lumine Group
7D
-3.8%
1Y
-35.2%

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TOI
CA$126.71
Topicus.com
7D
-0.3%
1Y
2.1%

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Dec 20
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BB
CA$5.35
BlackBerry
7D
3.3%
1Y
-6.3%
ABXX
CA$45.50
Abaxx Technologies
7D
-10.8%
1Y
280.4%
SYZ
CA$5.62
Sylogist
7D
-2.6%
1Y
-36.6%
QBTQ
CA$1.31
SuperQ Quantum Computing
7D
-14.9%
1Y
773.3%