Top Canadian Tech Stocks BMO Says to Watch in 2026: AI Winners and Resilient Players

Investing.com -- As the Canadian tech sector navigates through the end of 2025, investors are focusing on companies that have successfully leveraged artificial intelligence while demonstrating strong execution in their core businesses. BMO analyst Thanos Moschopoulos highlights that the market is beginning to take a more nuanced view in distinguishing between AI winners and losers, creating opportunities for both large and small-cap tech stocks.

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The technology landscape has evolved significantly in 2025, with AI becoming more broadly adopted across enterprises. Companies that were unfairly placed in the "AI loser" bucket may see valuation recovery, while established leaders continue to demonstrate their competitive advantages.

Here’s a look at the top Canadian tech stocks positioned for success in 2026:

Large Cap:

1. Celestica (CLS) - This large-cap standout has achieved triple-digit returns for three consecutive years through 2025. As a leading supplier to major hyperscalers like Google, Meta, and Amazon, Celestica has established itself as a market leader for network switches and servers based on custom silicon. The company’s strong operational execution and growing market share position it well for continued growth, even as AI infrastructure spending evolves. Trading at 25x CY2027 P/E, the stock offers attractive value given its growth trajectory.

BMO Capital Markets recently named Celestica as one of its top large-cap picks in Canadian technology for 2026, highlighting its strong competitive position and growth trajectory.

2. Shopify (SHOP) - Despite headwinds from changes in U.S. trade policy, Shopify’s revenue growth accelerated in 2025, with GMV growth reaching post-pandemic highs. The company continues to dominate in the SMB market while making significant inroads internationally and in the enterprise segment. Shopify’s diversified growth vectors, including offline commerce, B2B expansion, and payments penetration improvements, provide multiple avenues for continued success. The company’s early leadership in agentic AI capabilities further strengthens its competitive position.

In other developments, Shopify has received positive analyst commentary, with firms like Wells Fargo and BofA Securities raising their price targets based on the company’s solid performance and potential in AI.

3. Constellation Software (CSU) - Despite AI-related concerns causing a sharp derating of its stock in 2025, Constellation has maintained consistent business performance with mid-single-digit organic recurring revenue growth. The company’s deep expertise across hundreds of vertical markets creates strong competitive barriers, while its decentralized decision-making provides organizational agility in adapting to AI. CSU has already begun leveraging AI across its businesses, which should drive margin improvements and potentially accelerate organic growth.

Constellation Software’s third-quarter 2025 results showed revenue that was lighter than anticipated, though EBITDA exceeded expectations with margin expansion. Following the report, BMO Capital lowered its price target on the company.

4. CGI (GIB.A) - Despite flat organic revenue growth, CGI achieved 9% year-over-year adjusted EPS growth in FY2025 through M&A, favorable FX, margin expansion, and share buybacks. The company’s exposure to government and financial services sectors (about 60% of revenue) positions it well in verticals with complex regulatory and cybersecurity concerns. CGI’s proprietary IP and R&D investments should help it navigate the AI transition effectively.

CGI reported strong fourth-quarter results, with revenue of C$4.01 billion, up 9.7% year-over-year, and an adjusted EPS of C$2.13, both significantly beating analyst estimates.

Small Cap:

1. Kinaxis (KXS) - This supply chain software provider saw ARR growth accelerate to 17% year-over-year, with EBITDA margins returning to 25%. Trade uncertainties have actually served as a tailwind for Kinaxis, driving pipeline growth and accelerating sales cycles. The company’s AI capabilities are likely to expand its addressable user base within customer organizations, creating upsell opportunities through AI agents sold on a usage-based model.

For its third quarter of 2025, Kinaxis reported earnings per share of $0.93, which surpassed analyst forecasts, although its revenue came in slightly below expectations.

2. MDA Space (MDA) - Despite stock pressure related to customer uncertainties, MDA’s business fundamentals strengthened in 2025. The company secured significant government contracts and is positioned to benefit from increased defense spending and growing demand for LEO broadband capabilities. With multiple large opportunities in its pipeline and strong competitive positioning in satellite communications, one or two major contract wins could significantly impact the stock in 2026.

3. Lightspeed Commerce (LSPD) - Following a strategic review, Lightspeed refocused on targeted verticals within North American retail and European hospitality. Early results show promise, with location count in core markets accelerating to 7% year-over-year growth. The company’s platform capabilities in specific verticals, including supplier networks and regulatory integrations, should help it remain competitive despite larger rivals.

4. Coveo (CVO) - This AI-powered relevance platform demonstrated ongoing growth and marquee customer wins in 2025. Customers are now more educated on generative AI applications for commerce and customer service, leading to larger deal sizes. Coveo’s partnership with SAP has expanded beyond commerce to include service cloud, opening broader opportunities within the SAP customer base.

5. Evertz (ET) - The company has shown continued growth in software/services revenue, which now represents nearly half of its total revenue mix. Improved operational discipline has allowed Evertz to drive operating leverage while maintaining a strong competitive position in its core media/broadcast market. The company’s consistent cash generation supports both regular and special dividends.

As 2026 unfolds, these Canadian tech companies demonstrate that success in the AI era requires both strategic adaptation and operational excellence. Investors should consider both established leaders and undervalued players positioned to benefit from the evolving technological landscape.

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