Canadian technology stocks delivered strong returns in 2024, with many of them outperforming the TSX Composite’s impressive 18% gains. The sector benefited from a combination of easing inflation, lower interest rates, and increased adoption of technology across industries.
As we move into 2025, the tech sector remains well-positioned to thrive, with some tech companies standing out for their ability to potentially benefit from long-term trends like artificial intelligence (AI) and cloud computing. That’s why it could be the right time for long-term investors to consider adding some quality tech stocks to their portfolios.
In this article, I’ll highlight two TSX-listed top technology stocks that appear set to dominate in 2025 and beyond.
Descartes Systems stock
Trading with a market cap of $14.1 billion, Descartes Systems Group (TSX:DSG) has jumped by 43% in the last year to $167.23 per share. This Waterloo-based software company mainly focuses on providing cloud-based software-as-a-service (SaaS) solutions that optimize supply chain processes.
In its fiscal third quarter of 2025 (ended in October 2024), Descartes posted a 16.6% YoY (year-over-year) jump in its revenue to US$168.8 million. This included a 15% growth in its services revenue, which accounted for around 89% of its total revenue. The company’s adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter also grew 13.5% from a year ago to US$72.1 million, highlighting its focus on improving profitability. Remarkably, Descartes also continued to maintain a robust adjusted EBITDA margin of 43% last quarter.
Despite global trade challenges, Descartes is continuing to expand its reach through quality acquisitions. Its recent purchases, like MyCarrierPortal and Sellercloud, have strengthened its portfolio, which will allow the company to offer solutions for carrier onboarding and e-commerce management. These moves align with Descartes’s strategy to adapt to evolving customer needs.
As global supply chain hurdles, including tariffs and geopolitical issues, are increasing the demand for Descartes’s analytics solutions, I expect DSG stock to continue outperforming the broader market in 2025.
Kinaxis stock
Unlike Descartes Systems, the Ottawa-based Kinaxis (TSX:KXS) didn’t outperform the broader market in 2024. However, its increasing focus on integrating AI and machine learning-powered tech solutions into its portfolio makes it a really attractive TSX stock to buy right now.
KXS stock currently trades at $172.41 per share with a market cap of $4.8 billion after witnessing about 16% gains for the last nine months. Kinaxis is making efforts to push the boundaries of innovation in supply chain orchestration with its AI-driven platform called Maestro. The company’s financial performance in the third quarter of 2024 clearly reflected this momentum. For the quarter, its SaaS revenue climbed by 16% YoY as it achieved a strong 25% adjusted EBITDA margin.
In the latest quarter, Kinaxis also managed to post a strong 12% YoY increase in its total revenue to US$121.5 million, with its annual recurring sales surging by 14% from a year ago to US$347 million. This continued sales growth reflects the strong demand for its tech solutions, which help businesses streamline supply chains and avoid disruptions, which could help its share prices soar in the coming years.
