March is an exciting time to revisit some of the top tech stocks on the TSX. While the U.S. market tends to dominate the conversation when it comes to technology, Canada has a few standout names that have proven an ability to deliver strong returns. This month, three tech stocks have particularly caught my attention. Those are Constellation Software (TSX:CSU), Descartes Systems Group (TSX:DSG), and Celestica (TSX:CLS). Each of these companies has a compelling growth story, and their recent financial performance suggests that they are well-positioned for further success in 2025.
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CSU stock
Constellation Software is a name that Canadian investors have come to associate with steady growth and strategic acquisitions. The tech stock has built its business model around acquiring and managing vertical market software businesses, a strategy that has paid off handsomely over the years. CSU’s stock has been on a tear, recently hitting a new 52-week high of $5,018.34. Analysts have already taken a bullish stance, raising their price target on CSU from $4,800 to $5,300, citing its ability to generate strong cash flows and execute acquisitions efficiently.
Looking at CSU’s latest financials, the tech stock reported trailing 12-month revenue of $9.69 billion, representing a solid 19.5% year-over-year growth. However, net income was down 27.8% year over year, which could raise some concerns about profitability. That said, CSU has historically operated with high margins, and its return on equity remains strong at 13.71%. The tech stock also maintains a robust balance sheet, with over $2 billion in cash, which should allow it to continue its aggressive acquisition strategy. With a forward price-to-earnings (P/E) ratio of 35.46, CSU isn’t cheap. Yet investors seem willing to pay a premium for its consistent growth.
DSG stock
Descartes Systems Group is another TSX-listed tech stock that has been performing exceptionally well. Specializing in cloud-based logistics and supply chain management software, Descartes has seen strong demand for its services as companies around the world look for ways to improve supply chain efficiency. The tech stock’s most recent earnings report showed a 16.6% increase in revenue year over year, reaching $631.76 million. Meanwhile, net income grew 37.4%, a testament to its strong business model and ability to scale.
One of the standout metrics for DSG is its profitability. The tech stock boasts an impressive operating margin of 28.22% and a profit margin of 21.80%, far exceeding industry averages. Its market cap has climbed to $13.49 billion, and investors continue to see it as a reliable long-term growth play. With a trailing P/E ratio of 69.13 and a forward P/E of 47.62, DSG is valued more like a high-growth stock than a traditional software company. Yet its financials suggest that the premium valuation is justified. As companies continue to digitize their supply chain operations, DSG’s solutions will likely remain in high demand.
CLS stock
Celestica, meanwhile, has been riding the artificial intelligence (AI) and data centre wave to new heights. The tech stock, which provides design, manufacturing, and supply chain solutions for high-tech industries, has been a major beneficiary of the surge in AI-driven infrastructure spending. Its most recent earnings report was a blowout, with fourth-quarter sales rising 19% to $2.55 billion. Even more impressive, earnings per share (EPS) shot up 44% year over year. In response to this strong performance, Celestica raised its 2025 revenue outlook to $10.7 billion, up from its previous forecast of $10.4 billion.
This momentum has propelled CLS stock to an all-time high, with shares gapping up following its earnings announcement. The tech stock’s focus on high-growth sectors like AI servers, cloud computing, and enterprise networking has made it one of the hottest tech stocks on the TSX. With a forward P/E ratio of just 19.01, Celestica appears relatively cheap compared to other AI-related plays. This could make it an attractive opportunity for investors looking to gain exposure to the industry without overpaying.
Bottom line
Overall, March is shaping up to be a great month to revisit Canadian tech stocks, and CSU, DSG, and CLS stand out as some of the most compelling opportunities on the TSX. Whether you’re looking for a steady compounder like Constellation Software, a high-margin software-as-a-service play like Descartes, or an AI infrastructure winner like Celestica, these three tech stocks offer diverse ways to invest in the future of technology.
