Predicting where a stock will be in 10 years is part science and part imagination. For some companies, it’s a guessing game. But for others, like Constellation Software (TSX:CSU), it’s more like following a pattern. This is a company that’s built its entire reputation on consistency. Its formula to buy small software companies that serve specific markets and then grow them slowly and profitably has worked for nearly two decades. The question now is, can it keep that pace going for another 10 years?
First, the present
As of writing, Constellation stock trades at around $4,300 per share. That’s an enormous jump from where it was a decade ago when shares traded for about $270. And it hasn’t just been a case of hype. This growth has been backed by strong fundamentals and regular profitability.
In the fourth quarter (Q4) of 2024, Constellation reported revenue of US$2.7 billion, up 16% from the same period the year before. Net income for common shareholders came in at US$285 million, compared to US$141 million in Q4 2023. For the full year, revenue hit US$10.1 billion, a 20% rise year over year. Net income was US$731 million, up from US$565 million.
Those are the kinds of numbers long-term investors like to see. Steady growth, solid earnings, and a proven business model. It’s no surprise that Constellation has become one of the most admired names on the TSX. What makes it even more attractive is that it doesn’t rely on flashy new tech. It sticks to buying essential software providers that most people have never heard of. These businesses often serve small or niche markets but are incredibly stable. That stability has made Constellation’s revenue and cash flow predictable, which is a rare thing in the tech world.
What’s next?
It’s natural to ask where Constellation stock might be in 2035. While no one can say for sure, some forecasts offer a glimpse of what’s possible. One analysis suggested the stock could reach around $9,000 by 2030. That would be more than double its current price. Other sources have floated the idea that Constellation could hit $10,000 per share, perhaps even within this decade. For that to happen, Constellation stock would need to maintain an average return of about 9% annually over the next 10 years—something it has consistently done in the past.
But the future won’t be challenge-free. Constellation stock’s success depends heavily on its ability to keep acquiring new companies. As it grows, finding good businesses to buy becomes harder. The pool of easy wins shrinks, and competition for deals can drive up prices. This could put pressure on margins or slow down the pace of acquisitions. That said, Constellation has managed this well so far. Its decentralized structure allows acquired companies to operate independently while benefiting from Constellation’s financial discipline. It doesn’t try to reinvent the companies it buys. It just lets them do what they do best while improving how they allocate capital.
Spinoffs
There’s also the question of whether Constellation will eventually hit a size where it has to shift strategies. Right now, it’s worth over $90 billion and growing. Ten years from now, if it keeps up its current trajectory, it could be worth over $200 billion. At that scale, the types of companies it buys today might not move the needle much. It may need to go after slightly larger acquisitions or double down on its international efforts. Constellation stock already has operations across Europe, North America, and other global markets, so it has room to expand.
Another factor to watch is Constellation’s decision to spin off Lumine Group and Topicus.com. These moves showed that the company is open to evolving its structure when the time is right. If more spinoffs come, these could unlock further value or streamline operations, especially if Constellation stock builds new business units that become too large or specialized to stay under the same umbrella.
Bottom line
Constellation Software is not the kind of company that aims for the spotlight. It’s not trying to be the next big name in consumer tech. It just wants to quietly keep doing what it has always done: buy good businesses, run them well, and keep its shareholders happy. If it can continue doing that, then its stock could easily double over the next decade. It might not be a rocket ship, but it’s a steady climber. Sometimes, slow and steady really does win the race.
