While the artificial intelligence narrative is driven by big-tech companies south of the border, several TSX tech stocks are gaining traction in this disruptive segment.
In this article, I have identified two top Canadian AI stocks you can buy right now.
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Is this TSX tech stock a good buy?
Valued at a market cap of almost $5 billion, Kinaxis (TSX:KXS) provides cloud-based AI-powered supply chain orchestration software called RapidResponse.
The platform offers end-to-end solutions, including inventory optimization, demand planning, production scheduling, and supply chain visibility, serving aerospace, automotive, consumer products, high-tech, industrial, life sciences, logistics, and retail industries globally.
Kinaxis stock has returned 245% to shareholders in the last decade. However, it also trades 23% below all-time highs, which allows you to buy the dip.
Kinaxis delivered exceptional third-quarter results, demonstrating the company’s growing momentum in the supply chain software market. The Canadian firm posted record bookings that doubled year-over-year levels, marking its second-best quarter ever for new business after a strong fourth quarter in 2024.
Kinaxis bagged multiple deals with large enterprises in the third quarter (Q3), including Renault, Repsol, and Seiko Epson. These wins underscore Kinaxis’s competitive strength against established rivals and new market entrants.
The company emphasized there was a balanced split between new customer wins and expansion deals, with existing customers contributing half of the gross annual recurring revenue (ARR) additions.
Its SaaS (software-as-a-service) revenue rose 17% to US$92 million, while total sales rose 11% to US$134.6 million. Kinaxis reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of US$33.9 million, indicating a margin or 25%.
This combination of growth and profitability allowed management to raise guidance for the second straight quarter, now targeting full-year SaaS revenue growth of 15% to 17%.
Kinaxis is widening its AI moat and diversifying its revenue stream, as its Maestro AI agents were available to enterprises in Q3. Early results show a significant impact: one pharmaceutical company reported a 10-fold productivity improvement, and a major electronics manufacturer cut 30 hours from monthly reporting processes.
The AI capabilities are proving attractive to on-premise customers, prompting several to transition to cloud deployments to access these new features.
Kinaxis stated its ARR has crossed US$400 million, and it expects to exit 2026 with an EBITDA margin of 25%. With 14,000 potential customers remaining in target markets and expanding AI capabilities driving customer interest, the company appears well positioned for continued growth.
Analysts tracking the TSX tech stock forecast free cash flow (FCF) to expand from US$95 million in 2024 to US$260 million in 2029. If KXS stock is priced at 25 times forward FCF, which is not too expensive, it should surge close to 80% over the next two years.
Is this Canadian AI stock undervalued?
Down 74% from all-time highs, Docebo (TSX:DCBO) has underperformed the broader markets over the past four years. In Q3, Docebo increased its ARR by 14% year over year to US$242.5 million.
Notably, it hit a major milestone by achieving 20% adjusted EBITDA margin ahead of schedule. This profitability breakthrough came alongside strong execution across multiple business segments.
Docebo’s federal government push is already paying dividends. Just months after obtaining FedRAMP authorization in May, it secured two federal customers, including an expansion with the Department of Energy and a new deal with the Air Force Cyber Academy through partner Deloitte.
The quarter saw continued partnership challenges as the Dayforce relationship wound down faster than anticipated, now representing just 6.2% of ARR. The Amazon Web Services Skills Builder contract also continues its planned exit by year-end. However, Docebo demonstrated resilience by expanding its relationship with Amazon with a new five-year contract covering healthcare division use cases.
Management maintained confidence in the business fundamentals with growing enterprise customer counts and improving retention metrics, setting up momentum into 2026.
Analysts tracking DCBO forecast adjusted earnings to grow from US$1.27 per share in 2024 to US$2.87 per share in 2029. If the tech stock is priced at 16 times forward earnings, which is similar to the current multiple, it should surge 64% over the next three years.
