2 Growth Stocks Set to Skyrocket in 2026 and Beyond

Two TSX growth stocks could have real 2026 upside if execution keeps matching the story.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published February 19, 8:15 pm EST

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Key Points

MDA Space is growing fast, backed by a $4.4 billion backlog and improving profitability.
Lightspeed is rebuilding trust with steadier results, positive cash flow, and raised guidance.
Both can soar, but they’re volatile and need continued execution to keep investors confident.

For growth stocks to truly skyrocket in 2026 and beyond, the market needs more than hype. It needs earnings that keep surprising to the upside, guidance that holds up quarter after quarter, and a story that gets simpler as it scales. The best setups also have a clear tailwind, like more satellites in orbit or more businesses running commerce through software, plus a valuation that still leaves room for good news. If a growth stock already prices in perfection, it can still fall on great results.

Young Boy with Jet Pack Dreams of Flying — Source: Getty Images

MDA

MDA Space (TSX:MDA) sits in a sweet spot Canadians rarely get exposure to on the TSX. It builds space hardware and systems and acts like a mission partner for customers that want satellites, robotics, and complex space infrastructure. Over the last year, the biggest story has been backlog and contract flow. In its Q3 2025 update, it reported backlog of $4.4 billion, which it framed as real revenue visibility into 2025 and beyond. It also flagged an acquisition that it said strengthens its end-to-end satellite systems offering, which matters as vertical integration can protect margins when supply chains get tight.

The numbers have looked like what you want from a “can this really compound” growth stock. In Q3 2025, it posted revenue of $409.8 million, up 45% year over year, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $82.8 million and an adjusted EBITDA margin of 20.2%. Adjusted net income came in at $46.1 million, or $0.35 per diluted share. That is not a pre-profit dream, but a scaling industrial story with improving profitability.

Looking ahead, it still has to prove it can turn backlog into repeatable free cash flow, but the company keeps pointing investors to a growth runway. It reaffirmed 2025 full-year revenue guidance of $1.57 billion to $1.63 billion and adjusted EBITDA of $305 million to $320 million, which implies it expects to keep the margin profile intact as it grows. Valuation also looks more reasonable than many “space” names, at around 45 times earnings, which suggests the market still wants proof, not just a cool theme.

LSPD

Lightspeed Commerce (TSX:LSPD) runs a commerce and payments platform for retail and hospitality businesses, and the setup for 2026 depends on one word: focus. It spent the last year narrowing to where it believes it can win, while pushing more payments adoption and new tools like artificial intelligence (AI) features that aim to make merchants stickier. If it keeps growing with better predictability, the stock can rerate quickly because investor trust has been the missing ingredient.

Recent results have started to look like that trust is rebuilding in real time. In its fiscal Q3 2026 release dated Feb. 5, 2026, it reported total revenue of $312.3 million, up 11% year over year, and gross profit of $133.6 million, up 15%, with gross margin rising to 43%. It also reported positive cash flow from operating activities of $28.9 million and adjusted free cash flow of $14.9 million, which helps the story shift from “promise” to “progress.”

The forward picture got clearer, too, as it raised its fiscal 2026 outlook. It guided to fiscal 2026 revenue of about $1.216 billion to $1.22 billion and adjusted EBITDA of about $72 million. That’s the kind of guidance that lets growth investors track execution without needing a miracle every quarter. The risk, of course, is that it still operates in competitive markets where pricing, churn, and merchant health can change fast, so it has to keep proving the engine works even if the economy gets choppy.

Bottom line

So could these growth stocks be buys for Canadians who want growth in 2026? They could for the right temperament. MDA can work if you want a profitable growth story with backlog visibility, and you can handle lumpy contract headlines. Lightspeed can work if you believe the turnaround will stay on track and you accept that sentiment can flip quickly when a growth stock is rebuilding credibility. If you want growth without stress, these are not it. If you want a real shot at upside and you can stay calm through volatility, both have a credible case.