2 Canadian Growth Stocks Supercharged for a Breakout

These two Canadian growth stocks look poised for some massive gains ahead. Here’s why investors may want to act immediately right now.

Key Points
  • Celestica is poised for impressive growth over the long term, driven by its role in the AI data-center boom, with recent stellar financial performance and ambitious future targets.
  • Kinaxis continues to capitalize on supply chain demands with robust recurring revenue and strong margins, positioning it as a leading Canadian growth stock.

I’ve got a number of top-tier Canadian growth stocks on my watch list right now. These are companies I think have tremendous outsized potential to beat the market over a long period of time, while dominating their respective industries.

Here are two of the best growth stocks Canada has to offer, and why I think these companies could outperform not only over 2026, but for many years to come.

Technology circuit board and core, 3d rendering.

Source: Getty Images

Celestica

Celestica (TSX: CLS) isn’t the flashiest name in the market, and it’s one that many investors have ignored for some time. However, I think ignoring Celestica really comes at an individual investor’s own peril.

That’s because this is a manufacturing powerhouse fueling the artificial intelligence (AI) data-centre boom. As such, it should be no surprise to investors that this is a company that’s absolutely smashing its revenue and earnings expectations.

Indeed, this past quarter, Celestica absolutely crushed revenue and earnings expectations, with top-line growth of 28% year-over-year only overshadowed by the company’s even more impressive (and whopping) 58% earnings per share growth rate.

I think the company’s past results are impressive. That said, what gets me excited for a 2026 breakout is the company’s bold outlook. Celestica’s management team is eyeing $17 billion in revenue and $8.75 adjusted EPS, backed by a steady 7.8% operating margin target. Hyperscalers like the big tech giants keep pouring cash into cloud infrastructure, handing Celestica bigger programs, scaled production, and fatter margins without them chasing app hype.

At current levels, this growth engine trades with upside potential. Thus, I think it’s time for investors to consider adding exposure now before the hardware cycle accelerates further. Risks like order pauses exist, but the earnings momentum tells a story of a supercharged growth stock that’s ready to go to the next level. With smart money piling in for the long haul, I think retail investors have an easy-to-understand playbook to execute here.​

Kinaxis

Another top Canadian tech stock I’ve become increasingly bullish on of late is Kinaxis (TSX: KXS).

Indeed, supply chain chaos has been a goldmine for Kinaxis, Canada’s supply management software leader. The company’s most recent Q3 results showed strength on all lines. The company brought in record revenue of $134.6 million, up 11% year-over-year. This number was driven by 17% software as a service (SaaS) growth to $92 million and matching annual recurring revenue gains. These business lines provide clear and predictable cash flow. At the end of the day, that’s what we’re all after.

Furthermore, the company’s fundamentals continue to paint a very bright picture of earnings growth continuing for a long time. With adjusted EBITDA surging on strong 25% operating margins, I think plenty of bottom-line growth is ahead. And with a more robust and “sticky” customer base consisting mainly of global giants relying on their platform, my outlook for Kinaxis remains very bright.

Analysts continue to tout Kinaxis as a top buy now, and I couldn’t agree more. For those looking for a company with breakout potential supported by sticky revenues and margin expansion, Kinaxis is a top name to consider today.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Celestica and Kinaxis. The Motley Fool has a disclosure policy.

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