2 Canadian AI Stocks That Wall Street Isn’t Hyping (Yet)

The cross-border hype on two Canadian AI stocks could come anytime soon driven by strong profitability.

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Key Points
  • Kinaxis (TSX:KXS) is an AI‑powered supply‑chain platform (Maestro) with strong H1 2026 results—Q2 revenue +16%, profit +15%, ARR +19% to US$465.6M—and guidance of US$625–640M for 2026; it trades near $176.73 with ~19% upside to the $210.91 analyst target.
  • OpenText (TSX:OTEX) pairs enterprise information‑management with generative AI (Aviator), reporting fiscal‑2026 net income +47.5% and FCF +17.5% to US$807.5M, and offers a 4.71% dividend at about $31.53 per share.
  • Together they represent profitable, cash‑generating Canadian AI plays—Kinaxis for mission‑critical supply‑chain AI and OpenText for secure enterprise data/AI—poised for wider market recognition as AI adoption grows (monitor execution and valuations).

Wall Street remains fixated on a select circle of U.S. mega-cap artificial intelligence (AI) stocks. But while Celestica has already captured the attention of American investors as a top TSX stock and reigning AI king, cross-border hype for other Canadian AI stocks like Kinaxis (TSX: KXS) and OpenText Corporation (TSX: OTEX) could be just on the horizon.

A person uses and AI chat bot

Source: Getty Images

AI-powered supply chain platform

Ottawa-based Kinaxis provides cloud-based, agile supply chain management and solutions for large enterprises. The $4.9 billion software company takes pride in Maestro, its flagship AI-powered supply chain planning and decisioning platform.

Maestro combines predictive, generative, and agentic AI with semantic intelligence and extensible workflows. The platform not only helps clients decide faster, but also provides the foundation for broader operational orchestration across the entire supply chain. It embeds cutting-edge AI and machine learning (ML) directly into enterprise logistics.

Ford Motor, Lockheed Martin, and Unilever are among the high-profile customers. These Fortune 500 companies utilize Kinaxis’ supply chain management and planning software platform to optimize their global operations.

According to Razat Gaurav, CEO of Kinaxis, the financial results after two quarters were the strongest first half in the company’s history. In the six months ending June 30, 2026, profit rose 47.4% year-over-year to US$50.6 million.

In Q2 2026, total revenue and profit increased 16% and 15% to US$158.8 million and US$21.2 million, respectively, compared to Q2 2025. Also, annual recurring revenue increased 19% to US$465.6 million from a year ago.

“We delivered a strong second quarter, fueled by continued execution and customer momentum from both new and existing customers, as many of the world’s largest enterprises turn to Kinaxis to manage growing demand, volatility, uncertainty, and complexity,” Gaurav added. Management plans to accelerate innovation in Maestro by building a composable agentic AI platform.

Kinaxis’ long-term contracts provide visibility into future, contracted revenue. The company expects to recognize a total of US$983.5 million for the remainder of 2026 until 2028 and beyond. Revenue guidance for the current year is from US$625 million to US$640 million.

KXS trades at $176.73 per share (+2.11% year-to-date) on the TSX. Market analysts’ 12-month average price target is $210.91, a potential upside of 19.3%.

Information management champion

OpenText provides Information Management software and services globally. The $7.6 billion tech company from Waterloo helps organizations securely store, govern, and analyze enterprise data. It basically bridges the gap between enterprise data management and generative AI.

The enterprise AI and generative AI suite known as OpenText Aviator is designed specifically for Enterprise Information Management (EIM). Using natural language, Aviator users can query or search internal documents, summarize lengthy files, and get answers instantly without exposing private data to public AI models.

In fiscal 2026 (12 months ending June 30, 2026), net income (GAAP-based) and free cash flow (FCF) increased 47.5% and 17.5% to US$646 million and US$807.5 million, respectively, versus fiscal 2025. OTEX trades at $31.53 per share and pays an attractive 4.7% dividend.

Rare opportunities

Wall Street will soon stop sleeping on Kinaxis and Open Text. The former’s mission-critical AI platform will meet enterprise supply-chain demand, while the latter boasts an information-management advantage. More importantly, these profitable companies are compelling value-and-growth opportunities. Expect the stock prices to rise exponentially.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Celestica, Kinaxis, and Lockheed Martin. The Motley Fool has a disclosure policy.

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