In this article, I’ve identified two Canadian AI stocks that you can buy right now.
Is this TSX tech stock a good buy?
Valued at a market capitalization of nearly $5 billion, Kinaxis (TSX:KXS) offers cloud-based AI-powered supply chain orchestration software called RapidResponse.
The platform provides end-to-end solutions including inventory optimization, demand planning, production planning and supply chain visibility, serving the aerospace, automotive, consumer products, high-tech, industrial, life sciences, logistics and retail industries worldwide.
Kinaxis shares have returned 245% to shareholders over the past ten years. However, it is also trading 23% below all-time highs, giving you the opportunity to buy the dip.
Kinaxis delivered exceptional third-quarter results, demonstrating the company’s growing momentum in the supply chain software market. The Canadian company posted record bookings that doubled year-over-year levels, marking the second-best quarter ever for new customers, following a strong fourth quarter in 2024.
Kinaxis closed several deals with large companies in the third quarter (Q3). Renault, RepsolAnd Seiko Epson. These wins underline Kinaxis’ competitiveness against established rivals and market entrants.
The company highlighted that there was a balance between new customers and expansion deals, with existing customers contributing half of gross annual recurring revenue (ARR).
SaaS (software-as-a-service) revenue rose 17% to $92 million, while total revenue rose 11% to $134.6 million. Kinaxis reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of US$33.9 million, indicating a margin of 25%.
This combination of growth and profitability allowed management to raise expectations for the second quarter in a row and now target 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 became available to enterprises in the third quarter. Early results show a significant impact: a pharmaceutical company reported a tenfold improvement in productivity, and a major electronics manufacturer shortened monthly reporting processes by 30 hours.
The AI ​​capabilities are proving attractive to on-premise customers, prompting several customers to move to cloud deployments to access these new features.
Kinaxis stated that ARR has exceeded $400 million and expects to end 2026 with an EBITDA margin of 25%. With 14,000 remaining potential customers in its target markets and growing AI capabilities driving customer interest, the company appears well positioned for further growth.
Analysts who follow TSX tech stocks predict that free cash flow (FCF) will increase from $95 million in 2024 to $260 million in 2029. If the KXS stock price advances at 25 times FCF, which isn’t too expensive, it should rise almost 80% over the next two years.
Is This Canadian AI Stock Undervalued?
A 74% decline from record highs, I will teach (TSX:DCBO) has underperformed the broader markets over the past four years. In the third quarter, Docebo increased its ARR by 14% year-over-year to $242.5 million.
Notably, the company achieved a key milestone by achieving a 20% adjusted EBITDA margin ahead of schedule. This breakthrough in profitability was accompanied by strong execution across multiple business segments.
The efforts of the federal government of Docebo are already paying off. Just months after receiving FedRAMP authorization in May, it secured two federal clients, 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 challenges on the partnership front as the Dayforce relationship ended faster than expected and now represents only 6.2% of ARR. The Amazon The Web Services Skills Builder contract also continues its planned termination by the end of the year. However, Docebo showed resilience by expanding its relationship with Amazon with a new five-year contract for use cases in its healthcare division.
Management maintained confidence in the business fundamentals, with a growing number of corporate customers and improved retention rates, building momentum for 2026.
Analysts who follow DCBO predict adjusted earnings will grow from $1.27 per share in 2024 to $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 rise 64% over the next three years.
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