That said, I’d say there are some world-class growth stocks in Canada worth considering for long-term gains. Here are three of my top picks in this regard right now.
Celestica
Celestica (TSX:CLS) is a top provider of supply chain management solutions to a wide range of customers, which has seen its stock price rise due to its ties to the AI trading industry.
The strong growth of the company’s data center programs is a key reason for me to buy this stock. According to Celestica’s management team, this is not a one-time spike, but rather a long-term AI infrastructure play, with Celestica strengthening its forward guidance due to the recent earnings decline.
The company returned an impressive EPS of $1.58, up 52% year over year, and I think there’s more where that came from. That’s because the company’s margin expansion and new business lines in the AI/ML computing sectors could be huge.
CLS stock, still trading well below its recent peak at 30 times forward earnings, looks like a bargain to me.
Kinaxis
In the world of Canadian stocks with the most upside potential thanks to AI integrations Kinaxis (TSX:KXS) is one of my top picks.
The company’s status as a leading provider of supply chain software has been strengthened by its AI integrations, with the company seeing relatively strong 11% year-on-year growth in revenue. Importantly, software as a service (SaaS) revenue increased 17%, meaning the company’s recurring revenue model is indeed working out as investors expected.
With robust gross margins of 25% and net profit up 150% year-on-year, this is a company with some clear fundamental catalysts worth considering. Investors are starting to understand the idea that both growth and margin expansion can happen at the same time, though this stock is coming off its recent high.
I think if market sentiment improves, Kinaxis is a top player that can really take off. With the launch of the company’s AI capabilities “Maestro agents” and a number of partnership expansions, this is a stock with major upside in my opinion.
OpenText
Another top software player that I think could have a meaningful advantage in 2026 is OpenText (TSX: OTEX).
Looking at the chart above, it’s clear that this is another Canadian tech name that’s stuck in a range. The price is now around the midpoint of the five-year range and the question is whether the next move from here will be higher or lower.
I think the conversation around OpenText has shifted from a software stock to a cloud player. The company’s strong growth in its higher-margin cloud business is impressive, with this unit achieving 21% growth last quarter. That’s much better than the company’s overall revenue growth of 1.5% last quarter, signaling to investors that if you believe OpenText can become a meaningful player in the cloud race, this is a stock to own.
I think the jury is still out on this, but I’m inclined to give OpenText the benefit of the doubt.
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