An excessive amount of U.S. tech can really feel like a successful technique proper up till it doesn’t. When a handful of mega-cap names drive most of your returns, your portfolio begins to behave like one crowded commerce. A fee shock, a man-made intelligence (AI) spending wobble, or a regulatory headline can hit the whole lot without delay. The issue isn’t U.S. tech itself. The issue is focus, forex publicity, and paying peak costs for progress that should keep on monitor. So how can we get round it?
Contemplate Kinaxis
Kinaxis (TSX:KXS) affords a unique flavour of tech with out leaving Canada. It sells supply-chain planning software program that helps massive firms determine what to make, transfer, and inventory when demand adjustments. That sounds dry, which is nice. Companies purchase it to keep away from stockouts, cut back waste, and react sooner when the world will get messy. In a 12 months when disruption nonetheless lingers, that form of software program stays related.
Over the past 12 months, the story round Kinaxis has leaned into focus and product momentum. It saved positioning its platform as mission-critical for producers, shopper manufacturers, and industrial corporations that can’t afford planning errors. It additionally leaned into AI options inside its instruments, which supplies it a strategy to experience the AI theme with out relying on advertisements, telephones, or chips.
The market additionally has a transparent near-term catalyst on the calendar. Kinaxis plans to report fourth-quarter and full-year 2025 outcomes after markets shut on Mar. 4, 2026. Steering typically drives the subsequent leg for software program names. If it exhibits regular demand and assured targets, buyers can reward it shortly. If prospects hesitate, the tech inventory can reprice simply as quick.
Current earnings
Now the numbers. Within the third quarter of 2025, Kinaxis reported whole income of US$134.6 million, up 11% 12 months over 12 months. Software program as a service (SaaS) income rose 17% to US$92 million, which issues as a result of SaaS tends to be stickier than providers. Revenue climbed to US$16.8 million, or US$0.58 per diluted share, and adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) rose 13% to US$33.9 million, maintaining the margin at 25%.
These figures present why the tech inventory can act like a stabilizer in a tech-heavy portfolio. The provision chain software program agency is concentrated on renewing contracts and increasing inside its present buyer base. When SaaS grows and profitability improves, it seems extra like a compounding enterprise than a momentum commerce. The catch is that huge offers can shift between quarters, and providers can keep lumpy, so endurance nonetheless issues.
Trying forward, the thesis is simple. Provide chains nonetheless want rebuilding, and planning software program sits on the centre of that work. If international firms maintain investing in resilience, Kinaxis can maintain successful new prospects and increasing utilization. If the economic system slows, some shoppers can delay rollouts, which may stress near-term bookings even when the long-term wants keep intact. This isn’t a “recession-proof” title, however it may be steadier than consumer-driven tech.
Silly takeaway
So, may this tech inventory be a purchase for somebody making an attempt to step away from an excessive amount of U.S. tech? It may, as a result of it provides you Canadian-listed software program publicity tied to enterprise operations, not shopper temper, and up to date profitability traits look encouraging.
It may be a move if you would like a cut price right this moment, as a result of the valuation nonetheless calls for progress. If you need one easy transfer, including a high-quality TSX compounder like Kinaxis can diversify your tech threat whereas maintaining progress within the combine. Pair it with a financial institution or utility, and you may clean the experience with out giving up upside.
