Investing in high-quality development shares is a confirmed technique for producing outsized returns over time. Whereas development shares ship market-beating returns in a bull run, they underperform the broader markets when sentiment turns bearish.
Holding this in thoughts, listed below are two worthwhile TSX tech shares you should buy proper now for distinctive long-term returns.
Is that this TSX inventory an excellent purchase?
Shopify (TSX:SHOP) continues to increase past its roots as a small-business e-commerce platform, pushed by its aggressive push into enterprise clients and worldwide markets. The Ottawa-based agency now wins roughly 4 out of each 10 enterprise offers it pursues, a powerful success charge given its single-digit total market share.
Black Friday weekend gross sales by means of Shopify retailers hit US$14.6 billion, up 27% from final 12 months. That determine has practically doubled from US$7.5 billion simply three years in the past. The expansion spans each small retailers and bigger retailers, with worldwide enterprise main the cost at excessive 30s to low 40s development charges.
Chief Monetary Officer Jeff Hoffmeister stated the corporate is positioning aggressively for what it calls Agentic Commerce, the place synthetic intelligence brokers deal with purchasing on behalf of customers.
Funds penetration reached 65% within the third quarter, which means Shopify processes practically two-thirds of all transactions flowing by means of its platform.
The enterprise technique focuses on a number of entry factors.
- Some massive retailers begin with simply the Store Pay checkout button earlier than adopting extra providers.
- Others start with point-of-sale methods for bodily shops.
- Current wins embody Estée Lauder and Canada Goose, although the gross sales cycles can stretch for years from preliminary contact to full platform adoption.
Worldwide enlargement stays a precedence, with Europe delivering sturdy outcomes. The corporate added fee capabilities, capital lending, and installment choices throughout a number of new markets this 12 months.
Administration emphasised that development is broadly distributed throughout service provider sizes, geographies, and product classes fairly than concentrated in any single space. The corporate maintains its technique of investing in expertise whereas holding headcount flat, a self-discipline it has sustained for over two years.
Given consensus worth targets, Shopify inventory trades at a 30% low cost in January 2026.
Is that this TSX tech inventory undervalued?
CGI (TSX:GIB.A) reported fiscal fourth-quarter income of $4 billion, up practically 10% from final 12 months, because the Canadian IT consulting agency expands its synthetic intelligence capabilities and pursues an aggressive acquisition technique. The Montreal-based firm posted adjusted earnings per share of $2.13, an 11% improve from the identical interval a 12 months earlier.
The corporate’s adjusted working margin improved to 16.6%, up 20 foundation factors 12 months over 12 months. CGI generated $663 million in money from operations through the quarter and deployed $491 million towards share buybacks. The board accepted a 13% dividend improve to $0.17 per share quarterly.
CEO Francois Boulanger stated CGI closed 5 acquisitions throughout fiscal 2025, spending $1.8 billion in complete. The agency just lately agreed to amass Comarch, a Polish IT firm that can greater than double its presence in Poland.
- Bookings reached $4.8 billion within the quarter for a book-to-bill ratio of 119%.
- U.S. federal authorities bookings hit 185% whereas business and state authorities got here in at 136%.
- The corporate’s contracted backlog now stands at $31.5 billion, roughly double annual income.
CGI is betting closely on AI to drive development and margins. The corporate has deployed over 165 AI brokers and greater than 2,000 automation workflows throughout consumer operations in retail, banking, communications, and vitality sectors. Administration stated its DigiOps platform is delivering productiveness positive factors as much as 30% in some software administration work.
CFO Steve Perron stated CGI maintains $2.4 billion in out there capital assets with a net-debt-leverage ratio of 1 instances. Income per worker rose 5% 12 months over 12 months, a pattern administration expects to proceed as AI instruments enhance productiveness.
Given consensus worth targets, CGI inventory trades at a 26% low cost in January 2026.
