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 synthetic intelligence (AI) spending wobble, or a regulatory headline can hit every thing directly. The issue isn’t U.S. tech itself. The issue is focus, forex publicity, and paying peak costs for progress that should keep on observe. So how will we get round it?
Think about Kinaxis
Kinaxis (TSX:KXS) gives a distinct flavour of tech with out leaving Canada. It sells supply-chain planning software program that helps giant firms determine what to make, transfer, and inventory when demand adjustments. That sounds dry, which is sweet. Companies purchase it to keep away from stockouts, cut back waste, and react sooner when the world will get messy. In a yr when disruption nonetheless lingers, that form of software program stays related.
Over the past yr, the story round Kinaxis has leaned into focus and product momentum. It stored positioning its platform as mission-critical for producers, client manufacturers, and industrial companies that can’t afford planning errors. It additionally leaned into AI options inside its instruments, which provides it a strategy to trip 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. Steerage usually drives the subsequent leg for software program names. If it reveals regular demand and assured targets, buyers can reward it rapidly. If clients 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% yr over yr. 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, conserving 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 large offers can shift between quarters, and providers can keep lumpy, so endurance nonetheless issues.
Trying forward, the thesis is easy. Provide chains nonetheless want rebuilding, and planning software program sits on the centre of that work. If world firms hold investing in resilience, Kinaxis can hold successful new clients and increasing utilization. If the economic system slows, some shoppers can delay rollouts, which might 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, might this tech inventory be a purchase for somebody making an attempt to step away from an excessive amount of U.S. tech? It might, as a result of it offers you Canadian-listed software program publicity tied to enterprise operations, not client temper, and up to date profitability traits look encouraging.
It is also a move if you’d like a discount right now, as a result of the valuation nonetheless calls for progress. If you’d like one easy transfer, including a high-quality TSX compounder like Kinaxis can diversify your tech threat whereas conserving progress within the combine. Pair it with a financial institution or utility, and you may easy the trip with out giving up upside.