Constellation Software Just Moved: 2 TSX Tech Stocks to Watch Now

Constellation Software (TSX:CSU) just reminded investors why great software stocks are still worth a watch. The Canadian tech giant reported first-quarter revenue of US$3.2 billion, up 20% from last year. Net income jumped to US$367 million from US$136 million. And now, shares are up 9% in the last month alone after a drop year to date.

That kind of move grabs attention as Constellation stock built its name by buying niche software businesses and letting patient compounding do the work. Now investors want to know where else that model could shine. So, where else should investors keep an eye on?

LMN

Lumine Group (TSXV:LMN) deserves a close look now as it comes straight from that same family tree. The company focuses on vertical-market software for the communications and media sectors. That sounds niche, but that’s the point. Lumine buys specialized businesses, holds them for the long term, and tries to improve cash flow over time.

The latest results looked mixed, but not weak. First-quarter revenue rose 17% to US$208.3 million. However, operating income slipped 3% to US$57.9 million, while net income fell 9% to US$19 million. Investors should not brush that off. A true Constellation-style stock still needs discipline, not just deals.

Still, Lumine has a timely catalyst. Communications companies continue to spend on software that helps manage networks, customers, billing, and media systems. Those are essential tools. If Lumine can improve organic growth while continuing to buy well, the stock could draw more attention. The risk sits in that same sentence. Organic growth came in negative after currency adjustments, so investors need proof that acquired growth can translate into stronger earnings.

TOI

Topicus.com (TSXV:TOI) may offer the cleaner growth story. The company focuses mostly on European vertical-market software, with a strong base in public-sector, health, education, and finance-related software. It also shares DNA with Constellation stock, which gives investors a familiar playbook: buy good niche software companies, keep them independent, and compound over years.

Topicus reported first-quarter revenue of €435.7 million, up from €355.6 million last year. That’s strong top-line growth. Yet net income fell to €34.2 million from €44.8 million, while diluted earnings per share (EPS) dropped to €0.41 from €0.54. So the excitement comes with a catch. Topicus grew, but costs and acquisition spending weighed on earnings.

That doesn’t ruin the case, but just makes the next few quarters important. Investors may forgive softer profit when revenue growth remains strong and acquisitions build long-term scale, but will want margin improvement eventually. Topicus could pop if it shows stronger earnings leverage, especially with Constellation stock back in the spotlight. The risk is valuation. Software stocks can fall hard when investors pay for perfection and receive “pretty good.”

Bottom line

So, if Constellation’s latest results made investors look again at Canadian compounders, Lumine and Topicus should sit near the top of that watchlist. They both carry acquisition-driven growth stories with real risks. Yet together during this comeback for Constellation stock, these three could power forward any portfolio on the TSX today.

The post Constellation Software Just Moved: 2 TSX Tech Stocks to Watch Now appeared first on The Motley Fool Canada.

Should you invest $1,000 in Constellation Software right now?

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 9 percentage points.*

They revealed what they believe are 10 TSX Stocks for 2026… and Constellation Software made the list – but there are 9 other stocks you may be overlooking.

Don’t miss out on our Top 10 TSX Stocks for 2026, available when you join our mailing list!

Get the 10 stocks instantly #start_btn5 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn5 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn5 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn5 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of April 20th, 2026

More reading

• Canadian Stocks to Buy Today and Hold for the Next 7 Years
• 2 Canadian Growth Stocks for Your TFSA in 2026
• Maximum TFSA Impact: 2 TSX Stocks to Help Multiply Your Wealth
• The Best $10,000 TFSA Approach for Canadian Investors
• The Smartest Growth ETF to Buy With $1,000 Right Now

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lumine Group and Topicus.com. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.