Down 12% Over the Past Year, Is it Time to Buy Kinaxis Stock?

It’s been a relative bloodbath for many technology stocks, and in particular, those in the software space. Indeed, looking at the stock chart for Kinaxis (TSX:KXS) below, one may be thinking twice about whether now is the right time to invest in this growth stock.

Now, I think the supply chain software giant’s recent performance may be a little more robust than the chart above suggests. Let’s dive into why Kinaxis could be a top-shelf opportunity for investors seeking growth at a reasonable price right now.

Solid fundamental momentum

I’m a fundamentals-first investor, and pay closest attention to the numbers that any of the companies I closely follow report on a quarterly basis. On that front, a lot appears to be going right for Kinaxis right now.

Kinaxis just posted blockbuster Q4 2025 results that should have investors cheering. Total revenue hit $144.2 million, up 16% year over year. That impressive number was driven by Kinaxis’s Software as a Service (SaaS) revenue, which I’d argue is the real growth engine of the company, which surged nearly 20% to $97.2 million, blowing past initial guidance.

Importantly, Kinaxis’s full-year 2025 revenue reached $548 million (13% growth), and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 30% to $138.4 million at a stellar 25% margin, hitting mid-term targets a year early. Annual recurring revenue accelerated to 20% growth, with $73 million in net additions. These numbers were all fueled by a land-and-expand model where expansions made up 53% of new business.

This isn’t fluke growth. Remaining performance obligations stand at $971 million, up smartly, giving crystal-clear visibility into future cash flows from sticky, multi-year enterprise contracts. Free cash flow margins are pushing near 20%, proving Kinaxis grows revenue and prints cash in an asset-light SaaS world.

Artificial intelligence and supply chain moats

While so much of the concern for investors right now centres on the impact artificial intelligence (AI) technology could have on software companies (mostly in a negative sense), I think there’s a broader thesis here to explore.

In a world of trade wars, disruptions, and volatile demand (think tariffs under President Trump) Kinaxis’s RapidResponse platform is mission-critical. It’s the niche leader in AI-driven supply chain orchestration, helping giants like Ford and Unilever make faster, smarter decisions. The new Maestro Agent Studio launch is a game-changer, embedding agentic AI for bespoke scenarios, and it’s already driving over 50% of new business from applications and expansions.

For those bullish on the growth of AI, and in particular companies that can integrate AI well into their current offerings, Kinaxis stands out to me as a no-brainer pick right now.

Bottom line: This is a stock with a valuation that makes sense

This recent 12% pullback investors have seen in Kinaxis has led to a much more palatable valuation multiple, despite the company’s premium growth prospects. Now trading around 22 times forward earnings, there are a few reasons why any investor can’t consider adding some exposure to this top blue-chip Canadian growth stock right now.

Maybe I’m wrong, but I think Kinaxis could be among the best-performing Canadian names in 2026.

The post Down 12% Over the Past Year, Is it Time to Buy Kinaxis Stock? appeared first on The Motley Fool Canada.

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More reading

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• Want $1 Million in Retirement? Invest $50,000 in These 3 Stocks and Wait a Decade
• 3 Canadian Growth Stocks for Your TFSA in 2026

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy.