Stantec: Solid Results, Upgraded 2026 Outlook, and AI-Driven Margin Expansion Support Buy Rating

Analyst Michael Tupholme of TD Cowen maintained a Buy rating on Stantec, with a price target of C$158.00.

Michael Tupholme has given his Buy rating due to a combination of factors including Stantec’s solid quarterly performance and slightly better‑than‑expected 2026 outlook. The company delivered adjusted EBITDA modestly ahead of market expectations, expanded margins year over year, and posted healthy organic revenue growth across all regions and most business units, supported by a 9% dividend increase that signals confidence in future cash flows.

Looking ahead, management’s 2026 guidance calls for net revenue growth broadly aligned with, or slightly above, prior consensus and EBITDA margins trending higher, resulting in projected earnings growth in the mid‑teens. Tupholme also highlights that Stantec’s use of AI is expected to enhance project delivery, deepen client relationships, and support further margin improvement, reinforcing his constructive medium‑ to long‑term view and his view that the shares remain attractively valued.

In another report released on February 28, TipRanks – xAI also upgraded the stock to a Buy with a C$140.00 price target.

Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of STN in relation to earlier this year.