I\u2019m in the delusional stage of Canadian winter. Yes there\u2019s an Arctic blast with the wind making it feel like minus 40 degrees, but on the bright side the sun is setting 37 minutes later than a month ago. And February is a short month. Then it\u2019s March Break. So, it\u2019s basically spring when you think about it. <\/p>\n
Earnings season kicks into high gear with 48 companies on the Toronto Stock Exchange reporting, while 79 on the S&P 500 also release results.<\/p>\n
Let\u2019s take a look at the notable ones in the five things you need to know this week:<\/p>\n
Shop til\u2019 ya drop: Shopify SHOP-T<\/a> reports Wednesday morning, just as its been swept out to sea with the rest of the software sector. Investors have been dumping software stocks on fears that AI tools are going to replace their offerings. The S&P 500 Software Index is down nearly 30 per cent in the space of just four months. Shopify has underperformed its peers, declining 40 per cent over that time. However, if there is nervousness about the year ahead, it isn\u2019t showing up in growth expectations. Shopify is expected to post nearly 28-per-cent top-line growth and a 50-per-cent boost to earnings per share. Its outlook is likely to exceed expectations, writes CIBC Capital Markets analyst Todd Coupland. CIBC estimates that in the fourth quarter and January, web traffic among Shopify Plus and Plus fashion merchants accelerated, wrote Mr. Coupland in a preview note. The chief complaint about Shopify is that it remains expensive, but Mr. Coupland said that is justified because of \u201chigher durable profit growth and lower tariff risks.\u201d <\/p>\n Deductibles: Canadian lifecos were underperformers in 2025, lagging financials and the S&P\/TSX Composite Index. It\u2019s against this backdrop that Sun Life SLF-T<\/a>, Manulife MFC-T<\/a> and Great-West Life GWO-T<\/a> report results this week. Sun Life had specific challenges around its U.S. health-care insurance program, particularly because of high-cost medical claims that investors are hoping are behind them. Sun Life was the key reason insurance stocks underperformed. \u201cA turnaround of SLF\u2019s U.S. Group businesses could be the biggest driver of performance within the group,\u201d wrote National Bank analyst Gabriel Dechaine in a preview note. \u201cIn the near-term, we believe [Sun Life] is the one to watch. It has accelerated its buyback activity in recent months. A significant increase to its program size (i.e., to 4 per cent of shares outstanding) could be another positive catalyst for the stock,\u201d wrote Mr. Dechaine. <\/p>\n Something for the kids: The Grinch and SpongeBob Square Pants may help McDonald\u2019s MCD-N<\/a> and Burger King when the quick-serve restaurants report results this week. McDonald\u2019s touched a record high on Friday and a successful Grinch Meal collaboration could show up in fourth-quarter sales when it reports Wednesday morning, said Stifel analyst Chris O\u2019Cull. \u201cWe believe investors will focus on assessing the sustainability of recent momentum,\u201d said Mr. O\u2019Cull. Restaurant Brands International QSR-T<\/a>, the parent company of Tim Horton\u2019s and Burger King, reports Thursday morning. Burger King could see the benefit of a SpongeBob movie partnership, Mr. O\u2019Cull said. Meanwhile, food innovation for afternoon meals and execution around cold beverages are a source of outperformance at Tim Hortons. <\/p>\n