Recently, Zacks.com users have been paying close attention to Celestica (CLS). This makes it worthwhile to examine what the stock has in store.
Celestica (CLS) possesses solid growth attributes, which could help it handily outperform the market.
Here is how Celestica (CLS) and A10 Networks (ATEN) have performed compared to their sector so far this year.
Celestica Inc. is positioned to benefit from sustained AI hardware demand, driving robust top-line and margin expansion. CLS's Hardware Platform Solutions segment, fueled by hyperscaler demand and the 1.6T Ethernet upgrade, supports elevated growth visibility through 2026 and beyond. Despite trading at 43x earnings, CLS appears dramatically undervalued long-term given projected >20% annualized returns through 2029–2030.
CLS rides AI networking demand as CCS revenues jump 76%, backed by hyperscaler deployments and next-gen compute program ramps.
CLS and VZ are navigating rising AI infrastructure demand as cloud, networking and connectivity investments shape their growth outlooks.
Celestica remains a Strong Buy, driven by its unique position in the AI hardware value chain and robust Q1 2026 results. CLS's CCS segment, focused on high-speed switches and integrated AI hardware, grew 76% YoY and now represents 80% of revenue. Enterprise division revenue surged 101% YoY, with projections for 130% growth next quarter, underlining hyperscaler-driven demand.
Celestica posted strong Q1 results, with revenue up 53% and EPS up 80%, confirming hyperscaler demand remains robust even as investors worry about margin pressure. The real story is CCS and HPS, where 1.6T switching, liquid cooling, and future CPO programs could materially expand revenue, mix quality, and margins further. Although margins may be peaking near term, accelerating capacity ramps and richer product content should still drive impressive earnings growth through 2027 and beyond thereafter.
AI-driven demand and strong 2026 guidance position CLS, JBL and SANM for further gains after YTD rallies.
Celestica (CLS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
CLS boosts 2026 outlook to $19B revenue and $10.15 EPS as AI demand fuels its compute, networking and new data center products.