Celestica (CLS) closed the most recent trading day at $297.34, moving +1.72% from the previous trading session.
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?
Zacks.com users have recently been watching Celestica (CLS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Finally, it's time for me to upgrade Celestica (CLS) to Buy. The recent AMD partnership has helped it bottom out and expand its AI opportunities. CLS's premium valuation (33x forward earnings) appears justified by >40% expected adjusted EPS growth (next 2 years) amid robust AI-driven CapEx expansion. The AMD Helios rack-scale AI platform deal diversifies revenue beyond Broadcom's core and strengthens CLS's position in the AI chip ecosystem.
Celestica's Q4 revenue reached $3.65 billion (+44% YoY), driven by 800G networking and AI compute deployments across hyperscaler demand cycles. EPS surged 70% in Q4 to $1.89, while FY EPS grew 98%, highlighting strong operating leverage and cost absorption. The 2026 outlook implies $17 billion in revenue (+37%) and $8.75 EPS (~45% growth), with CCS as the primary driver.
Celestica (CLS) reached $288.73 at the closing of the latest trading day, reflecting a +2.5% change compared to its last close.
Over the past few years, Celestica Inc. CLS has been increasingly focusing on margin expansion driven by a structural shift in its business model. The company is leaning toward high-value, engineering-intensive offerings, resulting in sustained profitability improvements.
Celestica delivered 28% revenue growth and 56% EPS growth in 2025, driven by CCS segment expansion and hyperscaler AI demand. CCS now represents roughly 74% of revenue, increasing dependence on hyperscaler spending cycles and concentrated customer exposure. Management plans $1 billion in CapEx in 2026, signaling a shift toward a more capital-intensive, infrastructure-like operating model.
As the AI infrastructure bottleneck shifts from GPUs and memory to networking, Celestica Inc. is increasingly well positioned to benefit through expanding exposure in high-speed switches, optical connectivity, and customized rack-scale infrastructure. The recent agentic AI inflection reinforces this opportunity by increasing compute intensity and infrastructure scale-out requirements, raising demand for faster interconnects and higher-bandwidth switching provided by Celestica. Celestica's growing mix of margin-accretive HPS programs, alongside the ongoing ramp of its 800G and upcoming 1.6T switch deployments, also reinforces visibility into CLS and its longer-term growth and earnings profile.
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.
In the closing of the recent trading day, Celestica (CLS) stood at $273.58, denoting a -2.97% move from the preceding trading day.
CLS teams up with AMD to build Helios AI platform switches, enabling high-speed GPU links and strengthening its play in booming hyperscale AI demand.