Celestica (TSE:CLS) Shares Climb 12.4% - Here's Why

Key Points

• Celestica shares jumped 12.4% after third-quarter results exceeded guidance, with revenue up 83% year over year to about US$5.83 billion and adjusted EPS up 109% to US$3.30.
• Management raised its 2026 outlook to approximately US$21 billion in revenue and US$11.55 in adjusted EPS, while setting a US$40 billion revenue target for 2027 driven partly by AI infrastructure demand.
• Analyst sentiment is strongly bullish, with seven Strong Buy and two Buy ratings; however, investors remain attentive to the company’s premium valuation, customer concentration and ability to meet its ambitious growth targets.

Celestica Inc. (TSE:CLS - Get Free Report) NYSE: CLS rose 12.4% during mid-day trading on Tuesday. The company traded as high as C$396.69 and last traded at C$390.15. 341,533 shares traded hands during trading, a decline of 28% from the average daily volume of 473,955 shares. The stock had previously closed at C$346.97.

Celestica News Roundup

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Q3 results exceeded guidance. Revenue rose 83% year over year to approximately US$5.83 billion, while adjusted EPS increased 109% to US$3.30. Adjusted operating margins reached 8.5%, indicating strong operating leverage. Celestica third-quarter financial results
• Positive Sentiment: Celestica raised its 2026 forecast. The company now expects roughly US$21 billion in revenue, above the FactSet consensus of US$20.62 billion, and projects adjusted EPS of approximately US$11.55. Celestica raises 2026 revenue outlook
• Positive Sentiment: The longer-term outlook improved. Management set a US$40 billion revenue target for 2027 and expects accelerating growth and expanding adjusted operating margins, supported by AI-related infrastructure demand. Celestica lifts outlook through 2027
• Positive Sentiment: Analyst commentary added support. BNP Paribas identified additional potential catalysts, including possible growth tied to Google, while market coverage characterized the results as evidence of an AI-infrastructure “supercycle.” Celestica outlook and BNP Paribas commentary
• Neutral Sentiment: The strong results follow a period of elevated volatility, and the stock’s premium valuation means investors may remain sensitive to execution, customer concentration and whether AI-driven growth meets the ambitious 2027 target.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Sanford C. Bernstein raised Celestica to a "strong-buy" rating in a research report on Wednesday, September 30th. Scotiabank raised shares of Celestica to a "strong-buy" rating in a research note on Tuesday, August 11th. FBN Securities upgraded Celestica to a "strong-buy" rating in a research report on Tuesday, September 15th. Finally, UBS Group raised Celestica from a "hold" rating to a "buy" rating and set a C$430.00 price target for the company in a research note on Monday, August 24th. Seven investment analysts have rated the stock with a Strong Buy rating and two have assigned a Buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Strong Buy" and a consensus price target of C$388.33.

Celestica Trading Up 12.5%

The company's fifty day moving average is C$461.71 and its 200-day moving average is C$461.30. The company has a debt-to-equity ratio of 32.68, a current ratio of 1.23 and a quick ratio of 0.54. The stock has a market cap of C$49.24 billion, a PE ratio of 40.55, a PEG ratio of 0.14 and a beta of 1.36.

Celestica (TSE:CLS - Get Free Report) NYSE: CLS last posted its quarterly earnings data on Monday, October 26th. The company reported C$4.70 earnings per share for the quarter. The company had revenue of C$8.30 billion during the quarter. Celestica had a net margin of 7.16% and a return on equity of 50.64%. On average, analysts predict that Celestica Inc. will post 5.03 earnings per share for the current fiscal year.

Celestica Company Profile

Celestica is a technology leader dedicated to driving customer success and market advancements. With deep expertise in design, engineering, manufacturing, supply chain, and platform solutions, Celestica enables critical data center infrastructure for AI, cloud and hybrid cloud, and advances technologies in high-growth markets. With a talented team and a strategic global network, Celestica helps its customers achieve competitive advantages.

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