Track market-moving stories before they get noisy

 | Source: Celestica International LP

TORONTO, Sept. 08, 2026 (GLOBE NEWSWIRE) -- Celestica Inc. (NYSE: CLS)(TSX: CLS)(“Celestica” or the “Company”) will host its 2026 Investor and Analyst Day on Tuesday, October 27, 2026.

The event will include a virtual presentation, in conjunction with the Company’s third quarter 2026 financial results conference call, followed by an in-person Lunch Forum during the afternoon.

Details for the webcast of the virtual presentation and Celestica’s third quarter 2026 financial results conference call will follow in a subsequent press release.

2026 Investor and Analyst Day Lunch Forum

Celestica’s 2026 Investor and Analyst Day Lunch Forum is an in-person event and will be held in Midtown Manhattan, New York City. During the session, Chair of the Board and CEO Rob Mionis, and a panel of Celestica’s executive leadership will be available to answer questions from the institutional investor community.

Attendance to the Lunch Forum is open exclusively to institutional investors and sell-side research analysts, and those who wish to attend this event are invited to express their interest at the following registration link.

Space for the event is limited, and attendance is subject to availability.

Contact
Celestica Investor Relations
[email protected]

Celestica Investor Relations Events
[email protected]

Key Takeaways There are many ways to obtain exposure to AI trends outside of the typical mega-cap options. INOD, AAOI, and CLS all offer meaningful exposure to the trend in one way or another. While all have faced pressure as of late, they remain strong options for investors to keep tabs on. When investors think about artificial intelligence, NVIDIA usually steals the spotlight. But the AI boom extends far beyond GPUs, creating opportunities across data preparation, networking, and infrastructure.

For investors looking beyond the usual mega-cap names, Innodata (INOD - Free Report) , Applied Optoelectronics (AAOI - Free Report) , and Celestica (CLS - Free Report) offer three less-discussed ways to gain exposure to AI spending.

All three stocks have faced pressure as of late, but they remain strong options for investors to keep a close eye on given their individual roles amid the broader AI frenzy.

Innodata

Innodata helps prepare, evaluate, and refine the massive amounts of data used to train advanced AI models.

Revenues surged 58% year over year to $92.1 million in its latest release, while adjusted EPS of $0.41 easily topped the Zacks Consensus Estimate and grew more than 100% year-over-year. Notably, management continues to expect at least 40% revenue growth in 2026.

Image Source: Zacks Investment Research

Applied Optoelectronics

Applied Optoelectronics produces high-speed optical networking products used inside data centers, including 400G, 800G, and newer 1.6T solutions.

Demand has been red-hot, with Q2 revenues jumping 86.4% to $191.9 million, while data-center revenues soared more than 140% to $107.7 million. Its 800G business is also ramping quickly, with management expecting another sharp increase in the third quarter.

Image Source: Zacks Investment Research

Celestica

Celestica’s Connectivity & Cloud Solutions segment supplies networking, server and storage infrastructure to hyperscale customers, putting CLS directly in the path of rising AI infrastructure spending.

Second-quarter revenues climbed 62.4% to $4.70 billion, while adjusted EPS jumped 82.7% to $2.54. Celestica also raised its 2026 outlook, now expecting $20.5 billion in revenues and adjusted EPS of $11.30.

CLS currently sports a Zacks Rank #1 (Strong Buy), with earnings estimates moving higher alongside strong AI and networking demand.

Image Source: Zacks Investment Research

Bottom Line

NVDA remains one of the biggest AI winners, but there remain plenty of other high-growth options as well.

Innodata (INOD - Free Report) helps supply the data behind AI models, Applied Optoelectronics (AAOI - Free Report) helps move that data at high speeds, and Celestica (CLS - Free Report) helps build the infrastructure supporting it all.

Key Takeaways DELL benefits from strong AI-server demand and a growing backlog supporting future demand.SANM posted better-than-expected fiscal third-quarter results as stronger AI demand lifts its outlook.CLS raised its outlook as demand for networking and new data-center products accelerates. Artificial intelligence (AI) continues to command investors’ attention as companies race to deploy generative AI, build advanced computing capabilities and integrate AI into everyday business operations. The rapid adoption of AI is creating a powerful, long-term investment opportunity across the technology landscape, extending beyond chipmakers to companies that provide servers, networking equipment, storage and other critical infrastructure.

The AI boom is also fueling an unprecedented wave of infrastructure spending. Hyperscalers and enterprises are committing billions of dollars to data centers, high-performance computing systems and networking capacity needed to train and run increasingly sophisticated AI models. This spending trend is creating attractive opportunities for companies supplying the hardware and systems behind the AI ecosystem. Against this backdrop, Dell Technologies Inc. (DELL - Free Report) , Sanmina Corporation (SANM - Free Report) and Celestica Inc. (CLS - Free Report) stand out as three stocks to consider before September.

Our ChoicesThe stocks below flaunt a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here, V stands for Value, G for Growth and M for Momentum. The score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dell Technologies is one of the most direct beneficiaries of the AI data-center buildout outside the semiconductor industry. The company supplies AI servers, storage and networking infrastructure to hyperscalers and other customers deploying increasingly powerful AI systems. Dell's growing AI backlog provides visibility into future demand, while its ability to deliver complete infrastructure solutions strengthens its competitive position.

Zacks has also highlighted Dell as a strong growth and momentum stock, underscoring the combination of improving business fundamentals and favorable market performance alongside potential growth. DELL’s expected earnings growth rate for the current year is 86%. The Zacks Consensus Estimate for its current-year earnings has increased 2.2% over the past 60 days. This Zacks Rank #2 company has a VGM Score of A.

Sanmina is a less widely followed but compelling AI infrastructure play. The company provides electronics manufacturing and integrated production services for sophisticated computing, networking and communications equipment. Its exposure to AI hardware demand is strengthening as customers expand data-center capacity and require increasingly complex systems. Sanmina recently reported better-than-expected fiscal third-quarter earnings and revenues, while its fiscal 2026 outlook has benefited from stronger AI-related demand.

SANM’s expected earnings growth rate for the current year is 96.9%. The Zacks Consensus Estimate for its current-year earnings has increased 5.9% over the past 60 days. This Zacks Rank #1 company has a VGM Score of A.

Celestica has emerged as a major beneficiary of the rapid expansion of AI computing and networking infrastructure. The company manufactures advanced systems used in cloud computing, data centers and communications, giving it exposure to the capital-spending boom surrounding AI. Zacks has highlighted rising 2026 and 2027 earnings estimates as AI compute and related businesses gain momentum. Celestica has also raised its outlook as demand for networking and new data-center products accelerates.

CLS’ expected earnings growth rate for the current year is 80.2%. The Zacks Consensus Estimate for its current-year earnings has increased 7.3% over the past 60 days. This Zacks Rank #1 company has a VGM Score of B.

Bottom LineDELL, SANM and CLS provide diversified exposure to the AI revolution without relying solely on chipmakers. Dell is benefiting from strong demand for AI servers and data-center infrastructure, while Sanmina and Celestica are gaining from growing demand for advanced electronics, computing systems and networking equipment. Their favorable Zacks ratings and A or B VGM Scores further strengthen their investment appeal, positioning these stocks for potential upside as AI infrastructure spending accelerates heading into September.

A month has gone by since the last earnings report for Celestica (CLS - Free Report) . Shares have lost about 12.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Celestica due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Celestica, Inc. before we dive into how investors and analysts have reacted as of late.

CLS Q2 Earnings Beat Estimates on Strong CCS Demand, Outlook Raised

Celestica reported second-quarter 2026 adjusted earnings of $2.54 per share, up 82.7% year over year and ahead of the Zacks Consensus Estimate of $2.29 by 10.9%. Revenues jumped 62.4% to $4.70 billion and surpassed the consensus mark of $4.35 billion by 8.1%.

Robust momentum in the Connectivity & Cloud Solutions (CCS) business remained the primary growth driver. CCS revenues surged 84% year over year, reflecting sustained strength in data center infrastructure demand, while management raised its 2026 outlook and now expects revenue growth to accelerate further in 2027.

CLS Delivers Another Quarter of Margin ExpansionGAAP net earnings climbed to $368.8 million, or $3.17 per share, from $211 million, or $1.82 per share, in the year-ago quarter. Higher revenues and improved operating leverage continued to support profitability.

GAAP earnings from operations increased to $458.3 million from $272.5 million a year earlier. Operating margin improved to 9.8% from 9.4%.

Celestica Margins Improve on Better MixAdjusted operating earnings increased to $386.3 million from $214.7 million in the second quarter of 2025. Adjusted operating margin expanded to a record 8.2% from 7.4%, reflecting stronger operating leverage and favorable business mix as revenue scaled sharply.

Adjusted earnings rose to $2.54 per share from $1.39 in the year-ago quarter, exceeding the Zacks Consensus Estimate of $2.29. Management attributed the better-than-expected profitability to stronger-than-anticipated operating leverage, while the adjusted effective tax rate was 20%, slightly below its prior expectation of approximately 21% due to a favorable profit mix.

Celestica's CCS Business Drives GrowthConnectivity & Cloud Solutions revenues increased 84% year over year to $3.81 billion. Segment margin improved to 8.7% from 8.3%, reflecting favorable operating leverage and stronger execution as demand from hyperscale data center customers remained robust.

Hardware Platform Solutions revenues reached approximately $1.9 billion, increasing 58% from the prior-year period. Management attributes second-quarter 2026 revenue exceeding the high end of guidance to higher-than-anticipated customer demand and strong operational execution.

CLS ATS Business Improves ProfitabilityAdvanced Technology Solutions revenues rose 8% year over year to $890 million, marking a steadier performance than the rapidly expanding CCS segment.

Despite the more modest sales growth, ATS segment margin improved to 6.3% from 5.3% a year earlier, reflecting stronger execution across its Aerospace and Defense, Industrial, HealthTech and Capital Equipment businesses. The segment continued to contribute to the company's overall margin expansion during the quarter.

Celestica Invests for Future CapacityCash provided by operating activities increased to $410.9 million from $152.4 million in the year-ago quarter, supported by stronger earnings despite higher working capital requirements tied to rapid growth.

Capital expenditures rose, with purchases of property, plant and equipment totaling $263.8 million. As a result, free cash flow reached $147.1 million compared with $119.9 million a year earlier. Cash and cash equivalents stood at $535.7 million at quarter end, while long-term borrowings under the credit facility and finance lease obligations totaled $784 million.

CLS Raises Guidance After Strong First HalfFor the third quarter of 2026, Celestica expects revenues between $5.25 billion and $5.55 billion. Adjusted earnings are projected in the range of $2.88 to $3.08 per share, while adjusted operating margin is expected to be 8.4% at the midpoint of the revenue and adjusted earnings guidance ranges.

Management also increased its 2026 outlook, citing stronger customer forecasts and improved component supply. The company now expects revenues of $20.5 billion, up from its previous outlook of $19 billion, adjusted earnings of $11.30 per share versus the prior forecast of $10.15, adjusted operating margin of 8.4% compared with 8.1% previously, and free cash flow of $600 million versus the earlier expectation of $500 million. Celestica also said it expects revenue growth in 2027 to accelerate beyond the approximately 65% growth anticipated for 2026, with adjusted earnings projected to grow faster than revenues.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.

VGM ScoresCurrently, Celestica has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Celestica has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

BlackRock Inc. acquired a new position in shares of Celestica, Inc. (NYSE:CLS – Free Report) (TSE:CLS) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 613,620 shares of the technology company’s stock, valued at approximately $223,849,000. BlackRock Inc. owned about 0.53% of Celestica as of its most recent SEC filing.

Several other large investors have also bought and sold shares of CLS. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in shares of Celestica during the 4th quarter valued at $28,000. Swiss RE Ltd. acquired a new position in Celestica in the 4th quarter worth about $29,000. Cullen Frost Bankers Inc. bought a new position in Celestica in the fourth quarter valued at about $30,000. Sittner & Nelson LLC bought a new position in Celestica in the fourth quarter valued at about $31,000. Finally, Ascentis Independent Advisors acquired a new stake in shares of Celestica during the first quarter valued at about $29,000. 67.38% of the stock is owned by institutional investors and hedge funds.

Celestica Stock Up 3.3% CLS stock opened at $317.42 on Friday. The stock’s 50 day simple moving average is $334.90 and its 200 day simple moving average is $335.87. The company has a market cap of $36.50 billion, a P/E ratio of 33.00 and a beta of 2.06. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.68 and a current ratio of 1.23. Celestica, Inc. has a fifty-two week low of $183.66 and a fifty-two week high of $474.02.

Celestica (NYSE:CLS – Get Free Report) (TSE:CLS) last announced its quarterly earnings results on Monday, July 27th. The technology company reported $2.54 EPS for the quarter, beating analysts’ consensus estimates of $2.29 by $0.25. The business had revenue of $4.68 billion during the quarter, compared to analyst estimates of $4.30 billion. Celestica had a net margin of 7.16% and a return on equity of 39.96%. Celestica’s quarterly revenue was up 62.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.39 EPS. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. On average, research analysts expect that Celestica, Inc. will post 10.42 earnings per share for the current fiscal year. Analysts Set New Price Targets Several equities analysts have issued reports on CLS shares. Royal Bank Of Canada set a $450.00 price target on shares of Celestica and gave the company an “outperform” rating in a research report on Wednesday. Bank of America reiterated a “buy” rating on shares of Celestica in a report on Wednesday, July 29th. JPMorgan Chase & Co. increased their price objective on Celestica from $445.00 to $485.00 and gave the company an “overweight” rating in a report on Wednesday, July 29th. Canadian Imperial Bank of Commerce raised their target price on Celestica from $480.00 to $500.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 29th. Finally, UBS Group raised Celestica from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $410.00 to $430.00 in a report on Monday. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, Celestica has a consensus rating of “Buy” and a consensus price target of $439.81.

Get Our Latest Stock Report on Celestica

Insider Activity at Celestica In other Celestica news, CFO Mandeep Chawla sold 17,000 shares of the business’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $399.65, for a total value of $6,794,050.00. Following the transaction, the chief financial officer owned 82,444 shares of the company’s stock, valued at approximately $32,948,744.60. The trade was a 17.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Robert Mionis sold 98,453 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $368.99, for a total transaction of $36,328,172.47. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 356,553 shares of company stock worth $135,238,444. Insiders own 1.10% of the company’s stock.

About Celestica (Free Report)

Celestica Inc is a multinational electronics manufacturing services (EMS) company that provides design, engineering, manufacturing and supply chain solutions to original equipment manufacturers across a range of industries. Headquartered in Toronto, Ontario, Canada, Celestica works with customers to develop and produce complex electronic and electro-mechanical products, integrating activities from product design and prototyping through high-volume assembly, testing and final system integration.

The company’s service offering typically includes product engineering and design support, printed circuit board assembly, box-build and systems assembly, automated test and inspection, aftermarket repair and refurbishment, and end-to-end supply chain and logistics management.

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Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Our proprietary system currently recommends Celestica (CLS - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this electronics manufacturing services company a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Celestica is 43.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 80.2% this year, crushing the industry average, which calls for EPS growth of 55.4%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Celestica is 45.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 10.1%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 26.8% over the past 3-5 years versus the industry average of 7.4%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Celestica have been revising upward. The Zacks Consensus Estimate for the current year has surged 6.1% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Celestica a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Celestica well for outperformance, so growth investors may want to bet on it.

Key Takeaways CLS expects AI-driven hyperscaler programs to lift enterprise revenue about 190% year over year.CLS raised its 2026 revenue forecast to $20.5 billion, up from $19 billion, or about 65% growth.AI/ML compute and networking demand is expected to continue supporting CLS's revenue growth. Celestica, Inc. (CLS - Free Report) is witnessing solid momentum in its Communications and Cloud Solutions (CCS) segment, backed by strength in AI networking and AI compute demand. Growing investments in AI infrastructure are driving expansion of Celestica's AI compute business. Management expects AI-related demand to remain a significant contributor to growth in the coming quarter. For the third quarter, the company expects enterprise revenues to increase approximately 190% year over year, driven by the increase in hyperscaler AI/ML compute programs.

AI is strengthening the 2026 and 2027 growth outlook. The company has raised its 2026 revenue forecast to $20.5 billion from $19 billion, representing approximately 65% growth. Beyond AI compute, Celestica is also expanding its role in AI infrastructure through custom rack systems. The company will manufacture advanced AI racks developed in collaboration with Broadcom to support OpenAI's custom accelerator roadmap. Initial deliveries are expected later in 2026, with mass production scheduled for 2027.

AMD is expanding its AI infrastructure portfolio with the upcoming Helios platform to strengthen its position in the hyperscale AI market. Celestica is a key manufacturing and design partner in this initiative. The OpenAI and AMD collaboration brings a multibillion-dollar opportunity for CLS in the next several years.

Celestica continues to see strong demand for 800G Ethernet switches across hyperscaler customers. Management expects 800G shipments to keep growing in 2027 alongside the acceleration of 1.6T deployments. AI/ML compute and networking business will likely continue to propel revenues in upcoming quarters.

How Are Competitors Faring?Celestica faces competition from Jabil, Inc. (JBL - Free Report) and Flex LTD. (FLEX - Free Report) in the AI infrastructure space. Jabil boasts a comprehensive portfolio spanning computing, storage, networking, optics, power and cooling. Such an end-to-end product offering allows it to compete across several layers of the AI infrastructure buildout. Such broad exposure is translating into significant revenue growth. Jabil is expecting AI-related revenues of approximately $13.6 billion in fiscal 2026, up from $9 billion a year earlier.

Flex continues to deepen its exposure to AI infrastructure by combining compute integration, cooling and power capabilities. In first-quarter fiscal 2027, CPI (Cloud and Power Infrastructure) segment revenues rose 35% to $2.2 billion, backed by growing AI-related demand. Flex is developing high-density power solutions and cooling technologies for next-generation AI systems.

Celestica's Price Performance, Valuation & EstimatesCelestica shares have soared 84.3% over the past year compared with the industry’s growth of 85.4%.
 

Image Source: Zacks Investment Research

From a valuation standpoint, Celestica trades at a forward price-to-earnings ratio of 22.81, higher than the industry average of 22.33.
 

Image Source: Zacks Investment Research

Earnings estimates for both 2026 and 2027 have increased over the past 60 days.

Image Source: Zacks Investment Research

Celestica currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Celestica, Inc. (NYSE: CLS - Get Free Report) (TSE: CLS) CEO Robert Mionis sold 23,496 shares of the firm's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $362.39, for a total transaction of $8,514,715.44. Following the transaction, the chief executive officer owned 23,396 shares in the

Key Takeaways Celestica is seeing strong demand for 800G switches as hyperscalers upgrade their networks.Arista is expanding its AI networking portfolio as workloads become larger and more distributed.Both companies are broadening their portfolio offerings tied to the AI infrastructure market.
The rapid expansion of AI infrastructure has created a strong opportunity for the companies that supply computing and networking systems required to develop AI models. Arista Networks, Inc. (ANET - Free Report) offers Ethernet switches, routing platforms and EOS software engineered for high bandwidth, low latency and traffic-management requirements of AI data centers. Celestica, Inc. (CLS - Free Report) focuses on providing design, engineering, manufacturing and systems capabilities for AI infrastructure.

 Per a report from Precedence Research, the AI infrastructure market, which was valued at $72.2 billion in 2025, is projected to reach $518.26 billion by 2035 with a market CAGR of 21.82%. Celestica and Arista operate in different domains of the broader AI infrastructure space. Let’s delve deeper to analyze which company is better positioned to capitalize on this emerging market trend.

The Case for AristaAI workloads are placing substantially greater demands on data-center networks. As clusters become larger, moving data efficiently between accelerators becomes increasingly important. This ensures efficient overall system resource utilization. Owing to this, higher-speed Ethernet standards such as 800G have become a critical component in next-generation AI infrastructure.

Moreover, growth opportunity is not limited to moving data in a single AI cluster. AI infrastructure is becoming increasingly distributed due to constraints related to power and physical capacity. This is creating strong demand for networking equipment capable of moving vast data volumes across the distributed data center network. Arista, with its comprehensive portfolio of AI networking solutions, is benefiting from this trend. The company has expanded its Etherlink AI-fabric customer base to more than 100 cumulative customers, compared with only four to five customers in 2024.

The company now offers switching platforms spanning traditional Ethernet deployments through emerging 1.6-terabit AI fabrics while expanding liquid-cooled networking solutions for next-generation data centers. Arista expands its software platform beyond cloud data centers through automation, campus networking, routing and AI networking capabilities. The company's unified EOS architecture enables programmable networking across client, campus, cloud and AI environments while supporting advanced routing, observability and operational automation.

To address the power, physical space and compute-related constraints, customers are looking to distribute AI workloads across campuses and data centers. Arista's 7800 platform is designed for these distributed environments, supporting traffic management, routing, security and load balancing across locations.

However, Arista faces strong competition from other major players in the industry such as Cisco Systems, Inc. (CSCO - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) . Cisco historically dominated networking and is rapidly expanding into the AI networking space. Cisco currently has $9.3 billion worth of AI infrastructure-related orders. The company continues to expand AI data center offerings, including Nexus innovations to capture greater market share.

HPE is benefiting from a robust demand environment for its edge-to-cloud platform, GreenLake, backed by growing digital transformation initiatives. With the acquisition of Juniper Networks, HPE has significantly strengthened its networking domain in AI, cloud and hybrid solutions. Rising competition can impact Arista’s growth prospects.

The Case for CelesticaCelestica is benefiting from the rapid upgrade of hyperscale data-center networks. Demand for its 800G Ethernet switches remains strong. The company’s Communications revenues grew 62% in the second quarter, primarily because of 800G switch programs. The transition to 1.6T networking is creating the next growth wave for the company. Celestica expects mass production of 1.6T programs with two hyperscalers to begin in the third quarter of 2026.

It is to be noted that a major distinction between Arista and Celestica is that Celestica's AI opportunity extends beyond networking. Celestica is seeing increasing demand for AI/ML compute infrastructure from hyperscalers. Enterprise revenues jumped 167% in the second quarter, driven primarily by the accelerated ramp of an AI/ML compute program.

Celestica’s partnership with OpenAI provides an important long-term growth opportunity. The company will manufacture advanced AI racks developed in collaboration with Broadcom to support OpenAI's custom accelerator roadmap. Advanced Micro Devices (AMD - Free Report) is expanding its AI infrastructure portfolio with the upcoming Helios platform to strengthen its position in the hyperscale AI market. Celestica is a key manufacturing and design partner in this initiative. Celestica is providing a scale-up networking switch that serves as the backbone of AMD’s Helios rack architecture. Management stated that the OpenAI and AMD collaborations can bring multi-billion-dollar opportunities in 2027.

Celestica’s diverse portfolio offering is a major advantage. The company is witnessing solid demand across its healthtech and industrial businesses. Stronger demand for wafer fabrication equipment is a positive.

How Do Zacks Estimates Compare for CLS & ANET?The Zacks Consensus Estimate for CLS’ full-year sales implies year-over-year growth of 64.27%, while that of EPS suggests growth of 78.51%. The EPS estimates have been trending northward over the past 60 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ANET’s 2026 sales and EPS implies year-over-year growth of 37.66% and 35.57%, respectively. The EPS estimates have increased over the past 60 days.

Image Source: Zacks Investment Research

Price Performance & Valuation of CLS & ANETOver the past year, Celestica has gained 72.6%, while ANET has gained 54.2% over the same period.

Image Source: Zacks Investment Research

CLS looks more attractive than Arista from a valuation standpoint. Going by the price/earnings ratio, Celestica’s shares currently trade at 22.88 forward earnings, lower than 49.98 for Arista.

Image Source: Zacks Investment Research

CLS or ANET: Which is a Better Pick?

Celestica and Arista sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Both Celestica and Arista are expanding their portfolio offerings and placing strong focus on innovation to gain from the expanding AI market. Arista has already placed itself as a major provider of AI networking solutions. But its growth trajectory could be hindered by other strong players in the market. Consequently, Celestica plays a larger role in the AI infrastructure space. Its exposure spans 800G and 1.6T networking, AI/ML compute, custom racks and hyperscaler infrastructure. Celestica’s focus on product diversification and increasing its presence in high-value markets is positive. Owing to these factors and a better valuation, Celestica seems to be a better investment option at present.

TORONTO--(BUSINESS WIRE)--Celestica Inc. (NYSE: CLS) (TSX: CLS) (“Celestica” or the “Company”), a global leader in data center infrastructure and advanced technology solutions, today announced that it has completed its previously announced equity offering of 9,677,419 common shares at a price to the public of $310 per share (the “Offering”). An aggregate of 11,129,031 common shares, which includes the full exercise of the underwriters' option of 1,451,612 common shares, were sold by Celestica f.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of CLS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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[url="]Celestica Inc.[/url] (NYSE: CLS) (TSX: CLS) (“Celestica” or the “Company”), a global leader in data center infrastructure and advanced technology

(All amounts in U.S. dollars)

TORONTO--(BUSINESS WIRE)--Celestica Inc. (NYSE: CLS) (TSX: CLS) (“Celestica” or the “Company”), a global leader in data center infrastructure and advanced technology solutions, today announced an equity offering totaling $3 billion, in order to fund investments in its business to support unprecedented multi-year demand from its customer base.

Proposed Offering

Celestica today announced a $3 billion treasury offering of common shares. The Company intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the common shares offered.

BofA Securities and Citigroup are acting as joint lead bookrunners (in alphabetical order) and TD Securities is acting as bookrunner for the offering.

Capitalizing on Multi-Year AI Infrastructure Expansion

Driven by robust demand and expanding visibility across the global AI infrastructure buildout, Celestica is announcing a $3 billion equity offering to accelerate its long-term growth strategy. As a critical engineering and manufacturing partner to the world’s leading technology companies, Celestica is investing to capture multi-year growth opportunities across its key markets of high-performance AI compute and data center Ethernet networking.

“We are experiencing accelerating momentum across our business, giving us strong conviction to continue investing behind our capabilities,” said Mandeep Chawla, Chief Financial Officer. “Maintaining a robust capital structure with enhanced balance sheet flexibility is central to executing our long-term strategy, ensuring we can seamlessly scale alongside our customers’ evolving multi-year capital deployment plans.”

“Strong operational execution across both segments, combined with unprecedented demand from our Connectivity & Cloud Solutions (CCS) customers, underscores the significant scale of the AI infrastructure buildout,” said Rob Mionis, Chief Executive Officer. “Our demand outlook is the strongest in the Company’s history, and our multi-year visibility continues to strengthen. Celestica’s market leadership and disciplined execution, fully supported by this transaction, position us to capitalize on this secular growth and deliver long-term shareholder value.”

Use of Proceeds

Net proceeds from the offering are expected to be used for working capital and to support investments in capital expenditures, in addition to other general corporate purposes.

Closing

The closing of the offering is subject to customary closing conditions, including the entering into of an underwriting agreement and the listing of the additional common shares on the New York Stock Exchange and the Toronto Stock Exchange.

About Celestica

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. For more information on Celestica, visit www.celestica.com. Our securities filings can be accessed at www.sedarplus.ca and www.sec.gov.

The information contained on or accessible through www.celestica.com is not incorporated by reference into, and does not form part of, this release.

Registration Statement and Prospectus

Celestica has filed a final base shelf prospectus containing important information relating to the securities described in this press release with the securities regulatory authorities in each of the provinces and territories of Canada. The final base shelf prospectus, any applicable shelf prospectus supplement and any amendment to the documents are accessible through SEDAR+. An automatic shelf registration statement (including a base shelf prospectus) on Form S-3 (File No. 333-285515) has been filed with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this press release relates. Before you invest, you should read the prospectus in that registration statement and other documents Celestica has filed with the SEC for more complete information about Celestica. Any offering of these securities will be made only by means of a prospectus and any applicable prospectus supplement. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of any of the documents may be obtained, without charge, if you request them in Canada from Merrill Lynch Canada Inc., 181 Bay Street-Suite 400, Toronto, Ontario M5J 2V8; Citigroup Global Markets Canada Inc., c/o: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (+1-800-831-9146); or TD Securities Inc., Attention: Symcor, NPM, at 1625 Tech Avenue, Mississauga, ON L4W 5P5, by telephone at (289) 360-2009, or by email at [email protected], or in the United States by contacting BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001 (Attention: Prospectus Department); Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (+1-800-831-9146); or TD Securities (USA) LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at [email protected].

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration and qualification under the securities laws of such state or jurisdiction.

Cautionary Note Regarding Forward-looking Statements

This press release contains forward-looking statements, including, without limitation, those related to: unprecedented multi-year and strengthening demand in our businesses, demand environment, outlook and customer forecasts, multi-year growth opportunities, our anticipated financial and/or operational results, guidance and outlook, including statements with respect to expected revenue growth in 2026 and 2027, developments related to new customer or program wins, anticipated economic conditions, industry and market trends and projections underlying market growth rates, customer demand, prospects and opportunities, and strategic initiatives, maintaining a robust capital structure and enhanced balance sheet flexibility, and the timing of, closing conditions (including listing of the common shares on the NYSE and TSX) to and use of net proceeds of the offering. Such forward-looking statements may, without limitation, be preceded by, followed by, or include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “continues,” “projects,” "target," "outlook," "goal," "guidance," “potential,” “possible,” “contemplate,” “seek,” or similar expressions, or may employ such future or conditional verbs as “may,” “might,” “will,” “could,” “should,” or “would,” or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, where applicable, and for forward-looking information under applicable Canadian securities laws.

Forward-looking statements are provided to assist readers in understanding management’s current expectations and plans relating to the future. Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management’s perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances, including certain assumptions about: revenue growth in 2026 and 2027 (including continued strengthening of customer demand, close alignment with key customers on demand planning, sustained improvements in demand visibility, and continued strengthening of adjusted operating margins); accelerating growth from our customer base, including our CCS customer base; demand levels across our businesses, including continued growth in demand from data center customers in 2026 and 2027; programs and production ramps occurring and progressing as anticipated in line with expected timelines, specifications, qualification requirements and production schedules, customer decisions, design changes, silicon and component availability, qualification outcomes, deployment timelines and priorities, constraints affecting data center development, construction, equipping or operation, and other technical, commercial, regulatory or supply-chain factors, and our expected role in such programs, including our 800G and 1.6T networking, and AI/machine learning compute programs with data center customers; technology upgrade cycles; our ability to retain programs and customers; continuing operating leverage and improving mix; the impact of anticipated market conditions on our businesses; the reliability of third party market forecasts and customer indications of future demands and roadmaps, including with respect to data center infrastructure; continued advancement and commercialization of AI technologies and cloud computing; supporting sustained high levels of capital expenditure investments by leading hyperscaler, AI, and data center customers; our ability to develop new capabilities; scaling of our operations to meet the anticipated growth in customer demand; the successful recruitment and retention of skilled talent; capital investments proceeding as anticipated, including timely completion of construction and operationalization of assets, securing required materials, utilities, and equipment for our expansion plans; our ability to secure adequate component and materials supply; alignment of our capacity with our business demands; the economy; our customers; our suppliers; tax and interest rates; no material changes to tariffs, trade restrictions, customs administration, or related refund or recovery processes, including developments relating to duties imposed under the International Emergency Economic Powers Act of 1977 and any replacement, continuing or retaliatory tariff measures, compared to what are in effect as of August 5, 2026; that our customers will retain liability for and we will continue to be able to recover substantially all costs from customers relating to product/component tariffs and countermeasures; no material changes in business activities resulting from current macroeconomic trends and uncertainties, including evolving global tariffs, trade negotiations, and geopolitical conflicts; our ability to achieve our strategic goals; the availability of cash from operations to fund planned capital investments; the availability of capital resources for, and the permissibility under our credit facility of, repurchases of outstanding common shares under our current normal course issuer bid; as well as other market, financial and operational assumptions. Readers are cautioned that such information may not be appropriate for other purposes. Readers should not place undue reliance on such forward-looking information.

Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including, among others, risks related to: changing customer capacity roadmaps for 2026 and beyond; realization of the long-term demand outlook; customer and segment concentration; reduction in customer revenue; erosion in customer market competitiveness; changes in revenue mix and margins; uncertain market, industry, political and economic conditions; customer requests to transfer manufacturing of products from one facility to another; changes to policies or legislation; operational challenges (including inventory management, supply chain constraints, and components, materials or supply shortages); volatility in energy and commodity prices; program ramps not progressing as anticipated; the cyclical nature and/or volatility of certain of our businesses; talent management and inefficient employee utilization, including recruiting, training and retaining sufficient qualified personnel in required jurisdictions and within required timeframes; our expansion plans or consolidation of our operations; planned capital expenditures to support anticipated growth in customer demand; competition risk from evolving AI technologies, including lower-cost/open-source AI models; energy, power and water constraints in the data center ecosystem; cash flow, revenue, and operating results; tax and interest rates variability; technology and IT disruption; increasing legal, tax and regulatory complexity and uncertainty (including in relation to our or our customers' businesses); integrating and achieving the anticipated benefits from acquisitions; and the potential adverse impacts of events outside of our control.

For more exhaustive information on the foregoing and other material risks, uncertainties and assumptions, readers should refer to our public filings at www.sedarplus.ca and www.sec.gov, including in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operations, Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed with, or furnished to, the U.S. Securities and Exchange Commission, and the Canadian Securities Administrators, as applicable.

Forward-looking statements speak only as of the date on which they are made, and we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

From a technical perspective, Celestica (CLS - Free Report) is looking like an interesting pick, as it just reached a key level of support. CLS recently overtook the 50-day moving average, and this suggests a short-term bullish trend.

The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.

CLS could be on the verge of another rally after moving 7.6% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.

Looking at CLS's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 3 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on CLS for more gains in the near future.

Key Takeaways Celestica ranked among top efficiency stocks after beating industry peers on key operating metrics.LRCX made the screen with stronger inventory, receivables, asset use and operating margin metrics.Johnson Controls joined the list, with a 6.2% average four-quarter earnings surprise. A company’s efficiency level shows how well it turns its resources, such as labor, capital and assets, into profits and business output. It is one of the most important measures of a company’s financial strength and profit-generating ability. Companies with higher efficiency levels usually manage their operations better, reduce costs and generate stronger returns, making them more likely to deliver solid long-term stock performance.

However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider the popular efficiency ratios listed below while selecting stocks.

The stocks of Celestica (CLS - Free Report) , Zurn Elkay Water Solutions Corp (ZWS - Free Report) , Lam Research (LRCX - Free Report) , BE Semiconductor Industries (BESIY - Free Report) and Johnson Controls International (JCI - Free Report) made it through the screening process.

These efficiency ratios are:

Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company’s potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio, or the “accounts receivable turnover ratio” or “debtor’s turnover ratio” is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.

Asset Utilization: This ratio indicates a company’s capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.

Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company’s ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that the company is facing declining sales, which has resulted in excess inventory.

Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company’s ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.

Screening CriteriaIn addition to the above-mentioned ratios, we have added a favorable Zacks Rank — Zacks Rank #1 (Strong Buy) — to the screen to make this strategy more profitable. You can see the complete list of today’s Zacks #1 Rank stocks here.

Inventory Turnover, Receivables Turnover, Asset Utilization, and Operating Margin greater than the industry average(Values of these ratios higher than industry averages may indicate that the efficiency level of the company is higher than its peers.)   

The use of these few criteria narrowed down the universe of over 7,906 stocks to 18.

Here are the top five stocks that made it through the screen:

Celestica

Celestica is one of the largest electronics manufacturing services companies in the world, primarily serving original equipment manufacturers, cloud-based and other service providers and enterprises from several industries. CLS has an average four-quarter earnings surprise of 7.7%.

Zurn Elkay Water Solutions Corp

Zurn Elkay Water Solutions Corp. supplies a range of advanced water system solutions. ZWS has an average four-quarter earnings surprise of 7.6%.

Lam Research

Lam Research supplies wafer fabrication equipment and services to the semiconductor industry. LRCX has an average four-quarter earnings surprise of 7.1%.

BE Semiconductor Industries

BE Semiconductor Industries designs, develops, manufactures, markets and services die sorting, flip chip die-attach, molding, trim and form, singulation and plating systems for the semiconductor industry's assembly operations. BESIY has an average four-quarter earnings surprise of 7.1%.

Johnson Controls International

Johnson Controls International is a diversified technology company and a multi-industrial leader, with customers spanning over 150 countries. JCI has an average four-quarter earnings surprise of 6.2%.

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Celestica (CLS - Free Report) closed the last trading session at $352.59, gaining 4.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $461.76 indicates a 31% upside potential.

The mean estimate comprises 17 short-term price targets with a standard deviation of $36.23. While the lowest estimate of $395.00 indicates a 12% increase from the current price level, the most optimistic analyst expects the stock to surge 44.6% to reach $510.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

But, for CLS, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in CLSAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 5%, as three estimates have moved higher compared to no negative revision.

Moreover, CLS currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much CLS could gain, the direction of price movement it implies does appear to be a good guide.

Posted by Defense World Staff on Jul 31st, 2026

BankChampaign National Association purchased a new position in shares of Celestica, Inc. (NYSE:CLS – Free Report) (TSE:CLS) in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 2,640 shares of the technology company’s stock, valued at approximately $744,000.

Several other large investors have also made changes to their positions in CLS. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in Celestica in the fourth quarter valued at $28,000. Swiss RE Ltd. purchased a new position in Celestica during the fourth quarter worth approximately $29,000. Cullen Frost Bankers Inc. purchased a new position in shares of Celestica during the 4th quarter valued at approximately $30,000. Sittner & Nelson LLC purchased a new position in Celestica during the fourth quarter valued at $31,000. Finally, Ascentis Independent Advisors purchased a new position in Celestica in the 1st quarter valued at about $29,000. 67.38% of the stock is owned by hedge funds and other institutional investors.

Celestica Stock Performance NYSE CLS opened at $353.90 on Friday. The company has a market capitalization of $40.69 billion, a PE ratio of 36.79, a P/E/G ratio of 0.76 and a beta of 2.05. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.23 and a quick ratio of 0.73. Celestica, Inc. has a 1 year low of $173.23 and a 1 year high of $474.02. The company has a fifty day moving average of $361.44 and a two-hundred day moving average of $333.55.

Celestica (NYSE:CLS – Get Free Report) (TSE:CLS) last released its quarterly earnings results on Monday, July 27th. The technology company reported $2.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.29 by $0.25. The firm had revenue of $4.68 billion for the quarter, compared to the consensus estimate of $4.30 billion. Celestica had a return on equity of 39.96% and a net margin of 7.16%.The firm’s quarterly revenue was up 62.4% compared to the same quarter last year. During the same quarter last year, the business posted $1.39 EPS. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. As a group, analysts expect that Celestica, Inc. will post 9.57 earnings per share for the current year.

Insider Buying and Selling In related news, CFO Mandeep Chawla sold 17,000 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $399.65, for a total transaction of $6,794,050.00. Following the transaction, the chief financial officer owned 82,444 shares of the company’s stock, valued at $32,948,744.60. This trade represents a 17.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Robert Mionis sold 66,056 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $400.06, for a total value of $26,426,363.36. Following the completion of the transaction, the chief executive officer directly owned 134,328 shares in the company, valued at approximately $53,739,259.68. The trade was a 32.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 161,168 shares of company stock valued at $63,190,485 over the last quarter. 1.10% of the stock is currently owned by insiders.

Analyst Ratings Changes Several equities research analysts have issued reports on CLS shares. Barclays lowered their target price on shares of Celestica from $441.00 to $430.00 and set an “overweight” rating on the stock in a research note on Wednesday. Royal Bank Of Canada upped their price objective on Celestica from $440.00 to $450.00 and gave the company an “outperform” rating in a report on Wednesday. Citigroup increased their target price on shares of Celestica from $338.00 to $415.00 and gave the stock a “buy” rating in a research note on Wednesday, April 29th. BWS Financial restated a “buy” rating on shares of Celestica in a research report on Tuesday. Finally, Canadian Imperial Bank of Commerce raised their price objective on shares of Celestica from $480.00 to $500.00 and gave the company an “outperform” rating in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $437.00.

Check Out Our Latest Analysis on Celestica

More Celestica News Here are the key news stories impacting Celestica this week:

Positive Sentiment: Strong earnings beat: Celestica reported second-quarter EPS of $2.54 versus the $2.29 consensus estimate, while revenue reached $4.68 billion against expectations of $4.30 billion. Revenue increased 62.4% year over year, reinforcing the company’s accelerating growth profile. Celestica Shares Up on Earnings Beat Positive Sentiment: AI demand is driving growth: Celestica’s enterprise segment grew 162% year over year, with management projecting approximately 190% growth in the third quarter. Expanding cloud networking, storage and compute programs are increasing demand for the company’s higher-value manufacturing and technology solutions. CLS Shows How AI Networking is Reshaping Electronics Manufacturing Positive Sentiment: Raised outlook and improving visibility: Celestica maintained fiscal 2026 EPS guidance at $11.30 and issued third-quarter EPS guidance of $2.88 to $3.08. Management also indicated that stronger customer visibility, networking programs and AI infrastructure demand could support faster growth and margin expansion in 2027. Celestica Q2 Earnings Call Points to Faster Growth in 2027 Positive Sentiment: Analyst confidence increased: JPMorgan raised its price target from $445 to $485 and kept an overweight rating, while RBC increased its target from $440 to $450 and retained an outperform rating. These revisions reflect confidence in Celestica’s earnings momentum and AI exposure. JPMorgan Celestica Price Target Update Neutral Sentiment: Positive long-term setup, but investor debate remains: Research coverage describes CLS as a leading AI-led electronics manufacturing opportunity, while questioning whether continued earnings growth can justify its already substantial rally and elevated valuation. Is CLS Stock Still Worth Buying? Negative Sentiment: Near-term pullback risk: AI hardware stocks are broadly taking a breather after a strong run. Celestica has shown relative strength, but it remains exposed to sector-wide volatility, profit-taking and concerns that its valuation has moved ahead of near-term fundamentals. Celestica Q2 Showing Strength Amid the AI Pause Celestica Company Profile (Free Report)

Celestica Inc is a multinational electronics manufacturing services (EMS) company that provides design, engineering, manufacturing and supply chain solutions to original equipment manufacturers across a range of industries. Headquartered in Toronto, Ontario, Canada, Celestica works with customers to develop and produce complex electronic and electro-mechanical products, integrating activities from product design and prototyping through high-volume assembly, testing and final system integration.

The company’s service offering typically includes product engineering and design support, printed circuit board assembly, box-build and systems assembly, automated test and inspection, aftermarket repair and refurbishment, and end-to-end supply chain and logistics management.

See Also Five stocks we like better than Celestica Microsoft Just Flipped the AI Spending Narrative Overnight Qualcomm’s Turnaround Is Working, So Why Is Wall Street Selling? Meta’s Earnings Show Why Wall Street Is Losing Patience With AI Spending Can Starbucks Keep This Turnaround Going? The Latest Results Say Yes Want to see what other hedge funds are holding CLS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Celestica, Inc. (NYSE:CLS – Free Report) (TSE:CLS).

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Celestica once again delivered strong Q2 2026 results, with its enterprise segment growing 162% YoY and projecting a 190% YoY increase for Q3. CLS's results, like those of other AI hardware stocks, continue to support a bullish long-term view. That said, the sector is taking a breather after such a strong run. CLS shows greater relative strength, but it isn't immune to pullbacks driven by the broader trend.

Key Takeaways CLS is benefiting from rising AI networking, cloud infrastructure and high-performance compute demand.Celestica is expanding engineering, manufacturing and integrated technology solutions for AI platforms.CLS expects Connectivity & Cloud Solutions growth as AI deployments and networking upgrades scale. AI infrastructure spending is reshaping the electronics manufacturing landscape as cloud providers and enterprises expand data center capacity. Demand for advanced networking, storage and compute platforms is creating new opportunities for manufacturers with deep engineering and production capabilities.

Celestica Inc. (CLS - Free Report) illustrates this shift through its growing exposure to cloud infrastructure and high-performance networking. As customers accelerate AI deployments, the company continues to broaden its portfolio while scaling production for next-generation platforms.

Celestica Benefits From AI Infrastructure SpendingEnterprise networking, cloud infrastructure, high-bandwidth switching, storage systems and data center products have become increasingly important growth drivers for Celestica. Management said demand across AI networking and compute platforms remains strong, supported by multiyear customer capacity planning and expanding program ramps.

Recent quarterly result highlighted continued momentum in 800G networking, the launch of 1.6-terabit programs and expanding artificial intelligence compute deployments. These trends reinforce the industry's broader investment cycle as hyperscale customers continue building AI infrastructure.

CLS Expands High-Value Technology SolutionsCelestica continues investing in engineering expertise, advanced manufacturing capabilities and product innovation to strengthen its position in higher-value markets. Long-standing customer relationships also support participation in complex infrastructure programs that require scale and operational execution.

The company's strategy increasingly centers on integrated technology solutions rather than traditional manufacturing alone. That approach positions Celestica to pursue emerging opportunities across networking, storage and custom AI platforms while expanding margins over time.

Celestica Cloud Business Gains ScaleConnectivity & Cloud Solutions has become Celestica's primary growth engine as customer demand accelerates across communications and enterprise markets. Higher production volumes have also improved operating leverage, allowing the segment to contribute a growing share of company revenue.

Management expects continued expansion as networking upgrades, AI compute deployments and new customer programs move into production. Companies such as Flex Ltd. (FLEX - Free Report) and Jabil Inc. (JBL - Free Report) are also pursuing opportunities tied to AI infrastructure, underscoring the industry's broad-based investment cycle.

CLS Industry Trends Still Carry RisksDespite favorable demand trends, risks remain. Customer concentration, competitive pricing, geopolitical uncertainty and the cyclical nature of semiconductor spending could affect future results. Supply-chain constraints also require careful execution as production volumes increase.

Advanced Technology Solutions continues to improve, but performance across portions of that business remains tied to end-market conditions and customer spending patterns. Those factors could create periodic volatility even as AI-related demand stays healthy.

Why CLS' Rating Signals Reflect Industry MomentumThe broader industry backdrop remains constructive, and Celestica appears well positioned to benefit if AI infrastructure investment continues expanding. Even so, investors should continue monitoring execution, competitive dynamics and customer demand.

Celestica currently carries a Zacks Rank #1 (Strong Buy), along with a Growth Score of A and a VGM Score of A. Those measures suggest favorable earnings estimate revisions and strong growth characteristics. More modest Value and Momentum Scores indicate that while valuation and price trends may be less compelling than growth, the stock continues to align with the positive industry backdrop rather than serving as a guarantee of future performance. You can see the complete list of today’s Zacks #1 Rank stocks here.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Celestica (CLS - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Celestica currently has an average brokerage recommendation (ABR) of 1.16, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. An ABR of 1.16 approximates between Strong Buy and Buy.

Of the 19 recommendations that derive the current ABR, 17 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 89.5% and 5.3% of all recommendations.

Brokerage Recommendation Trends for CLS

Check price target & stock forecast for Celestica here>>>

While the ABR calls for buying Celestica, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is CLS Worth Investing In?Looking at the earnings estimate revisions for Celestica, the Zacks Consensus Estimate for the current year has increased 0.7% over the past month to $10.21.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Celestica. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Celestica may serve as a useful guide for investors.

Key Takeaways Celestica beat Q2 earnings and revenue estimates as CCS demand drove 62.4% year-over-year sales growth.CLS raised its 2026 revenue, earnings, margin and free cash flow outlook after a strong first half.CLS expects Q3 revenue of $5.25B-$5.55B and projects faster revenue growth in 2027 than in 2026. Celestica Inc. (CLS - Free Report) reported second-quarter 2026 adjusted earnings of $2.54 per share, up 82.7% year over year and ahead of the Zacks Consensus Estimate of $2.29 by 10.9%. Revenues jumped 62.4% to $4.70 billion and surpassed the consensus mark of $4.35 billion by 8.1%.

Robust momentum in the Connectivity & Cloud Solutions (CCS) business remained the primary growth driver. CCS revenues surged 84% year over year, reflecting sustained strength in data center infrastructure demand, while management raised its 2026 outlook and now expects revenue growth to accelerate further in 2027.

CLS Delivers Another Quarter of Margin ExpansionGAAP net earnings climbed to $368.8 million, or $3.17 per share, from $211 million, or $1.82 per share, in the year-ago quarter. Higher revenues and improved operating leverage continued to support profitability.

GAAP earnings from operations increased to $458.3 million from $272.5 million a year earlier. Operating margin improved to 9.8% from 9.4%.

Celestica Margins Improves on Better MixAdjusted operating earnings increased to $386.3 million from $214.7 million in the second quarter of 2025. Adjusted operating margin expanded to a record 8.2% from 7.4%, reflecting stronger operating leverage and favorable business mix as revenue scaled sharply.

Adjusted earnings rose to $2.54 per share from $1.39 in the year-ago quarter, comfortably exceeding the Zacks Consensus Estimate of $2.29. Management attributed the better-than-expected profitability to stronger-than-anticipated operating leverage, while the adjusted effective tax rate was 20%, slightly below its prior expectation of approximately 21% due to a favorable profit mix.

Celestica's CCS Business Drives GrowthConnectivity & Cloud Solutions revenues increased 84% year over year to $3.81 billion. Segment margin improved to 8.7% from 8.3%, reflecting favorable operating leverage and stronger execution as demand from hyperscale data center customers remained robust.

Hardware Platform Solutions revenues reached approximately $1.9 billion, increasing 58% from the prior-year period. Management attributed the overall outperformance to stronger-than-anticipated customer demand and improved component availability, enabling revenues to exceed the high end of its guidance range.

CLS ATS Business Improves ProfitabilityAdvanced Technology Solutions revenues rose 8% year over year to $890 million, marking a steadier performance than the rapidly expanding CCS segment.

Despite the more modest sales growth, ATS segment margin improved to 6.3% from 5.3% a year earlier, reflecting stronger execution across its Aerospace and Defense, Industrial, HealthTech and Capital Equipment businesses. The segment continued to contribute to the company's overall margin expansion during the quarter.

Celestica Invests for Future CapacityCash provided by operating activities increased to $410.9 million from $152.4 million in the year-ago quarter, supported by stronger earnings despite higher working capital requirements tied to rapid growth.

Capital expenditures rose significantly, with purchases of property, plant and equipment totaling $263.8 million. As a result, free cash flow reached $147.1 million compared with $119.9 million a year earlier. Cash and cash equivalents stood at $535.7 million at quarter end, while long-term borrowings under the credit facility and finance lease obligations totaled $784 million.

CLS Raises Guidance After Strong First HalfFor the third quarter of 2026, Celestica expects revenues between $5.25 billion and $5.55 billion. Adjusted earnings are projected in the range of $2.88 to $3.08 per share, while adjusted operating margin is expected to be 8.4% at the midpoint of the revenue and adjusted earnings guidance ranges.

Management also increased its 2026 outlook, citing stronger customer forecasts and improved component supply. The company now expects revenues of $20.5 billion, up from its previous outlook of $19 billion, adjusted earnings of $11.30 per share versus the prior forecast of $10.15, adjusted operating margin of 8.4% compared with 8.1% previously, and free cash flow of $600 million versus the earlier expectation of $500 million. Celestica also said it expects revenue growth in 2027 to accelerate beyond the approximately 65% growth anticipated for 2026, with adjusted earnings projected to grow faster than revenues.

CLS’ Zacks RankCLS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting growth of 21.92% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 19.86%. The company delivered an average earnings surprise of 8.31% in the last four reported quarters.

Keysight Technologies, Inc. (KEYS - Free Report) is set to release third-quarter 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.

Motorola Solutions, Inc. (MSI - Free Report) is set to release second-quarter 2026 earnings on Aug. 5. The Zacks Consensus Estimate for earnings is pegged at $3.86 per share, implying growth of 8.12% from the year-ago reported figure.

Motorola has a long-term earnings growth expectation of 9.47%. The company delivered an average earnings surprise of 5.17% in the last four reported quarters.

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3 Up-and-Coming Stocks That Could Be the Next NVIDIACelestica NYSE: CLS reported second-quarter 2026 revenue and adjusted earnings per share above the high end of its guidance, supported by demand for AI infrastructure and networking programs. The company also raised its full-year outlook and said it expects revenue growth to accelerate in 2027.

Second-quarter revenue reached $4.70 billion, up 62% from a year earlier, while adjusted EPS rose 83% to $2.54. Non-GAAP operating margin expanded 80 basis points to a company record of 8.2%.

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5 AI Infrastructure Stocks Smart Money Is Buying Before the Next Surge“These results reflect strong operational execution across both segments, alongside record demand from our CCS customers,” Chief Executive Officer Rob Mionis said. He cited technology upgrade cycles in networking and AI compute, as well as significant programs expected to launch in the second half of 2026 and into 2027.

CCS Growth Led by Networking and AI Compute Celestica’s Connectivity & Cloud Solutions, or CCS, segment generated $3.81 billion in quarterly revenue, a year-over-year increase of 84%. The segment represented 81% of total company revenue and posted an 8.7% margin, up 40 basis points, as higher volumes produced operating leverage.

3 Stocks Poised to Benefit From Google’s AI BreakthoughCommunications end-market revenue increased 62%, exceeding the company’s outlook for roughly 50% growth. Chief Financial Officer Mandeep Chawla said the increase was primarily driven by 800G networking switch programs, with continued demand for 400G programs.

Enterprise end-market revenue climbed 167%, also ahead of guidance, driven by an accelerated ramp of a hyperscaler AI and machine-learning compute program and stronger storage demand. Celestica’s hardware platform solutions, or HPS, business contributed $1.9 billion in revenue, up 58%, as 800G switch programs ramped across multiple hyperscale customers.

For the third quarter, Celestica expects communications revenue growth of approximately 60%, including demand for 800G programs and the start of mass-production ramps for its first 1.6-terabit programs. Enterprise revenue is expected to rise about 190% on continued hyperscaler AI/ML compute demand and improved storage demand.

Mionis said the company has 10 active 1.6T programs and expects those programs to gain momentum in 2027, while 800G and 400G products continue to grow. A co-packaged optics program is expected to begin sampling in the first half of 2027 and enter mass production in the second half of that year, he said.

ATS Segment Returns to Faster Growth Advanced Technology Solutions, or ATS, revenue increased 8% to $888 million, above the company’s outlook for a mid-single-digit percentage gain. Revenue grew across each of the segment’s businesses, and ATS accounted for 19% of Celestica’s total quarterly revenue.

ATS margin rose 100 basis points to 6.3%, supported by operating leverage and a higher engineering-driven product mix. The company expects ATS revenue to increase in the mid-teens percentage range in the third quarter, primarily due to capital equipment demand and new program ramps.

For the full year, Celestica now expects ATS revenue to rise approximately 10%. Mionis said growth is accelerating in the second half, led by sequential improvement in the capital equipment business, where the company anticipates wafer-fab equipment demand tailwinds will continue into 2027.

Company Raises 2026 Outlook, Sees Faster 2027 Growth Celestica raised its 2026 revenue outlook to $20.5 billion from $19 billion, implying 65% growth, and increased its adjusted EPS forecast to $11.30 from $10.15. The company now expects full-year adjusted operating margin of 8.4%, up from its prior 8.1% outlook, and free cash flow of $600 million, compared with prior guidance of $500 million.

Third-quarter revenue is projected to range from $5.25 billion to $5.55 billion, with adjusted EPS expected between $2.88 and $3.08. At the midpoint, that guidance implies revenue growth of 69% and adjusted EPS growth of 89% from the prior-year period.

The company said it expects 2027 revenue growth to exceed the 65% rate now anticipated for 2026, while adjusted EPS growth is expected to outpace revenue growth as operating margins expand. Mionis attributed the outlook to stronger AI/ML compute demand, increasing demand for next-generation AMD racks and a higher base of networking demand, including 800G products.

Celestica also disclosed that it expects to begin initial deliveries of custom racks for OpenAI later in 2026. Mionis said Celestica will work with OpenAI and Broadcom on multigenerational custom accelerator roadmaps, starting with the Jalapeno accelerator, which is planned for mass production in 2027.

Management described both the OpenAI opportunity and AMD Helios scale-up platform as multibillion-dollar opportunities in 2027. Chawla said the OpenAI program is expected to have the dynamics of a consigned program, meaning material costs would not flow through Celestica’s reported revenue.

Capacity Investments and Supply Chain Planning Celestica generated $147 million in free cash flow during the quarter and $285 million year to date. Capital expenditures totaled $264 million, or 5.6% of revenue, and the company maintained its full-year capital expenditure outlook of approximately $1 billion.

Inventory rose to $3.4 billion, reflecting planned scaling for CCS growth and upcoming program ramps. Cash cycle days improved to 47, down 19 days from a year earlier and eight days sequentially.

At quarter-end, the company had $536 million in cash and $740 million in gross debt, for net debt of $204 million. It reported approximately $2.3 billion in available liquidity, including its recently upsized revolver.

Management said component availability remains the primary constraint, although it believes its 2026 commitments and 2027 outlook are appropriately hedged. Chawla said demand exceeds the revenue figures Celestica has provided, but material availability limits production. The company is expanding capacity in Thailand, Japan and Texas, with investments underway in Richardson and Fort Worth.

About Celestica (NYSE:CLS)Celestica Inc is a multinational electronics manufacturing services (EMS) company that provides design, engineering, manufacturing and supply chain solutions to original equipment manufacturers across a range of industries. Headquartered in Toronto, Ontario, Canada, Celestica works with customers to develop and produce complex electronic and electro-mechanical products, integrating activities from product design and prototyping through high-volume assembly, testing and final system integration.

The company's service offering typically includes product engineering and design support, printed circuit board assembly, box-build and systems assembly, automated test and inspection, aftermarket repair and refurbishment, and end-to-end supply chain and logistics management.

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Celestica delivered a strong Q2, beating EPS and revenue estimates, and raised full-year guidance across revenue, EPS, margin, and free cash flow. CLS's Connectivity & Cloud Solutions segment drove 84% YoY growth, with mass production for hyperscaler customers expected in 2026, fueling AI-related upside. Management now forecasts 2027 revenue growth to accelerate beyond 65%, outpacing consensus and signaling robust forward demand visibility.