The Single Biggest Reason to Buy Celestica Ahead of July 27 Q2 Earnings

2 months ago 23

Thomas Richmond

Thu, July 23, 2026 astatine 10:00 AM CDT 3 min read

Quick Read

CLS trades astatine a guardant P/E of 30 portion posting 53% gross maturation and sitting 30% beneath its 52-week high.
Celestica grows much than 4 times faster than Flex and runs margins astir 200 ground points supra Jabil's full-year guide.
Hyperscaler customers with committed AI capex anchor aboriginal revenue, with commitments including Google TPU systems and a 2027 Co-packaged Optics power win.
Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Celestica didn't marque the cut. Grab the names FREE today.

Celestica (NYSE:CLS) is 1 of the astir nonstop ways for a long-horizon portfolio to summation vulnerability to the AI infrastructure buildout close now. The institution designs and manufactures electronics and hardware for large exertion customers, earning gross by gathering products specified arsenic servers, networking equipment, and data-center systems.

AI INFRASTRUCTURE GROWTH," shows a greenish enactment graph and bluish barroom illustration illustrating gross maturation from 2021 to 2026, with Q1 FY26 gross marked arsenic up 52.8%. The last worth connected the chart's vertical axis is 3,350. Several glowing server racks are depicted down the graph, with bluish airy streams connecting to 1 server. The wide mounting is acheronian bluish with ambient lighting.

The institution is compounding gross north of 50% with expanding margins, absorption has raised full-year guidance doubly successful six months, and the banal trades astatine a guardant aggregate beneath its maturation rate. This is simply a pick-and-shovel play with visible 2027 programme wins already booked.

Celestica's AI Growth Is Accelerating

Q1 FY26 gross deed $4.05 billion, up 52.8% twelvemonth implicit year, with adjusted EPS of $2.16 beating the $2.08 consensus. That was the 5th consecutive EPS beat. Adjusted operating borderline printed 8.0%, a institution record, and the Connectivity & Cloud Solutions conception grew 76% twelvemonth implicit twelvemonth to $3.24 billion. Management raised FY26 guidance to $19.0 cardinal successful gross and $10.15 successful adjusted EPS, up from $17.0 cardinal and $8.75 conscionable 1 4th earlier.

The Valuation Has Not Caught Up With the Growth

At $335.50, CLS trades astatine a forward P/E of 30 against quarterly net maturation of 147.3% twelvemonth implicit year. The Street statement people sits astatine $448, with 20 of 21 analysts standing it Buy oregon Strong Buy and zero Sells. The banal is inactive trading roughly 30% beneath its 52-week precocious of $474.02, giving caller buyers a discount to a sanction that returned 113.82% implicit the past year.

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Why Celestica Is Crushing Its EMS Peers

Flex (NASDAQ:FLEX) and Jabil (NYSE:JBL) are the evident EMS (Electronics Manufacturing Services) alternatives, and neither is keeping up. Flex grew FY26 gross conscionable 8.14% to $27.9 cardinal with an adjusted operating borderline of 6.5% successful its astir caller quarter. Jabil's Q3 FY26 gross roseate 11.8% twelvemonth implicit twelvemonth against a full-year halfway operating borderline usher of 5.8%.

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