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Celestica stock has moved into a bear market, mirroring the performance of other artificial intelligence (AI) companies. CLS dropped to $307 in New York, down by over 35% from its highest level this year.
Celestica is on a durable AI-driven growth path, but I see late-cycle risks and assign a Hold rating. CLS trades at 31x 2026 EPS guidance and 71x free cash flow, leaving little room for disappointment and suggesting likely multiple compression. 1.6T AI networking ramp supports near-term momentum, but hyperscaler capex digestion and potential overcapacity could trigger a sharp de-rating.
Celestica (CLS) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Celestica (CLS) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Celestica is well positioned in the AI hardware value chain, with HPS driving significant growth, but margins remain single-digit and value accrues upstream. HPS's share of revenue is set to rise from 21% in 2023 to 41% in 2025, reflecting strong execution on 1.6T programs and engineering investments. CLS trades at a demanding 35x earnings and 79x FCF, requiring 50%+ EPS growth and FCF above $1.2B by 2027 to justify the current valuation.
In the most recent trading session, Celestica (CLS) closed at $334.77, indicating a -2.97% shift from the previous trading day.
Consensus forecasts Celestica's revenue growth accelerating from 55.55% to 57.24% YoY through FY26, supported by the 1.6T networking production ramp. Analysts issued 16 upward EPS revisions and 13 revenue revisions, with zero downward revisions, reinforcing confidence ahead of July 28 earnings. Celestica has beaten EPS estimates in eight consecutive quarters and revenue in seven of the last eight, supporting expectations of another quarterly beat.
Full call transcripts — prepared remarks + analyst Q&A — with speaker-by-speaker formatting and one-click switching across every quarter on file.
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Transcripts source: company-published earnings calls. Speaker attribution and formatting are processed in-app.