In This Article:
Celestica Inc. CLS has gained 98.8% over the past year compared with the industry’s growth of 36.4%. It has also outperformed peers like Flex Ltd. FLEX and Jabil Inc. JBL. Flex has gained 26.7% and Jabil is up 25.9% over this period.
Celestica boasts a diverse portfolio of products that are integral to AI (artificial intelligence) applications. With more than 25 years of experience in manufacturing backed by a simplified and optimized global network, it is committed to delivering next-generation, cloud-optimized data storage and industry-leading networking solutions to help customers balance performance, power efficiency and space as technologies evolve.
One-Year CLS Stock Price Performance
Image Source: Zacks Investment Research
CLS Gains From AI Thrust
Celestia has benefited from the ongoing generative AI boom, thanks to the solid demand trends for AI/ML (machine learning) compute and networking products from hyperscale customers. In addition to the high-performance 800G family of network switches (which are vital for data centers that power AI applications) and storage solutions like the SC6100 controller and SD6200 platform (which provide efficient and scalable data storage for AI), Celestia offers Photonic Fabric – an optical compute and memory fabric solution capable of supercharging AI infrastructure. This transformational solution provides a foundational technology to advance AI while maintaining scalable, sustainable and profitable business models.
By integrating next-generation networking products with silicon photonics packaging solutions, Celestica aims to optimize supply chain solutions to reduce time to market. The data center switches combined with optical transceivers have the potential to handle and sustain high volumes of both inbound and outbound network traffic and cater to the demand for data center bandwidth for supporting AI/ML and data analytics applications.
Image Source: Zacks Investment Research
Estimate Revision Trend
Earnings estimates for Celestia for 2025 have moved up 5.7% to $5.05 over the past 60 days, while the same for 2026 has improved 2.4% to $6.07. The positive estimate revision depicts optimism about the stock’s growth potential.
Image Source: Zacks Investment Research
CLS Raises Guidance
Buoyed by solid demand trends, the company has raised its guidance for 2025. It anticipates 2025 revenues to be $10.85 billion, up from the previous projection of $10.7 billion. Non-GAAP operating margin is expected to be 7.2%, higher than the previous outlook of 6.9%. Non-GAAP adjusted earnings are expected to be $5 per share, up from the previous outlook of $4.75.