Celestica Inc. (NYSE:CLS) has emerged as a standout in IT hardware, capitalizing on surging demand for AI infrastructure and cloud solutions. The Canadian electronics manufacturer beat expectations in fiscal 2025.
Q4 and full-year 2025 results exceeded analyst forecasts. Revenue grew 37%. The company raised its FY2026 guidance by ~$1 billion, which analysts called conservative.
15 analysts revised earnings estimates upward. Capital expenditures will quintuple in 2026, signaling management confidence.
The Communications and Cloud Solutions segment drives growth. Hyperscale capex is expected to grow 40% in 2026. Celestica's AI switching and compute pipeline positions it well.
Risks include customer concentration, competition, and demand normalization. The stock trades at a P/E of 44.3 but a PEG of 0.34 suggests reasonable valuation relative to growth.
