Celestica (TSX:CLS) is a Canadian progress inventory that has mesmerized traders with market-beating performances over the previous three years, with greater than a 2,100% acquire. The tech inventory took a breather late final 12 months, however CLS might take off on one other rally in 2026 following administration’s latest outlook updates.
Some progress shares are constructed on hype and hole guarantees. Others are constructed on actual income contracts, money flow-positive operations, and enterprise operations positioned precisely on the intersection of the world’s strongest progress megatrends. Celestica inventory is within the latter camp, and right here’s why it might do nicely for growth-seeking traders this 12 months.
Celestica: A {hardware} associate for a rising AI megatrend
Toronto-based Celestica is a expertise options firm that designs, manufactures, and ships the {hardware} that powers the fashionable digital financial system. Knowledge centre servers, synthetic intelligence (AI) networking switches, communications gear, and cloud infrastructure are a few of its income traces. Its shoppers, which embody the world’s largest hyperscalers, have dedicated a whole bunch of billions into constructing AI infrastructure over the following three years, and the corporate just lately upgraded its outlook for 2026.
Whereas the market continues to be debating which AI software program firms will win the income and earnings progress race, Celestica is quietly shovelling the picks and shovels to all of them, making boatloads of money from AI-related offers.
CLS inventory’s progress observe document
Efficiency is the place Celestica inventory will get genuinely thrilling. A $2,000 funding in CLS inventory three years in the past could be value roughly $46,200 at present.
However right here’s what issues much more than the previous: Celestica’s income progress is accelerating.
In 2025, Celestica reported income of US$12.4 billion, up 28.5% 12 months over 12 months and beating its personal steering. Internet earnings surged by 94.5%, powered by increasing working leverage and a surge in its high-margin Communications section — the division that serves hyperscale information centre clients instantly.
Celestica’s working margins are bettering. Income is thrashing estimates. And the corporate is elevating steering.
In a latest earnings replace in January, Celestica raised its income steering for 2026 from $16 billion to $17 billion and elevated its adjusted earnings per share (EPS) steering from $8.20 to $8.75. This steering implies a 37% annual income progress charge and a 44.6% sequential improve in EPS for 2026! Income and earnings progress is accelerating, and administration’s outlook is supported by “anticipated stronger buyer demand….”
The worldwide AI spending spree is ongoing, and Celestica is on the epicentre via its connectivity and cloud options (CCS) section, which has change into a sustainable progress engine for the enterprise. The corporate has been deepening relationships with its clients, profitable long-term contracts and increasing its product design capabilities. This might imply stickier revenues, higher working margins and widening moats with each new information centre constructed.
Why a $2,000 funding in Celestica inventory is sensible proper now
Regardless of a latest run, Celestica inventory nonetheless trades a ahead P/E of 31.6, and a ahead price-earnings-to-growth (PEG) ratio of 1, which suggests shares fetch an affordable value given the enterprise’s earnings progress potential.
Now, some traders may have a look at a CLS inventory that has already gained greater than 2,100% over three years and marvel in the event that they missed the boat. The priority is honest, however Celestica’s run nonetheless has some momentum. The AI information centre spending spree might prolong for one more 5 years, Celestica’s income progress charge is accelerating nonetheless, and the corporate nonetheless has scale benefits to capitalize on.
Furthermore, administration has a demonstrated observe document of delivering on and exceeding its monetary targets.
With $2,000 to spend money on February 2026, you’d be shopping for into an organization that trades at an affordable a number of relative to its earnings progress trajectory. That’s a uncommon valuation provide within the AI infrastructure house, the place many pure-play software program names commerce at nose-bleed valuations.