Celestica Reports $3.19B Quarterly Revenue, Exceeding Guidance by 27.8%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2025
0mins
Should l Buy CLS?
Source: NASDAQ.COM
- Significant Revenue Growth: Celestica reported quarterly revenues of $3.19 billion, reflecting a 27.8% year-over-year increase, surpassing management's guidance of $2.875 billion to $3.125 billion, indicating strong performance in the data center market.
- Product Portfolio Advantage: The company leverages a comprehensive suite of enterprise-level data communications and information processing infrastructure products to actively engage in the rapidly expanding AI infrastructure market, enhancing its competitive edge.
- Connectivity and Cable Solutions Surge: Net sales from the Connectivity and Cable Solutions portfolio soared 43.2% year-over-year to $2.41 billion, primarily driven by robust demand for 800G and 400G switching products in the data center networking sector.
- Optimistic Future Outlook: Management anticipates future revenues between $3.325 billion and $3.575 billion, reflecting confidence in sustained growth in the data center market, with an expected year-over-year increase of 36%.
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Analyst Views on CLS
Wall Street analysts forecast CLS stock price to rise
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 274.790
Low
305.00
Averages
376.73
High
440.00
Current: 274.790
Low
305.00
Averages
376.73
High
440.00
About CLS
Celestica Inc. is engaged in designing, manufacturing and providing hardware platform and supply chain solutions. It delivers supply chain solutions globally to customers in two operating segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment consists of its ATS end market and comprises its Aerospace & Defense (A&D), Industrial, HealthTech, and Capital Equipment businesses. Its Capital Equipment business comprises its semiconductor, display, and robotics equipment businesses. The CCS segment consists of its communications and enterprise end markets. The enterprise end market consists of Celestica’s servers and storage businesses. It offers a range of product manufacturing and related supply chain services to customers in both of its segments, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, systems integration, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Volatility Impact: Technology stocks have experienced a volatile start to 2026, with the Nasdaq Composite showing flat performance primarily due to concerns over capital expenditures for AI infrastructure, resulting in a staggering $1 trillion loss in market cap for big tech stocks in just one week, reflecting cautious market sentiment regarding future growth.
- IonQ's Huge Potential: Despite a 21% drop in IonQ's stock price in 2026, a 12-month median price target of $73 from 14 analysts suggests a potential 105% upside, indicating strong market confidence in its quantum computing technology, especially after achieving a 99.99% fidelity in 2-qubit gates.
- Celestica's Growth Drivers: Celestica has benefited from the buildout of AI data centers, with its stock surging 54% over the past six months, and it expects a 50% increase in its connectivity and cloud solutions business in 2026, significantly boosting revenue, particularly through partnerships with major hyperscalers.
- Optimistic Industry Outlook: Celestica anticipates revenues of $17 billion in 2026, a 37% increase from last year, and if its market value aligns with the Nasdaq index, it could reach $92 billion, showcasing its strong growth potential in the AI sector and attracting investor interest.
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- Securities Fraud Investigation: Pomerantz LLP is investigating on behalf of Celestica Inc. investors whether the company and its executives have engaged in securities fraud or other unlawful business practices, highlighting serious concerns regarding corporate governance.
- Stock Price Decline: On January 22, 2026, Celestica's stock price fell by 6.08%, losing $18.83 per share to close at $290.92, following reports from Digitimes that Google may shift assembly work for its tensor processing units to other suppliers, reflecting market concerns about the company's future business prospects.
- Risk of Client Loss: Google's potential move could reduce Celestica's role in assembling AI servers, impacting its revenue streams and market share, which may further exacerbate investor anxiety.
- Potential for Legal Action: As the investigation unfolds, Celestica may face the risk of class action lawsuits, prompting investors to closely monitor developments to assess the potential impact on the company's financial health.
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- Holding Status: This acquisition marks a new position for Chase, which did not previously hold shares in Clearwater, highlighting its strategy to diversify investments despite not being among the top five holdings.
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- Acquisition Dynamics: Private equity firms Permira and Warburg Pincus have agreed to acquire Clearwater for $8.4 billion, or $24.55 per share, suggesting that if Chase's purchase timing is favorable, it could yield significant gains, but investors should be wary of potential risks if the deal does not materialize.
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Celestica Under Investigation for Securities Fraud
- Investigation Launched: Pomerantz LLP is investigating on behalf of Celestica Inc. investors regarding potential securities fraud or unlawful business practices, indicating serious concerns about corporate governance.
- Stock Price Decline: Following Digitimes' report that Alphabet may shift assembly work for its tensor processing units to other suppliers, Celestica's stock fell 6.08% on January 22, 2026, losing $18.83 per share, reflecting market concerns about its future business prospects.
- Potential Impact: A reduced role in assembling Google’s AI servers could negatively affect Celestica's revenue and market share, exacerbating investor anxiety and uncertainty.
- Legal Consequences: As a prominent securities litigation firm, Pomerantz LLP may provide legal support to affected investors, and if wrongdoing is confirmed, Celestica could face substantial liability for damages.
See More
Celestica Inc. Stock Plummets Despite Strong Earnings Outlook
- Stock Price Drop: Celestica Inc. experienced a significant 13.10% decline in stock price on Thursday, closing at $300 per share, ending a four-day winning streak as strong earnings expectations were already priced in.
- Net Income Surge: The updated report indicates that Celestica's net income for 2025 is projected to soar by 94% to $832.5 million from $428 million in 2024, with Q4 alone contributing $267.5 million, a 76% increase year-over-year.
- Revenue Growth: The company reported a 28% increase in annual revenue to $12.39 billion, while Q4 revenue rose by 4.4% to $3.65 billion, reflecting robust demand for AI-related technologies.
- Optimistic Future Outlook: Celestica raised its revenue forecast for 2026 to $17 billion and plans to increase capital investments to $1 billion, demonstrating confidence in long-term AI infrastructure investments and strategic growth plans.
See More
Tech Stocks Volatility Amid AI Infrastructure Investment
- Market Volatility Impact: Technology stocks have experienced a volatile start to 2026, with the Nasdaq Composite showing flat performance primarily due to concerns over capital expenditures for AI infrastructure, resulting in a staggering $1 trillion loss in market cap for big tech stocks in just one week, reflecting cautious market sentiment regarding future growth.
- IonQ's Huge Potential: Despite a 21% drop in IonQ's stock price in 2026, a 12-month median price target of $73 from 14 analysts suggests a potential 105% upside, indicating strong market confidence in its quantum computing technology, especially after achieving a 99.99% fidelity in 2-qubit gates.
- Celestica's Growth Drivers: Celestica has benefited from the buildout of AI data centers, with its stock surging 54% over the past six months, and it expects a 50% increase in its connectivity and cloud solutions business in 2026, significantly boosting revenue, particularly through partnerships with major hyperscalers.
- Optimistic Industry Outlook: Celestica anticipates revenues of $17 billion in 2026, a 37% increase from last year, and if its market value aligns with the Nasdaq index, it could reach $92 billion, showcasing its strong growth potential in the AI sector and attracting investor interest.
See More
Celestica Under Investigation for Securities Fraud Claims
- Securities Fraud Investigation: Pomerantz LLP is investigating on behalf of Celestica Inc. investors whether the company and its executives have engaged in securities fraud or other unlawful business practices, highlighting serious concerns regarding corporate governance.
- Stock Price Decline: On January 22, 2026, Celestica's stock price fell by 6.08%, losing $18.83 per share to close at $290.92, following reports from Digitimes that Google may shift assembly work for its tensor processing units to other suppliers, reflecting market concerns about the company's future business prospects.
- Risk of Client Loss: Google's potential move could reduce Celestica's role in assembling AI servers, impacting its revenue streams and market share, which may further exacerbate investor anxiety.
- Potential for Legal Action: As the investigation unfolds, Celestica may face the risk of class action lawsuits, prompting investors to closely monitor developments to assess the potential impact on the company's financial health.
See More
Celestica (CLS.US) Executive Plans to Sell $33.1 Million in Common Stock via Form 144
- Stock Sale Announcement: Officer Phillips Jason intends to sell 120,000 shares of its common stock on February 5.
- Market Value: The total market value of the shares being sold is approximately $33.1 million.
See More
Chase Investment Counsel Acquires Clearwater Analytics Shares
- New Investment Position: Chase Investment Counsel reported a new position in Clearwater Analytics, acquiring 237,532 shares valued at $5.7 million, which represents 1.6% of its reportable assets as of December 31, 2025, indicating confidence in the company.
- Holding Status: This acquisition marks a new position for Chase, which did not previously hold shares in Clearwater, highlighting its strategy to diversify investments despite not being among the top five holdings.
- Market Performance: Clearwater's stock closed at $23.46 on February 4, with a market capitalization of $6.8 billion; however, the stock has declined by 17.4% over the past year, underperforming compared to the Nasdaq and S&P 500 indices, reflecting market caution regarding its future.
- Acquisition Dynamics: Private equity firms Permira and Warburg Pincus have agreed to acquire Clearwater for $8.4 billion, or $24.55 per share, suggesting that if Chase's purchase timing is favorable, it could yield significant gains, but investors should be wary of potential risks if the deal does not materialize.
See More
Celestica Under Investigation for Securities Fraud
- Investigation Launched: Pomerantz LLP is investigating on behalf of Celestica Inc. investors regarding potential securities fraud or unlawful business practices, indicating serious concerns about corporate governance.
- Stock Price Decline: Following Digitimes' report that Alphabet may shift assembly work for its tensor processing units to other suppliers, Celestica's stock fell 6.08% on January 22, 2026, losing $18.83 per share, reflecting market concerns about its future business prospects.
- Potential Impact: A reduced role in assembling Google’s AI servers could negatively affect Celestica's revenue and market share, exacerbating investor anxiety and uncertainty.
- Legal Consequences: As a prominent securities litigation firm, Pomerantz LLP may provide legal support to affected investors, and if wrongdoing is confirmed, Celestica could face substantial liability for damages.
See More
Celestica Inc. Stock Plummets Despite Strong Earnings Outlook
- Stock Price Drop: Celestica Inc. experienced a significant 13.10% decline in stock price on Thursday, closing at $300 per share, ending a four-day winning streak as strong earnings expectations were already priced in.
- Net Income Surge: The updated report indicates that Celestica's net income for 2025 is projected to soar by 94% to $832.5 million from $428 million in 2024, with Q4 alone contributing $267.5 million, a 76% increase year-over-year.
- Revenue Growth: The company reported a 28% increase in annual revenue to $12.39 billion, while Q4 revenue rose by 4.4% to $3.65 billion, reflecting robust demand for AI-related technologies.
- Optimistic Future Outlook: Celestica raised its revenue forecast for 2026 to $17 billion and plans to increase capital investments to $1 billion, demonstrating confidence in long-term AI infrastructure investments and strategic growth plans.
See More
