Celestica Shares Drop Amid Google Order Shift Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 27 Jan 26
Celestica shares rose 5% as the stock reached a 5-day high, reflecting positive market conditions.
However, the stock's recent gains are overshadowed by concerns following a report that Google is shifting its TPU assembly orders to other suppliers, including Inventec. This shift raises questions about Celestica's future revenue and market share in the competitive AI server market, despite the company projecting $16 billion in revenue by 2026 and a non-GAAP EPS of $1.58 that beat estimates.
The market's reaction indicates a cautious outlook for Celestica, as investors weigh the impact of Google's decision against the company's strong earnings performance and growth potential in the AI infrastructure sector.
Analyst Views on CLS
Wall Street analysts forecast CLS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLS is 376.73 USD with a low forecast of 305.00 USD and a high forecast of 440.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 345.230
Low
305.00
Averages
376.73
High
440.00
Current: 345.230
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.
