With global trade tensions and economic uncertainty lingering, several TSX-listed firms are either struggling now or bracing for slower growth. But moments like these often separate the laggards from the leaders. Celestica (TSX:CLS) has clearly placed itself in the latter category. By beating its own guidance and crushing Bay Street analysts’ expectations with strong revenue growth and higher earnings, the company has shown that its strategy is delivering real results.
On top of that, it is leaning into opportunities in artificial intelligence (AI) infrastructure and high-performance computing through its latest storage platform launch. In this article, I’ll highlight why Celestica is a top TSX stock that has not only outperformed but could be gearing up for even bigger gains in the years ahead.
What Celestica does and where the stock stands
If you don’t know it already, Celestica is a Toronto-headquartered electronics manufacturing services provider for leading brands across aerospace and defence, healthcare, industrial, communications, and enterprise sectors.
In recent years, CLS stock has been on a remarkable run. In the past year alone, the stock has surged nearly 265%, and over the past three years it has gained more than 1,690%. As a result, its shares are currently trading at $261.42, giving the company a market cap of about $29.9 billion.
Strong results beat expectations again
Celestica is continuing to turn surging demand in data infrastructure and cloud solutions into meaningful growth. For example, in the latest quarter ended in June, the company’s revenue climbed 21% YoY (year over year) to US$2.89 billion, surpassing guidance. Similarly, its adjusted earnings hit US$1.39 per share, up 54% from the same period last year.
Its margins tell an equally positive story as its adjusted earnings before interest, taxes, depreciation, and amortization margin in the latest quarter expanded to 8.6% from 7.8% a year earlier. These gains reflect Celestica’s continued focus on disciplined cost management and a better product mix.
Betting big on the future
You don’t want to invest in a company that’s executing well today but not investing for tomorrow. And Celestica seems to be striking the right balance. In the first week of August, the company launched the SC6110, a new enterprise storage controller built for peak performance and scalability.
Powered by AMD’s EPYC processors, the platform is designed to handle mission-critical workloads in AI, high-performance computing, and enterprise applications. This launch strengthens Celestica’s position in fast-growing AI markets that depend on advanced storage solutions.
Adding to the optimism, its management recently raised its full-year 2025 outlook. The company now expects revenue of US$11.55 billion, up from the earlier forecast of US$10.85 billion, and adjusted earnings of US$5.50 per share compared with the previous estimate of US$5 per share. That strong upgrade in guidance, in a year when many firms are cautious, clearly highlights Celestica’s strong execution and confidence in its markets.
Why this TSX stock could skyrocket
Celestica has already shown it can deliver when it matters most. With a strong balance sheet, an expanding product portfolio, and surging demand for AI-driven infrastructure, this TSX stock looks well-placed to keep its rally going.
