It’s not very common to see a stock skyrocket over 2,600% in just three years. But that’s exactly what Celestica (TSX:CLS) stock has done. Based in Toronto, this global player designs and manufactures hardware platforms, and provides supply chain solutions for data centres, artificial intelligence (AI), and advanced tech industries. At the time of writing, CLS stock was trading at $419.27 per share with a market cap of $48 billion.
And the best part is, its strong momentum doesn’t seem to be fading anytime soon. With AI exploding across market sectors, Celestica’s positioning in the AI-driven data centre space is opening up massive growth opportunities. Let me quickly walk you through three solid reasons why CLS stock looks too good to ignore right now, and why it could still deliver much more upside.
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Record growth in the middle of an AI boom
Interestingly, Celestica stock has jumped by nearly 256% in the last year alone, and over 4,400% in five years. While that might seem like a stock that has already run its course, its accelerating financial growth trends suggest this ride may just be getting started.
In the third quarter, Celestica’s revenue jumped 28% YoY (year-over-year) to US$3.2 billion. More importantly, its adjusted quarterly earnings soared by 52% YoY to US$1.58 per share – beating analysts’ estimates and the company’s own guidance. The company’s profitability in the latest quarter was mainly lifted by strong demand from hyperscalers investing in AI infrastructure.
Its connectivity and cloud solutions segment, which includes the company’s AI hardware platform solutions, saw its revenue climb nearly 43% YoY in the latest quarter.
Solid execution and upgraded outlooks
The second clearest reason to buy CLS stock now is its habit of raising the bar – and then beating it. Recently, the company upgraded its full-year 2025 outlook. It’s now expecting full-year revenue to hit US$12.2 billion and adjusted earnings to reach US$5.90 per share, higher than its prior projections.
On the brighter side, Celestica’s early guidance for 2026 looks even more impressive. The company expects US$16 billion in revenue and US$8.20 per share in adjusted earnings – reflecting solid growth. These expectations are based on continued strength from Celestica’s largest customers, many of whom are ramping up spending on AI data infrastructure.
Meanwhile, strong execution is also clearly seen in its profitability. In the latest quarter, Celestica’s adjusted net profit margin expanded to 5.7%, while its adjusted return on invested capital stood firm at 37.5% – both reflecting notable improvements from a year ago.
Investing for the future with innovative solutions
Instead of just riding the AI wave, Celestica is also preparing for it. Earlier this month, it launched the SD6300 storage platform, one of the densest and most compact solutions in the industry. Designed for AI-heavy workloads and enterprise storage, this system allows hyperscalers and large enterprises to pack more storage into less space while cutting down on operating costs.
At the same time, the company is investing heavily in new platforms, engineering talent, and design innovation to stay ahead of AI-driven demand.
These solid fundamental factors mean Celestica’s long-term story now looks even brighter – giving its stock the potential to keep soaring in the years to come.
