1 Canadian Stock That Comes Close to Perfect as a Long-Term Hold

Celestica stock continues to prove why it’s a standout long-term investment.

Key Points
  • Celestica (TSX:CLS) is seeing strong demand from AI, cloud, and data centre markets.
  • The company delivered 53% revenue growth with improved margins in its latest quarter.
  • Its growing role in tech infrastructure supports long-term expansion potential.

If you could pick just one stock to hold for the long run, what would it look like? Most investors would probably want the same things: strong upside, reliable earnings, and a business that can handle whatever the market throws at it. The challenge, of course, is finding a stock that actually checks all those boxes. While no company is entirely risk-free, some with solid fundamentals stand out for their ability to consistently deliver growth while maintaining financial stability.

Let’s take a closer look at one such Canadian stock that comes pretty close to that ideal — and understand why it may deserve a spot in your long-term portfolio.

Canadian Red maple leaves seamless wallpaper pattern

Source: Getty Images

Why Celestica stock continues to stand out

When it comes to long-term investing, businesses tied to big technology trends tend to shine, and Celestica (TSX: CLS) continues to prove its worth. This Toronto-based firm has become one of the most important players in the global tech supply chain, as it focuses on designing and manufacturing hardware platforms while also providing supply chain solutions to some of the world’s most advanced industries.

Its operations are mainly split into two main segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). While ATS serves sectors like aerospace and healthcare, CCS focuses on data centres, cloud infrastructure, and enterprise technology, areas that are seeing rapid growth.

CLS stock currently trades at $569.51 with a market cap of $65.5 billion. While it may not always move in a straight line, its long-term trajectory has been hard to ignore as it has delivered an outstanding 3,855% return over the last three years.

Strong financial growth driving momentum

Celestica’s latest results show just how quickly its business is expanding. In the first quarter of 2026, the company’s revenue rose 53% year-over-year (YoY) to US$4.1 billion. Its profitability improved along with that top-line growth, with its operating margin reaching 6.7%, up from 4.9% a year ago.

The biggest driver here is the CCS segment as the division’s revenue surged 76% YoY to US$3.2 billion, supported by strong demand from cloud and data centre customers. Within that, its Hardware Platform Solutions business grew 63% YoY, showing just how important Celestica has become in the artificial intelligence (AI) and cloud ecosystem.

Meanwhile, the ATS segment remained stable in revenue but improved margins to 6%, reflecting better efficiency.

Positioned at the centre of major tech trends

Clearly, Celestica’s growth is closely linked to some of the biggest trends in technology — including AI, cloud computing, and data centre expansion.

As companies invest more in these areas, they need advanced hardware and reliable supply chains. That’s exactly where Celestica stock fits in. Its ability to deliver complex, high-performance systems makes it a key partner for large tech customers.

Recently, the company raised its 2026 outlook, now expecting revenue of US$19 billion and adjusted earnings of US$10.15 per share. This reflects strong demand visibility and growing confidence in its growth path.

Strategic moves supporting long-term expansion

In addition to these solid financials, Celestica is also taking steps to support future growth as it recently expanded its credit facility to about US$2.5 billion, giving it the flexibility to invest in new growth opportunities.

It was recently awarded a program to design and manufacture a co-packaged optics Ethernet switch for a hyperscaler client. This advanced technology is designed for AI-scale networks and is expected to begin production in 2027. Meanwhile, the company is also continuing to secure new program wins, which could drive further growth into 2027 and beyond.

Why this stock looks like a long-term winner

Great long-term stocks usually have a few things in common: strong earnings growth, exposure to expanding industries, and a business model that keeps evolving. Celestica checks all of those boxes.

Its rapid revenue growth, improving margins, and increasing role in AI infrastructure make it a key enabler of the next generation of technology. These are some of the key reasons why Celestica comes very close to being a “set it and forget it” stock.

Fool contributor Jitendra Parashar has positions in Celestica. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy.

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