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CLS crushed the tech sector over the last five years as tech giants flock to its industry-leading offerings.
The AI data center infrastructure stock is projected to more than double EPS and sales between 2025 and 2027.
Celestica Inc. (CLS - Free Report) is an AI data center infrastructure stock that’s projected to more than double its earnings and revenue between 2025 and 2027—after doubling both its top and bottom lines between 2021 and 2025.
The electronics manufacturing services powerhouse’s earnings outlook surged again following its Q1 2026 earnings release on April 27, extending its run of upward EPS revisions and landing Celestica its Zacks Rank #1 (Strong Buy). CLS raised its 2026 guidance as the AI spending boom heats up.
Celestica is working directly with multiple AI hyperscalers, making it a pure-play investment in the ongoing AI buildout, which will soon be measured in trillions of dollars in annual capex.
Celestica is in the middle of a massive multi-year upgrade cycle for AI data centers, with customers flocking to its existing, market-leading 800G solutions and its next-generation 1.6T offerings, which mark double the switch capacity.
Despite soaring to new all-time highs in 2026 and crushing Nvidia and countless other AI giants over the last several years, Celestica’s earnings growth outlook makes the stock look somewhat cheap on the valuation front.
CLS stock also quickly found support at a key technical range after some post-earnings profit-taking.
Best Tech Stocks to Buy Now and Hold: Celestica
Celestica is an electronics manufacturing services standout. CLS specializes in designing, engineering, and manufacturing products for companies across AI infrastructure, cloud computing, semiconductor capital equipment, and much more.
CLS operates two reportable units: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). Celestica’s services across these segments include Design and Engineering, Manufacturing Services, Logistics and Fulfillment, Precision Machining, Product Licensing Services, and beyond.
Image Source: Zacks Investment Research
The company’s product offerings span storage, compute, networking, and software. Celestica’s AI data center-focused business is booming as demand soars across its servers and storage unit.
Celestica is in the middle of a massive multi-year upgrade cycle for AI data centers.
Celestica expects its business to keep growing faster through the rest of 2026. The firm is ramping up production of 800G networking equipment for AI data center customers.
On top of that, CLS said it will begin building even more advanced 1.6T equipment for two AI Hyperscalers.
Image Source: Zacks Investment Research
The firm, back in October, announced its “new family of 1.6TbE data center switches to power AI/ML clusters.”
Celestica’s newest tech represents the “doubling of switch capacity compared to Celestica’s existing, market-leading 800G solutions…” The new cutting-edge offerings provide a “comprehensive set of AI routing features and interconnect options, designed to meet the demands of AI clusters.”
The AI Tech Stock’s Soaring Earnings and Revenue Growth
Celestica, which went public in the late 1990s, supercharged its growth over the last several years as it thrives in the AI data center boom.
It averaged 22% revenue growth between FY22-FY25, more than doubling its revenue from $5.64 billion in 2021 to $12.39 billion in 2025.
The AI data center infrastructure company posted even more staggering GAAP earnings growth, skyrocketing from $0.83 a share in 2021 to $7.16 a share in 2025.
Image Source: Zacks Investment Research
The company posted another beat and raise quarter on April 27. Celestica’s consensus FY26 earnings estimate surged 12% since then, with its FY27 estimate 14% higher, helping CLS earn its Zacks Rank #1 (Strong Buy).
Celestica’s new, higher-speed solutions are projected to drive strong growth in 2027 as it wins more business. The AI tech infrastructure firm said that its enterprise AI/ML (artificial intelligence and machine learning) compute segment is projected to “ramp through 2026,” with CLS expecting “strong momentum continuing into 2027, supported by next-generation programs.”
On the AI hyperscaler front, its strength is fueled by a strong demand outlook into 2027.
AI remains the driver of another record year of capex spending in 2026. Hyperscalers are projected to spend $600 billion to $800 billion, up from roughly $400 billion in 2025. Peaking ahead, new reports predict that AI hyperscaler capex will hit $1.1 trillion in 2027.
Image Source: Zacks Investment Research
Celestica is projected to grow its revenue by 54% in 2026 to reach $19 billion and then post 41% sales expansion next year to hit $26.90 billion—easily doubling 2025’s $12.39 billion.
The company has also reached a profitability pivot point after a decade-plus of stagnation. Its adjusted earnings are set to soar 63% in 2026 and another 45% next year, more than doubling from $6.05 in 2025 to $14.33 in 2027.
Image Source: Zacks Investment Research
Plus, its most accurate estimates came in above the already improved consensus to match Celestica’s own adjusted EPS (non-GAAP) guidance of $10.15 a share in 2026.
The chart above highlights Celestica’s longer-term AI-boosted earnings outlook.
Buy Soaring CLS Stock for Value and Upside
Celestica stock soared ~5,100% in the past five years, crushing the Zacks Tech sector’s 108%, its highly-ranked Electronics - Manufacturing Services industry’s 745%, and Nvidia’s ((NVDA - Free Report) ) 1,300%.
CLS has ripped 355% higher in the last 12 months, blowing away Nvidia’s 75% and Tech’s 52%.
Image Source: Zacks Investment Research
The AI data center stock’s run snapped an extended period of underperformance that helped it skyrocket beyond its previous 2000 peaks into a new trading range.
CLS stock is trading right near its new all-time highs after it quickly found buyers at its 2025 highs following a short-lived post-earnings selloff.
Image Source: Zacks Investment Research
Celestica’s huge earnings growth outlook helps make it look like a value play right now compared to where it’s been in recent years. This is all the more impressive since it’s trading right near its all-time highs in terms of price.
It’s trading at a 31% discount to its recent highs at 39.2X forward 12-month earnings and nearly in-line with its median.
Better still, Celestica trades at a 28% discount to the Tech sector with a price/earnings-to-growth (PEG) ratio of 0.87.
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Bull of the Day: Celestica Inc. (CLS)
Key Takeaways
Celestica Inc. (CLS - Free Report) is an AI data center infrastructure stock that’s projected to more than double its earnings and revenue between 2025 and 2027—after doubling both its top and bottom lines between 2021 and 2025.
The electronics manufacturing services powerhouse’s earnings outlook surged again following its Q1 2026 earnings release on April 27, extending its run of upward EPS revisions and landing Celestica its Zacks Rank #1 (Strong Buy). CLS raised its 2026 guidance as the AI spending boom heats up.
Celestica is working directly with multiple AI hyperscalers, making it a pure-play investment in the ongoing AI buildout, which will soon be measured in trillions of dollars in annual capex.
Celestica is in the middle of a massive multi-year upgrade cycle for AI data centers, with customers flocking to its existing, market-leading 800G solutions and its next-generation 1.6T offerings, which mark double the switch capacity.
Despite soaring to new all-time highs in 2026 and crushing Nvidia and countless other AI giants over the last several years, Celestica’s earnings growth outlook makes the stock look somewhat cheap on the valuation front.
CLS stock also quickly found support at a key technical range after some post-earnings profit-taking.
Best Tech Stocks to Buy Now and Hold: Celestica
Celestica is an electronics manufacturing services standout. CLS specializes in designing, engineering, and manufacturing products for companies across AI infrastructure, cloud computing, semiconductor capital equipment, and much more.
CLS operates two reportable units: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). Celestica’s services across these segments include Design and Engineering, Manufacturing Services, Logistics and Fulfillment, Precision Machining, Product Licensing Services, and beyond.
Image Source: Zacks Investment Research
The company’s product offerings span storage, compute, networking, and software. Celestica’s AI data center-focused business is booming as demand soars across its servers and storage unit.
Celestica is in the middle of a massive multi-year upgrade cycle for AI data centers.
Celestica expects its business to keep growing faster through the rest of 2026. The firm is ramping up production of 800G networking equipment for AI data center customers.
On top of that, CLS said it will begin building even more advanced 1.6T equipment for two AI Hyperscalers.
Image Source: Zacks Investment Research
The firm, back in October, announced its “new family of 1.6TbE data center switches to power AI/ML clusters.”
Celestica’s newest tech represents the “doubling of switch capacity compared to Celestica’s existing, market-leading 800G solutions…” The new cutting-edge offerings provide a “comprehensive set of AI routing features and interconnect options, designed to meet the demands of AI clusters.”
The AI Tech Stock’s Soaring Earnings and Revenue Growth
Celestica, which went public in the late 1990s, supercharged its growth over the last several years as it thrives in the AI data center boom.
It averaged 22% revenue growth between FY22-FY25, more than doubling its revenue from $5.64 billion in 2021 to $12.39 billion in 2025.
The AI data center infrastructure company posted even more staggering GAAP earnings growth, skyrocketing from $0.83 a share in 2021 to $7.16 a share in 2025.
Image Source: Zacks Investment Research
The company posted another beat and raise quarter on April 27. Celestica’s consensus FY26 earnings estimate surged 12% since then, with its FY27 estimate 14% higher, helping CLS earn its Zacks Rank #1 (Strong Buy).
Celestica’s new, higher-speed solutions are projected to drive strong growth in 2027 as it wins more business. The AI tech infrastructure firm said that its enterprise AI/ML (artificial intelligence and machine learning) compute segment is projected to “ramp through 2026,” with CLS expecting “strong momentum continuing into 2027, supported by next-generation programs.”
On the AI hyperscaler front, its strength is fueled by a strong demand outlook into 2027.
AI remains the driver of another record year of capex spending in 2026. Hyperscalers are projected to spend $600 billion to $800 billion, up from roughly $400 billion in 2025. Peaking ahead, new reports predict that AI hyperscaler capex will hit $1.1 trillion in 2027.
Image Source: Zacks Investment Research
Celestica is projected to grow its revenue by 54% in 2026 to reach $19 billion and then post 41% sales expansion next year to hit $26.90 billion—easily doubling 2025’s $12.39 billion.
The company has also reached a profitability pivot point after a decade-plus of stagnation. Its adjusted earnings are set to soar 63% in 2026 and another 45% next year, more than doubling from $6.05 in 2025 to $14.33 in 2027.
Image Source: Zacks Investment Research
Plus, its most accurate estimates came in above the already improved consensus to match Celestica’s own adjusted EPS (non-GAAP) guidance of $10.15 a share in 2026.
The chart above highlights Celestica’s longer-term AI-boosted earnings outlook.
Buy Soaring CLS Stock for Value and Upside
Celestica stock soared ~5,100% in the past five years, crushing the Zacks Tech sector’s 108%, its highly-ranked Electronics - Manufacturing Services industry’s 745%, and Nvidia’s ((NVDA - Free Report) ) 1,300%.
CLS has ripped 355% higher in the last 12 months, blowing away Nvidia’s 75% and Tech’s 52%.
Image Source: Zacks Investment Research
The AI data center stock’s run snapped an extended period of underperformance that helped it skyrocket beyond its previous 2000 peaks into a new trading range.
CLS stock is trading right near its new all-time highs after it quickly found buyers at its 2025 highs following a short-lived post-earnings selloff.
Image Source: Zacks Investment Research
Celestica’s huge earnings growth outlook helps make it look like a value play right now compared to where it’s been in recent years. This is all the more impressive since it’s trading right near its all-time highs in terms of price.
It’s trading at a 31% discount to its recent highs at 39.2X forward 12-month earnings and nearly in-line with its median.
Better still, Celestica trades at a 28% discount to the Tech sector with a price/earnings-to-growth (PEG) ratio of 0.87.