Over the past few years, Celestica Inc. CLS has been increasingly focusing on margin expansion driven by a structural shift in its business model. The company is leaning toward high-value, engineering-intensive offerings, resulting in sustained profitability improvements.

Celestica Inc. delivered a strong Q4 double beat, with revenue rising 44% year-over-year and adjusted EPS surging 70%, supported by sustained operating leverage. The Connectivity and Cloud Solutions segment continues to drive margin expansion, with high-value platform design services increasing its share of total revenue significantly. AI infrastructure demand from hyperscalers is accelerating, with management guiding for continued growth into 2026 and 2027, driven by large-scale compute cluster deployments.

Understanding the Power Inflow Signal

TORONTO, March 24, 2026 (GLOBE NEWSWIRE) -- Celestica Inc. (NYSE: CLS) (TSX: CLS), a global leader in data center infrastructure and advanced technology solutions, today announced that Michael Wilson will retire as Chair of Celestica's Board of Directors (the “Board”) effective as of immediately prior to its Annual Meeting of Shareholders (“2026 Annual Meeting”) on May 19, 2026 and will not stand for re-election as a director at the 2026 Annual Meeting. Effective as of immediately prior to the 2026 Annual Meeting, Rob Mionis, current President and Chief Executive Officer, will assume the role of the Chair of the Board (the “Board Chair”) and Laurette Koellner, a veteran member of the Board, will be appointed as Lead Independent Director.

As the AI infrastructure bottleneck shifts from GPUs and memory to networking, Celestica Inc. is increasingly well positioned to benefit through expanding exposure in high-speed switches, optical connectivity, and customized rack-scale infrastructure. The recent agentic AI inflection reinforces this opportunity by increasing compute intensity and infrastructure scale-out requirements, raising demand for faster interconnects and higher-bandwidth switching provided by Celestica. Celestica's growing mix of margin-accretive HPS programs, alongside the ongoing ramp of its 800G and upcoming 1.6T switch deployments, also reinforces visibility into CLS and its longer-term growth and earnings profile.

Tech stocks slid as the Iran war escalated and investors mulled the ramifications of supply chain disruptions, higher energy prices, inflation, and potential interest rate hikes. The broad selloff hit high-quality AI infrastructure and semiconductor stocks especially hard, including some that blew away earnings expectations. Tech sector earnings are expected to surge in Q1 2026 despite concerns over stretched valuations and AI-related capex spending.

Shares of Celestica Inc. (TSE: CLS - Get Free Report) (NYSE: CLS) have earned an average rating of "Strong Buy" from the seven brokerages that are currently covering the company, MarketBeat reports. One investment analyst has rated the stock with a hold rating, one has given a buy rating and five have given a strong buy rating

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In the closing of the recent trading day, Celestica (CLS) stood at $273.58, denoting a -2.97% move from the preceding trading day.

Celestica (CLS) is upgraded from 'Buy' to 'Strong Buy' as fundamentals improve and valuation becomes more attractive after a recent price dip. CLS benefits from sustained hyperscaler AI infrastructure investment and is expanding its moat through a strategic partnership with AMD on the Helios rack-scale AI platform. CLS's forward P/E for FY2028 is now well below 20, and its non-GAAP PEG ratio of 0.7 is materially below the sector average, supporting a compelling valuation.