Summary

• Celestica remains a Strong Buy, driven by its unique position in the AI hardware value chain and robust Q1 2026 results.
• CLS's CCS segment, focused on high-speed switches and integrated AI hardware, grew 76% YoY and now represents 80% of revenue.
• Enterprise division revenue surged 101% YoY, with projections for 130% growth next quarter, underlining hyperscaler-driven demand.
• Stronger-than-expected EPS forecasts support meaningful upward revisions to our price targets.

Since I wrote my last article about Celestica (CLS) in February, the shares have risen almost 25%, well above the 7.5% growth of the S&P 500 (SP500). I wrote that

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of CLS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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