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    Celestica (TSX:CLS) Updated Its Outlook, Is The Stock Still A Bargain?

    Simply Wall St·08/03/2026 23:30:52
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    How Celestica’s latest earnings and outlook set the stage

    Celestica (TSX:CLS) is back in focus after reporting second quarter 2026 results and updating its outlook. Investors now have fresh numbers on revenue, earnings and management’s expectations for the next few quarters.

    See our latest analysis for Celestica.

    The latest quarterly update has arrived after a sharp 1 day share price decline of around 6%, which follows a 7 day share price gain of about 8% and comes on the back of earlier earnings guidance and the completion of a small buyback tranche. Over a longer horizon, momentum still looks strong, with an 11.86% year to date share price return and a 1 year total shareholder return of 72.54% sitting alongside a very large 5 year total shareholder return.

    If Celestica’s earnings story has you thinking about other potential beneficiaries of AI hardware demand, this is a good moment to scan the market for 55 AI infrastructure stocks

    After a rapid run over the past year and a sharp pullback this week, Celestica now sits in a very different spot on many watchlists. Does it make more sense to commit at today’s price or wait for a deeper reset?

    Most Popular Narrative: 31.5% Undervalued

    Celestica’s most followed valuation narrative pegs fair value at CA$677.38 compared with the last close of CA$463.87, which points to a sizeable gap in expectations.

    Accelerated demand for advanced networking and AI infrastructure by hyperscaler customers is driving rapid growth in Celestica's CCS segment, with multiple new 800G and upcoming 1.6T program ramps, supporting revenue expansion and greater operating leverage over the next 12 to 24 months. Widespread digital transformation initiatives and technology transitions (AI/ML compute, next-gen racks) across hyperscalers and digital native customers are expanding Celestica's design pipeline and deepening customer engagements, which increases revenue visibility and improves per-customer revenue potential.

    Read the complete narrative.

    Want to see what sits behind that growth story for Celestica? The narrative focuses on compounding revenue, shifting margins, and a richer earnings mix over time.

    Result: Fair Value of CA$677.38 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, the Celestica narrative still depends heavily on a few large hyperscaler customers and on continued AI and cloud infrastructure spending. As a result, any slowdown or contract shift could quickly challenge those upbeat assumptions.

    Find out about the key risks to this Celestica narrative.

    Next Steps

    With both risks and rewards in play around Celestica, this is a good time to review the full picture and decide quickly where you stand. Start by weighing the 4 key rewards and 1 important warning sign

    Looking for more investment ideas beyond Celestica?

    If Celestica has sharpened your focus, now is the time to widen your watchlist and spot other stocks that match your goals before the crowd moves on.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.