Celestica Inc. research snapshot
CLS AI stock analysis as of the August 2, 2026 data cutoff reads Celestica as a high-growth AI infrastructure and advanced technology manufacturing partner that delivered a large Q2 2026 beat and raised its 2026 outlook. The stock closed at $331.44 on July 31, 2026, down 6.00% on the day, with a market capitalization near $38.02 billion, re-verified during this full refresh as $331.44 times 114.98 million shares with a 0.23% deviation. Q2 2026 revenue rose 62% to $4.70 billion, adjusted EPS rose 83% to $2.54 against a $2.32 consensus, adjusted operating margin reached a record 8.2%, and SEC EDGAR XBRL confirms GAAP net income of $368.8 million. CCS segment revenue grew 84% to $3.81 billion on hyperscaler networking and AI compute programs, including 800G and 400G switches plus a 167% jump in enterprise revenue, while the ATS segment grew 8% to $888 million. Management raised 2026 revenue guidance to $20.5 billion, adjusted EPS to $11.30, adjusted operating margin to 8.4%, and free cash flow to $600 million, and pointed to OpenAI custom rack deliveries later in 2026 with the Jalapeno accelerator and a multi-billion dollar AMD Helios scale-up opportunity in 2027. Offsetting this is a rich valuation of about 34x trailing EPS and 73x trailing free cash flow, extreme volatility with a 52-week range of $173.23 to $474.03 and a beta of 1.52, three customers that together accounted for 63% of Q2 revenue, and the fact that the stock sits below its 20-day, 50-day, and 100-day moving averages after falling from the June high. The page presents a scenario framework, not a certain price prediction, and is for information only.
Current price
$331.44
Market cap
$38.02 billion
AI score
72 / 100
Rating
Exceptional AI infrastructure execution at a rich valuation
Trend status
Above the 200-day moving average but below the 20-day, 50-day, and 100-day averages after a volatile post-earnings pullback
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Celestica designs, builds, and manages supply chains for communications, enterprise hardware, aerospace and defense, industrial, health technology, and capital-equipment customers, with current momentum concentrated in hyperscaler networking and AI compute infrastructure. | High |
| Moat | Program qualification, manufacturing execution, design engineering, component sourcing, global scale, and customer integration create switching friction, but contract manufacturing remains competitive, customer bargaining power is material, and three customers supplied 32%, 17%, and 14% of Q2 2026 revenue. | Medium-high |
| Management | CEO Rob Mionis and CFO Mandeep Chawla delivered a Q2 2026 beat with record 8.2% adjusted operating margin, raised 2026 revenue to $20.5 billion and adjusted EPS to $11.30, secured OpenAI custom rack and AMD Helios scale-up programs, and kept leverage low at 0.5x gross debt to adjusted EBITDA while prioritizing reinvestment over buybacks. | Medium-high |
| Financial trend | Q2 2026 revenue rose 62% to $4.70 billion and adjusted EPS rose 83% to $2.54 with a record 8.2% adjusted operating margin, and the full-year outlook was raised to $20.5 billion revenue, $11.30 adjusted EPS, 8.4% margin, and $600 million free cash flow, with 2027 revenue growth expected to exceed the 65% pace. | High |
| Valuation | At $331.44, financial_rigor.py calculated about 34.45x trailing EPS, 15.37x book value, and 73.49x trailing free cash flow, with a forward PE near 29x on the 2026 consensus adjusted EPS of $11.38. That leaves little room for demand, margin, or supply disappointment. | High |
| Technical trend | The stock closed at $331.44 on July 31, 2026, above its 200-day moving average of $327.13 but below its 20-day average of $335.21, 100-day of $350.94, and 50-day of $360.51, with RSI near 47.64 and 14-day ADX near 14.13, a mixed intermediate setup inside a longer uptrend. | Medium |
| Risk level | Risk is high because beta is 1.52, 14-day historical volatility is near 97.76%, the 52-week range is $173.23 to $474.03, AI infrastructure demand can be cyclical, component lead times exceed 52 weeks for some products, and large customer programs can change quickly. | High |
| AI confidence | High data confidence for filings, mechanical valuation checks, and the Q2 2026 results that matched SEC EDGAR XBRL. Medium confidence for future growth, price scenarios, and technical setups because they depend on supply, margins, customer programs, and sentiment. | High data confidence |
| Investment certainty | Medium certainty. The business is executing well and the outlook was raised, but a rich valuation, extreme volatility, customer concentration, and a fast-moving AI spending cycle make the margin of safety limited. | Medium |
CLS AI stock forecast
The CLS AI stock forecast uses three-year scenario ranges around the July 31, 2026 close of $331.44. It is not a claim that AI can predict a specific price. The bullish case needs demand visibility, operating leverage, and an elevated valuation multiple to hold. The base case assumes continued growth with slower normalization. The bearish case assumes that demand, margins, or the multiple weaken.
$800 to $950
More likely if hyperscaler AI compute, 800G and 1.6T networking, OpenAI custom racks, and the AMD Helios scale-up ramp as planned, adjusted EPS compounds toward $34 to $40 by 2028, and investors hold the stock near a 22x to 25x earnings multiple.
$470 to $580
More likely if adjusted EPS grows along the consensus path toward about $19.46 in 2027 and near $26 by 2028, the company meets the raised 2026 outlook, and the exit multiple moderates toward 18x to 20x as the business grows into expectations.
$190 to $280
More likely if AI infrastructure orders slow, component supply limits production, a large program changes, margins compress, working capital absorbs cash, or the market re-rates cyclically exposed earnings near 14x to 16x.
CLS AI technical analysis
This CLS AI technical analysis uses the July 31, 2026 close of $331.44 and should be refreshed on a live chart before any trade. The stock sits above the 200-day moving average but below the 20-day, 100-day, and 50-day averages after a -6.00% day on July 31, and the wide 52-week range shows that volatility remains extreme.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $331.44 | StockAnalysis.com real-time quote at the July 31, 2026 close, down 6.00% on the day; market cap math uses 114.98 million shares outstanding. |
| Near support | $318 to $327 | The 200-day moving average was $327.13 and the July 27, 2026 close was $318.24, forming a first pullback support cluster. |
| Next support | $289 to $305 | The July 24, 2026 close of $305.28 and the July 27 intraday low of $289.26 are the next downside references before the longer-term trend is tested. |
| Near resistance | $335 to $351 | The 20-day moving average near $335.21 and the 100-day near $350.94 cap the immediate bounce. |
| Next resistance | $360 to $378 | The 50-day moving average near $360.51 and the July 31 intraday high of $374.50 are the next overhead levels. |
| 50-day moving average | $360.51 | Barchart and StockAnalysis.com both reported the 50-day average near $360.51 on July 31, 2026, above the current price. |
| 200-day moving average | $327.13 | Barchart and StockAnalysis.com both reported the 200-day average near $327.13, below the current price and the key long-trend reference. |
| 100-day moving average | $350.94 | Barchart reported the 100-day moving average near $350.94 on July 31, 2026, between the current price and the 50-day average. |
| Momentum | RSI near 47.6, ADX near 14 | 14-day RSI was near 47.64, neutral, and 14-day ADX near 14.13, signaling a weak or ranging trend rather than a confirmed breakout or breakdown. |
| Volume | About 2.4 to 2.6 million average shares | Barchart listed 20-day average volume near 2.58 million shares and StockAnalysis.com near 2.41 million on July 31, 2026, with volume spiking to 7.72 million shares on July 28 after the earnings release. |
| Volatility | Extreme, beta 1.52 | Barchart reported 14-day historical volatility near 97.76% and beta near 1.52, so position sizing should account for large swings around earnings and guidance. |
| Invalidation | Close below $327 | A sustained close below the 200-day moving average near $327 would weaken the long-trend thesis; a close below the $289 July low would confirm a deeper correction. |
CLS AI trading strategy
The CLS AI trading strategy is a rules-based research framework, not personalized advice. It combines technical confirmation with evidence from hyperscaler demand, program wins, margins, cash conversion, component supply, and the next earnings release.
Wait for CLS to reclaim and hold the 50-day area near $360 with improving volume, then confirm that quarterly revenue, adjusted EPS, margins, and hyperscaler program demand continue to support the move.
Do not treat a single intraday move as confirmation. Define position size and reduce confidence if price fails back below the reclaimed zone or the 200-day average near $327.
If CLS stabilizes near the $318 to $330 support cluster without deterioration in Q3 guidance, cash conversion, component supply, or customer demand, assess whether the risk-reward is better than at a momentum high.
Do not average down solely because the share price fell. A close below the 200-day area near $327 and then below the $289 July low are technical invalidation signals.
Track the Q3 earnings date, revenue and adjusted EPS guidance, CCS versus ATS mix, 800G and 1.6T switch ramps, OpenAI custom rack and AMD Helios progress, free cash flow, inventory and receivables, debt, and customer concentration.
Lower the rating if growth decelerates, cash conversion weakens, or margin guidance declines while the stock retains a premium earnings multiple near 34x trailing earnings.
Investment research summary
Celestica helps complex hardware customers turn designs into manufactured systems and managed supply chains, with current momentum concentrated in hyperscaler networking, AI compute, and storage infrastructure.
The moat is execution rather than monopoly: design engineering of nearly 2,000 engineers, program qualification, sourcing, quality systems, global manufacturing, and the cost of changing a production program. Competition and customer concentration limit pricing power.
The thesis can fail if AI capital spending slows, component supply stays constrained, a large program changes, margins compress, inventory or receivables grow faster than cash flow, leverage rises, or investors re-rate the stock as a cyclical manufacturer.
Management delivered a Q2 2026 beat, raised the 2026 outlook to $20.5 billion revenue and $11.30 adjusted EPS, and secured OpenAI custom rack and AMD Helios scale-up programs. The key question is whether it can preserve capital discipline while capacity, working capital, and customer programs expand.
Data-center buildouts, cloud networking, 800G and 1.6T switches, co-packaged optics, and AI compute are long-term demand drivers. Hardware supply chains remain cyclical, capital intensive, and exposed to customer budgets, component availability, trade rules, and technology transitions.
The July 31 reference price implied about 34x trailing EPS and 73x trailing free cash flow. Strong results can support a premium, but the valuation offers limited protection if earnings growth, the market multiple, or the AI spending cycle normalizes.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| CLS price and market capitalization | $331.44 close on July 31, 2026; $38.02 billion reported market cap; $330.00 after-hours | StockAnalysis.com quote | August 2, 2026 |
| Shares and market-cap verification | 114.98 million shares; $331.44 x 114.98 million = $38.11 billion, a 0.23 percent difference from the reported $38.02 billion | StockAnalysis.com and financial_rigor.py market-cap verification | August 2, 2026 |
| Q2 2026 revenue and net income | $4.699 billion revenue, up 62% from $2.893 billion; $368.8 million GAAP net income, confirmed by SEC EDGAR XBRL | Celestica Q2 2026 Form 10-Q and SEC EDGAR XBRL | August 2, 2026 |
| Q2 2026 adjusted results | Adjusted EPS $2.54, up 83%, beat $2.32 consensus by 9.5%; record 8.2% adjusted operating margin, up 80 basis points; adjusted gross margin 11.5%, down 20 basis points | Celestica Q2 2026 earnings release and call | August 2, 2026 |
| Q2 2026 segment results | CCS $3.81 billion, up 84%, 81% of revenue with 8.7% margin; communications up 62%, enterprise up 167%, HPS $1.9 billion up 58% at 41% of revenue; ATS $888 million, up 8%, 19% of revenue with 6.3% margin | Celestica Q2 2026 earnings call | August 2, 2026 |
| Customer concentration | Three customers each accounted for 10% or more of Q2 2026 revenue at 32%, 17%, and 14% | Celestica Q2 2026 earnings call | August 2, 2026 |
| Q3 2026 guidance | Revenue $5.25 billion to $5.55 billion, up 69% at midpoint; adjusted EPS $2.88 to $3.08, up 89% at midpoint; adjusted operating margin 8.4%; communications up about 60%, enterprise up about 190%, ATS mid-teens | Celestica Q2 2026 earnings call | August 2, 2026 |
| FY2026 raised outlook | Revenue raised to $20.5 billion from $19 billion, up 65%; adjusted EPS raised to $11.30 from $10.15, up 87%; adjusted operating margin 8.4% from 8.1%; free cash flow raised to $600 million; about $1 billion planned CapEx; CCS up about 85%, ATS up about 10% | Celestica Q2 2026 earnings call | August 2, 2026 |
| 2027 outlook | Revenue growth expected to accelerate beyond the 65% 2026 pace, with adjusted EPS growth outpacing revenue growth; OpenAI custom racks for the Jalapeno accelerator with Broadcom planned for mass production in 2027; AMD Helios scale-up a multi-billion dollar 2027 pipeline | Celestica Q2 2026 earnings call | August 2, 2026 |
| Q2 2026 cash flow | Free cash flow of $147 million in Q2 and $285 million year to date; CapEx of $264 million or 5.6% of revenue; cash cycle days of 47, down 19 year over year and 8 sequentially | Celestica Q2 2026 earnings call | August 2, 2026 |
| Cash and debt | $536 million cash and $740 million gross debt, net debt of $204 million as of June 30, 2026; gross debt to non-GAAP trailing 12-month adjusted EBITDA of 0.5x; about $2.3 billion available liquidity | Celestica Q2 2026 earnings call | August 2, 2026 |
| SEC EDGAR XBRL cash | $535.7 million cash and cash equivalents as of June 30, 2026 | SEC EDGAR XBRL company concept | August 2, 2026 |
| SEC EDGAR XBRL total debt | $810.4 million total debt including current maturities as of June 30, 2026, made up of $784.0 million long-term and $26.4 million current | SEC EDGAR XBRL company facts and Q2 2026 Form 10-Q | August 2, 2026 |
| H1 2026 results | H1 2026 revenue of $8.746 billion and net income of $581.1 million, confirmed by SEC EDGAR XBRL | Celestica Q2 2026 Form 10-Q and SEC EDGAR XBRL | August 2, 2026 |
| FY2025 results | $12.391 billion revenue, up 28.46%; net income of $832.5 million; EPS of $7.16; free cash flow of $458.3 million | Celestica FY2025 Form 10-K and StockAnalysis.com | August 2, 2026 |
| TTM financials | TTM revenue of $15.59 billion, net income of $1.12 billion, EPS of $9.62, operating cash flow of $1.14 billion, free cash flow of $518.7 million | StockAnalysis.com statistics | August 2, 2026 |
| Valuation check | 34.06x trailing EPS, 2.44x sales, 15.33x book value, 73.30x trailing free cash flow, EV/EBITDA of 24.63; financial_rigor.py computed 34.45x trailing EPS and 73.49x P/FCF | StockAnalysis.com statistics and financial_rigor.py | August 2, 2026 |
| Forward valuation | Forward PE near 29.1x on the 2026 consensus adjusted EPS of $11.38, and about 17x on the 2027 consensus of $19.46; the StockAnalysis statistics page shows 21.46x using a blended next-twelve-month estimate | StockAnalysis.com forecast and statistics | August 2, 2026 |
| Analyst consensus | Strong Buy with an average target of $471.70 across 20 analysts, low $385, median $485, and high $550, about 42% above the July 31 close | StockAnalysis.com forecast | August 2, 2026 |
| Analyst rating mix, July 2026 | 16 Strong Buy, 4 Buy, 1 Hold, 0 Sell, 0 Strong Sell out of 21 analysts | StockAnalysis.com forecast recommendation trends | August 2, 2026 |
| Recent analyst target updates | CIBC $480 to $500, Stifel $445 to $500, JPMorgan $445 to $485, Wolfe $425 to $475, BMO and Argus $450, RBC $440 to $450, UBS $400 to $410, Barclays $441 to $430 | StockAnalysis.com forecast and TipRanks | August 2, 2026 |
| 2026 and 2027 consensus estimates | FY2026 revenue estimate $20.56 billion with adjusted EPS $11.38; FY2027 revenue estimate $33.51 billion with adjusted EPS $19.46; FY2026 free cash flow estimate $650.51 million | StockAnalysis.com forecast | August 2, 2026 |
| Short interest | 3.02 million shares short, 2.65% of shares outstanding, 1.79 days to cover | StockAnalysis.com statistics short selling | August 2, 2026 |
| Technical snapshot | 20-day SMA near $335.21, 50-day SMA near $360.51, 100-day SMA near $350.94, 200-day SMA near $327.13, 14-day RSI near 47.64, 14-day ADX near 14.13, 14-day historical volatility near 97.76%, beta 1.52 | Barchart and StockAnalysis.com technical snapshots | August 2, 2026 |
| 52-week range | $173.23 to $474.03, with the $474.03 high reached on June 2, 2026 | StockAnalysis.com quote and history | August 2, 2026 |
This CLS AI stock analysis is an informational research tool, not investment advice, a recommendation, or a promise of future return. Forecast ranges are scenarios based on available filings, quote snapshots, and third-party data as of the stated cutoff date. They may be wrong, incomplete, or outdated after new earnings, customer program changes, supply shifts, market moves, or macro conditions.
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