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Celestica (TSX:CLS) has raised its 2026 revenue outlook, citing strong demand tied to AI related data center technologies.
The company points to deeper, multi year alignment with customers on AI infrastructure investments as a key driver.
The revision marks a material shift in business expectations and comes alongside fresh analyst attention on the stock.
For investors watching AI infrastructure, Celestica sits directly in the flow of spending on data center hardware and related services. The shares last closed at CA$390.87, with a very large 3 year return and a similarly large 5 year return, while the 1 year return is 108.2%. That mix of strong multi year performance and a reset in nearer term returns, including a 3.2% decline over the past week and a 10.4% decline over the past month, frames how the market is reacting to new information.
The raised 2026 outlook indicates that management views current AI related demand as more than a short term spike, supported by customer commitments that extend over several years. For investors, the key issues to watch now are how consistently those AI infrastructure programs convert into revenue and how Celestica manages execution risk as the order book shifts further toward data center focused work.
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TSX:CLS Earnings & Revenue Growth as at Feb 2026
We’ve flagged 1 risk for Celestica. See which could impact your investment.
Raising the 2026 revenue outlook to US$17b, supported by AI related data center demand and multi year customer commitments, pushes Celestica further into the same conversation as contract manufacturers serving hyperscale cloud spending. The focus on white box switches and custom ASIC accelerated servers places it closer to the hardware build out that is also relevant for players like Foxconn, Flex or Jabil. At the same time, the plan to lift 2026 capital expenditure to US$1b indicates the business model is leaning more heavily into capacity and technology investment tied to AI. For you as an investor, that combination of higher targeted revenue and higher spend raises the stakes on execution, contract profitability and customer concentration as AI programs scale.
The higher 2026 outlook and AI focused capex align with the narrative that hyperscaler demand and next generation networking are driving growth in Celestica’s core operations business.
The increased reliance on a concentrated set of cloud and AI customers could challenge the narrative if any of those hyperscalers slow spending or shift volumes to other suppliers.
The push into ultra dense storage hardware, such as the SD6300 platform, adds a specific AI storage angle that is not fully reflected in the broader narrative about networking and compute programs.
Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Celestica to help decide what it’s worth to you.
⚠️ Heavier capex, with US$1b planned for 2026, raises the risk that returns on these AI focused investments fall short if customer orders change or product ramps are delayed.
⚠️ Revenue concentration in large hyperscaler customers means any shift in AI infrastructure plans or supplier mix could have an outsized effect on Celestica’s order book.
🎁 Strong demand for AI data center hardware and multi year customer alignment can increase visibility on future workloads and support more consistent utilization of facilities.
🎁 Exposure to areas such as white box switches, custom accelerated servers and ultra dense storage could give Celestica a role across several layers of the AI data center stack.
From here, you might want to watch how quickly AI related programs convert into booked revenue against the US$17b target and whether margins hold up as mix shifts toward data center infrastructure. It is also worth tracking updates on capacity additions, the cadence of new product introductions and any commentary on customer concentration or contract terms in AI hardware. Analyst reactions, including changes in coverage and target prices, can provide signals on how the market is reassessing execution risk and long term demand tied to AI spending.
To stay up to date on how the latest news impacts the investment narrative for Celestica, head to the community page for Celestica to follow the top community narratives.
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.
Companies discussed in this article include CLS.TO.
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