Celestica (CLS) Drops 13% After Earnings — Here’s Why

Core Insights - Celestica Inc. (NYSE:CLS) experienced a significant decline of 13.10% in stock price, closing at $300, following a four-day winning streak, as strong earnings expectations were already priced in due to AI demand [1] Financial Performance - For the full year 2025, Celestica's net income increased by 94% to $832.5 million from $428 million in 2024, with the fourth quarter net income reaching $267.5 million, a 76% increase from $151.7 million year-over-year [2] - Revenues for the full year rose by 28% to $12.39 billion from $9.65 billion, while fourth quarter revenues increased by 4.4% to $3.65 billion from $2.54 billion [3] Future Outlook - Celestica raised its revenue outlook for 2026 to $17 billion and adjusted earnings per share to $8.75, driven by growing demand for AI-related data center technologies [3] - The company plans to increase capital investments to $1 billion this year, expecting to fund this expansion organically through operating cash flow, aligning with customers' long-term AI infrastructure investments [4]