Key Takeaways CLS expects 2025 sales to rise 13.1% and EPS to grow 30.1% with strong demand for AI-driven data solutions. Flex sees 50% growth in cloud/data center power and anticipates continued strength into fiscal 2026. FLEX trades at a lower forward P/E of 14.49 versus CLS at 22.72, making it more attractive on valuation.Celestica Inc. (CLS) and Flex Ltd. (FLEX) are two leading players in the electronics manufacturing services (EMS) industry. Celestica is one of the largest EMS companies in the world, ...

Key Takeaways CLS stock jumped 24.3% in 3 months, beating FLEX, JBL and the broader industry's 15.4% gain. Celestica is riding GenAI momentum with high-speed switches and scalable AI storage platforms. Earnings estimates for CLS rose 5.7% for 2025 and 2.4% for 2026, signaling bullish sentiment.Celestica Inc. (CLS) has gained 24.3% over the past three months compared with the industry’s growth of 15.4%. It has also outperformed peers like Flex Ltd. (FLEX) and Jabil Inc. (JBL) . Flex has gained 17.3% and Ja ...

Core Insights - Celestica Inc. (CLS) has outperformed the industry and peers with a stock gain of 24.3% over the past three months, compared to the industry's 15.4% growth and Flex Ltd. (FLEX) and Jabil Inc. (JBL) gains of 17.3% and 14.7% respectively [1][7]. Company Overview - With over two decades of manufacturing experience, Celestica focuses on next-generation, cloud-optimized data storage and AI networking solutions, operating primarily as a behind-the-scenes partner for electronics businesses [2]. - The company provides a comprehensive range of services in the electronics market, including design, manufacturing, and supply chain management [2]. Growth Drivers - The ongoing generative AI (GenAI) boom has significantly benefited Celestica, driven by strong demand for AI/ML compute and networking products from hyperscale customers [5]. - Key products include the high-performance 800G family of network switches and storage solutions like the SC6100 controller and SD6200 platform, which are essential for AI applications [5][6]. - Celestica's innovative Photonic Fabric solution enhances AI infrastructure, supporting scalable and sustainable business models [5]. Financial Performance - Earnings estimates for Celestica have increased by 5.7% for 2025 to $5.05 and by 2.4% for 2026 to $6.07, indicating positive sentiment regarding the company's growth potential [8][7]. Market Environment - Despite strong demand trends, Celestica expresses skepticism about the macro environment due to trade policy uncertainties, although recent U.S. government exemptions for key IT hardware provide some near-term clarity [9]. - The company is actively collaborating with customers to navigate the evolving policy landscape [9]. Challenges - Celestica faces ongoing margin pressures due to high research and development costs associated with sophisticated products, leading to high operating expenses [10][15]. - The company competes with industry giants like Foxconn, Jabil, Flex, and Sanmina Corporation, as well as smaller regional players, in a highly cyclical semiconductor industry [11]. Future Outlook - As production volumes increase and costs decrease, the potential applications for silicon photonics are expected to expand across various industries, positioning Celestica for sustained growth [14].

Celestica Inc. (CLS) has gained 98.8% over the past year compared with the industry’s growth of 36.4%. It has also outperformed peers like Flex Ltd. (FLEX) and Jabil Inc. (JBL) . Flex has gained 26.7% and Jabil is up 25.9% over this period.  Celestica boasts a diverse portfolio of products that are integral to AI (artificial intelligence) applications. With more than 25 years of experience in manufacturing backed by a simplified and optimized global network, it is committed to delivering next-generation, cl ...