Celestica's Rise: Is It Too Late to Buy?

Celestica Inc. stocks have been trading up by 7.95 percent amid robust quarterly earnings surpassing market expectations.

Latest Performance Highlights:

RBC Capital recently raised Celestica’s price target from $225 to $315. The decision was driven by strong AI investments and winning new programs, which suggest healthy revenue and margin growth through FY26 and FY27.

Celestica’s projected FY26 EPS is expected at $8.20, surpassing market expectations of $7.22, while the revenue forecast is pegged at $16.0 billion, exceeding the $14.14 billion consensus.
CIBC also increased Celestica’s price target from $245 to $315, maintaining an Outperform rating. The enhancement comes due to solid Q3 guidance and positive outlook fueled by tech giants’ capital expenditure plans.
Anticipation for Celestica’s Q4 EPS ranges between $1.65 and $1.81, significantly greater than the consensus estimate of $1.52, coupled with a revenue outlook of $3.33 billion to $3.58 billion against the expected $3.10 billion.
The company reveals an increase in its FY25 projections, with a new EPS view of $5.90 from $5.50, and revenue goals improving to $12.2 billion from $11.55 billion.

Live Update At 14:02:49 EST: On Tuesday, October 28, 2025 Celestica Inc. stock [NYSE: CLS] is trending up by 7.95%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Exploring Celestica’s Financial Trajectory

Trading is a complex field that requires not only skill but also strategy and discipline. It’s crucial for traders to focus on protecting their capital rather than just seeking the next opportunity. As Tim Bohen, lead trainer with StocksToTrade says, “For me, trading is more about managing risk than finding the next big mover.” This mindset emphasizes the importance of risk management, ensuring that traders can navigate the financial markets successfully over the long term by minimizing potential losses and securing consistent gains.

Celestica Inc., distinguished by its stock symbol CLS, has been on a remarkable ascent in recent months. The company’s latest financial report paints a picture of thriving health and optimism. In Q3, Celestica surpassed analyst predictions by reporting an EPS of $1.58, against a forecast of $1.49. Additionally, Celestica recorded revenues of $3.19 billion, higher than the anticipated $3.04 billion. The steady rise in earnings, paired with substantial revenue growth, has fueled an optimistic forecast for the coming quarters.

Looking deeper into the company’s financial metrics, the underlying figures display positivity amid an invigorated fiscal landscape. The key profitability indicators are impressive, including an EBIT margin of 6.7%, and a gross margin of 11.3%. These values portray a strong foothold in efficiency, crucial for sustaining momentum in the upcoming fiscal cycles. The ability to sustain a pre-tax profit margin at 3.5% further amplifies their financial health.

Financial strength, marked by a robust total debt to equity ratio of 0.5 and a solid current ratio of 1.4, contributes to Celestica’s resilience in managing debt while maintaining operational liquidity. Celestica’s return on equity at an impressive 13.74%, reaffirms its proficiency in generating returns for shareholders.

Turning the lens on their balance sheet, Celestica boasts a strong cash position with $313.8 million in cash and equivalents. With an inventory worth $1.91 billion and accounts receivable stacking up to $2.29 billion, the company’s ability to handle obligations without scruple is evident. Its capabilities shine through with forward-looking revenue and EPS views for FY25 and FY26, both surpassing market anticipations, hinting at significant upward mobility.

Investment in tech infrastructure from industry behemoths like Google, Meta, Amazon, and Open AI plays a pivotal role in Celestica’s outlook. Expected uplift from multiple design wins in the 1.6T switch domain indicates tremendous growth avenues.

More Breaking News

These favorable conditions and strategic victories translate into heightened confidence from market analysts, reflected in raised price targets from market influencers including RBC Capital and CIBC Capital Markets.

Market Movement and Analyst Projections

The impressive financials and strategy executions translate to favorable market conditions for Celestica. Analysts’ predictions optimistically project an upward trajectory, fueled by Celestica’s robust relationship with emergent tech players who catalyze growth through capital infusions in AI and networking domains.

Celestica’s strategic focus on high-demand sectors is likely to yield dynamic growth opportunities. Both RBC and CIBC’s price target enhancements echo the seasoned readiness of Celestica to capitalize on the wave of digital transformation driven by high-end networking demand and AI innovations. The company’s strong footing in new program wins reinforces forecasts of steady revenue augmentation and margin expansion through FY26 and FY27.

Moreover, Celestica’s Q4 expectations for elevated EPS and revenue, above consensus estimates, remain bolstered by solid performance in the preceding quarters. These forecasts highlight a fiscal trajectory shaped by a favorable network of partnerships and client loyalty across tech giants.

Celestica’s consistent upward revisions on earnings share and revenue forecasts speak volumes of their operational vigor. Industry experts, confident in the company’s strategic direction, foresee sustainable earnings progression continuing into FY26 and FY27.

The most recent expansion in price targets from distinguished financial authorities, such as Goldman Sachs initiating coverage with a Buy rating and a $340 price target, has further inflated investor confidence in Celestica.

Conclusion

In today’s competitive marketplace, Celestica Inc. emerges as a compelling story of resilience, ambition, and strategic execution. The recent flurry of positive rating changes and heightened targets underscores an enhanced market sentiment and reflects a strong performance outlook. Amid a flourishing demand for networking equipment and growing AI advancements, Celestica is set par excellence to ride the waves of futuristic technological developments. However, whether its impressive climb is still worth the buy-in remains a query for traders to deliberate cautiously. As Tim Bohen, lead trainer with StocksToTrade says, “I never chase price. The best opportunities allow me to enter on my terms, not when I’m feeling pressured.” This prudent consideration remains vital for those analyzing Celestica’s market position.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

Looking to level up your trading game? Explore StocksToTrade, the ultimate platform for traders. With powerful tools designed for swing and day trading, integrated news scanning, and even social media monitoring, StocksToTrade keeps you one step ahead.

Check out our quick startup guide for new traders!

Ready to build your watchlists? Check out these curated lists:

Once your watchlist is set, take the next step and trade with confidence using StocksToTrade’s robust platform. Don’t miss out — grab your 14-day trial for just $7 and experience the edge you need to thrive in today’s fast-paced markets.

Start Your Trial Now!