Why Celestica (TSX:CLS) Jumped After Raising Guidance and Welcoming Laurette T. Koellner Back

• Celestica Inc. recently reported strong third-quarter results, with sales of US$3.19 billion and net income of US$267.8 million, while also raising its full-year 2025 revenue guidance to US$12.2 billion and providing robust revenue expectations for 2026.
• An important highlight is Celestica's upward revision of its guidance amid ongoing share repurchase activity and the return of Laurette T. Koellner to its Board of Directors.
• We’ll examine how the significant raise in annual revenue guidance informs Celestica’s investment narrative and future growth outlook.

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Celestica Investment Narrative Recap

To be a Celestica shareholder today, you need conviction in the company’s ability to consistently win hyperscaler and AI infrastructure business, maintain margin growth, and manage large customer concentration risks. The recent upward revision to annual revenue guidance confirms strong near-term demand in its core markets but does not materially change the main catalyst, AI and cloud ramp momentum, or meaningfully reduce the ongoing risk from high revenue dependence on a few large customers.

Among the latest announcements, the Board’s approval of a new share repurchase program stands out. While this move may support shareholder value in the short term, the company’s fundamental exposure to demand cycles in hyperscale and cloud infrastructure remains the factor most likely to drive performance, regardless of repurchase activity.

But even with new buybacks and big revenue headlines, investors should also take note of how concentrated customer relationships could suddenly shift and impact future results...

Read the full narrative on Celestica (it's free!)

Celestica's outlook anticipates $17.4 billion in revenue and $992.0 million in earnings by 2028. This scenario assumes a 17.9% annual revenue growth rate and a $453.6 million increase in earnings from the current $538.4 million.

Uncover how Celestica's forecasts yield a CA$565.81 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Within the Simply Wall St Community, 19 unique fair value estimates for Celestica range widely from CA$146.41 to CA$565.81 per share. As momentum in hyperscaler and AI-related demand drives growth expectations, it is clear that market participants see performance possibilities from multiple angles worth considering.

Explore 19 other fair value estimates on Celestica - why the stock might be worth as much as 25% more than the current price!

Build Your Own Celestica Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Celestica research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Celestica research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Celestica's overall financial health at a glance.

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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.

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