Celestica shares fell about 15% after the company reported record fourth-quarter 2025 results and lifted its 2026 revenue outlook to $17 billion. The stock was trading at $401.12 as of April 20th, even after the drop.
The Toronto-based company reported fourth-quarter revenue of $3.6 billion, up 44% from a year earlier, and earnings per share of $1.89, a 70% increase. Celestica also said operating margin reached 7.7% and return on invested capital hit 43.1%, both record levels for the company.
The numbers point to a business that is gaining leverage from AI infrastructure demand. Celestica, which provides supply chain solutions in Asia, North America and internationally, said its Connectivity & Cloud Solutions segment accounted for 78% of revenue and grew 64% as hyperscaler spending on AI hardware continued to flow through the chain. That work includes 800G networking and next-generation compute programs, while the company said its strategic partnership with Google remains intact and that it is positioned as a key manufacturing partner for TPU systems.
Investors are still weighing how much of that growth can be sustained. Celestica’s trailing price-to-earnings ratio was 56.02 and its forward P/E was 44.64, according to Yahoo Finance, levels that leave little room for disappointment after a run that has pushed CLS stock up about 347.77% since March 2025. The company also said it plans $1 billion in capital spending for 2026, a fivefold increase, and warned that its upgraded revenue outlook assumes possible supply constraints rather than demand weakness.
That distinction matters because the latest quarter also raised the company’s dependence on a narrow slice of customer demand. Celestica said 71 hedge fund portfolios held CLS at the end of the fourth quarter, up from 62 in the prior quarter, adding another sign that the stock has drawn attention even as concerns linger over AI capex fatigue and customer concentration. For now, the market is treating Celestica as a bigger AI hardware winner than a conventional industrial supplier, but the next test is whether the company can keep shipping at the pace its new outlook implies.
