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Home/News Feed/Celestica posts 62% revenue growth driven by AI demand, with shares seen rising 27% by 2027.

CLS

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+$8.70 +2.83%

Celestica posts 62% revenue growth driven by AI demand, with shares seen rising 27% by 2027.

Analyst Insights

27 Aug 2026

Seeking Alpha

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Bullish

Celestica reported a strong quarter with 62% revenue growth and 83% adjusted EPS growth, fueled by high demand for AI infrastructure. The Communications and Cloud Solutions segment accounted for 81% of sales, with server and storage revenue up 167% year-over-year. Improved product mix and AI-related programs expanded adjusted EBITDA margins by 80 basis points, enhancing profitability. The ramp-up of OpenAI’s Jalapeño chip could further boost Celestica’s systems integration business and margins through 2027. A valuation using a 25-times earnings multiple for fiscal 2027 suggests a share price of $393, indicating over 27% upside from current levels.

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