Celestica Raises 2026 Outlook As AI Data Center Demand Shapes Valuation

Celestica (TSX:CLS) has raised its 2026 revenue outlook, citing stronger demand for AI focused data center technologies. The company is aligning new capital investment with multi year infrastructure programs at large customers. Management highlights AI related data center build outs as a key driver of its updated guidance. Celestica, a hardware and services provider for data centers and other complex electronic systems, is leaning into the AI hardware build out as large customers commit to multi year infrastructure plans. The refreshed 2026 revenue outlook is closely tied to these longer contracts, with AI related data center equipment at the center of the story for TSX:CLS. For you as an investor, the focus is less on a single year and more on how AI data center spending shapes Celestica's order visibility and capacity planning. The higher revenue outlook and focused capital spending indicate where the company is concentrating its efforts, which can help you consider how, or if, TSX:CLS fits into your broader view of AI infrastructure suppliers. Stay updated on the most important news stories for Celestica by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Celestica. TSX:CLS Earnings & Revenue Growth as at Feb 2026 We've flagged 1 risk for Celestica. See which could impact your investment. Quick Assessment ✅ Price vs Analyst Target: At CA$390.87, Celestica trades about 30% below the CA$556.49 analyst target, with the target range stretching to roughly CA$585.50. ❌ Simply Wall St Valuation: The shares are trading about 123.8% above Simply Wall St's estimated fair value, which flags an overvaluation on that model. ❌ Recent Momentum: The 30 day return of about 10.4% decline shows recent weakness despite the upgraded 2026 outlook. There is only one way to know the right time to buy, sell or hold Celestica: head to Simply Wall St's company report for the latest analysis of Celestica's Fair Value. Key Considerations 📊 The raised 2026 revenue outlook tied to AI data center demand reinforces Celestica's position as a key supplier to large infrastructure programs. 📊 Keep an eye on how AI related order bookings, capacity investments, and any changes to analyst targets evolve against the current P/E of 39.56. ⚠️ One flagged risk is recent significant insider selling over the past 3 months, which some investors may weigh against the strong growth narrative. Dig Deeper For the full picture including more risks and rewards, check out the complete Celestica analysis. Alternatively, you can check out the community page for Celestica to see how other investors believe this latest news will impact the company's narrative. 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.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for Free