Celestica (TSX:CLS) is a Canadian growth stock that has mesmerized investors with market-beating performances over the past three years, with more than a 2,100% gain. The tech stock took a breather late last year, but CLS could take off on another rally in 2026 following management’s recent outlook updates.
Some growth stocks are built on hype and hollow promises. Others are built on real revenue contracts, cash flow-positive operations, and business operations positioned exactly at the intersection of the world’s most powerful growth megatrends. Celestica stock is in the latter camp, and here’s why it may do well for growth-seeking investors this year.
Celestica: A hardware partner for a growing AI megatrend
Toronto-based Celestica is a technology solutions company that designs, manufactures, and ships the hardware that powers the modern digital economy. Data centre servers, artificial intelligence (AI) networking switches, communications equipment, and cloud infrastructure are some of its revenue lines. Its clients, which include the world’s largest hyperscalers, have committed hundreds of billions into building AI infrastructure over the next three years, and the company recently upgraded its outlook for 2026.
While the market is still debating which AI software companies will win the revenue and earnings growth race, Celestica is quietly shovelling the picks and shovels to all of them, making boatloads of cash from AI-related deals.
CLS stock’s growth track record
Performance is where Celestica stock gets genuinely exciting. A $2,000 investment in CLS stock three years ago would be worth roughly $46,200 today.
CLS data by YCharts
But here’s what matters even more than the past: Celestica’s revenue growth is accelerating.
In 2025, Celestica reported revenue of US$12.4 billion, up 28.5% year over year and beating its own guidance. Net earnings surged by 94.5%, powered by expanding operating leverage and a surge in its high-margin Communications segment — the division that serves hyperscale data centre customers directly.
Celestica’s operating margins are improving. Revenue is beating estimates. And the company is raising guidance.
In a recent earnings update in January, Celestica raised its revenue guidance for 2026 from $16 billion to $17 billion and increased its adjusted earnings per share (EPS) guidance from $8.20 to $8.75. This guidance implies a 37% annual revenue growth rate and a 44.6% sequential increase in EPS for 2026! Revenue and earnings growth is accelerating, and management’s outlook is supported by “expected stronger customer demand….”
The global AI spending spree is ongoing, and Celestica is at the epicentre through its connectivity and cloud solutions (CCS) segment, which has become a sustainable growth engine for the business. The company has been deepening relationships with its customers, winning long-term contracts and expanding its product design capabilities. This could mean stickier revenues, better operating margins and widening moats with every new data centre built.
Why a $2,000 investment in Celestica stock makes sense right now
Despite a recent run, Celestica stock still trades a forward P/E of 31.6, and a forward price-earnings-to-growth (PEG) ratio of one, which implies shares fetch a reasonable price given the business’s earnings growth potential.
Now, some investors might look at a CLS stock that has already gained more than 2,100% over three years and wonder if they missed the boat. The concern is fair, but Celestica’s run still has some momentum. The AI data centre spending spree may extend for another five years, Celestica’s revenue growth rate is accelerating still, and the company still has scale advantages to capitalize on.
Moreover, management has a demonstrated track record of delivering on and exceeding its financial targets.
With $2,000 to invest in February 2026, you’d be buying into a company that trades at a reasonable multiple relative to its earnings growth trajectory. That’s a rare valuation offer in the AI infrastructure space, where many pure-play software names trade at nose-bleed valuations.
