Celestica (CLS) added nearly 10% on its Q2 results, which beat handily on both top and bottom line thanks to 84% Y/Y growth in CCS - prompting an 8% increase to the full-year guide…

… and a preliminary 2027 target of over 65% revenue growth - driven by big wins at OpenAI, AMD, and Google as well as new program introductions in the networking switch business.

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For 2027, as a result of exceptionally strong customer demand and new program wins, we expect our revenue growth rate to accelerate as compared to the 65% growth expected in our 2026 annual outlook.

Rob Mionis (CEO) - CLS Q2’26 call

Management expects that to translate to continued margin improvement, so EPS growth should outpace whatever we get on the top line…

… but there’s no such thing as free lunch, with the company’s $1.5B floor on 2027 CapEx sitting 50% higher than this year to support the multi-year demand cycles of its clients…

… that consensus continues to chase, making Celestica’s multiple look less aggressive as estimates catch up to reality.

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