CLS Stock Soars Premarket After Blowout Q3 — Retail Calls It ‘Very Inexpensive’ As Celestica Touts AI ‘Supercycle’

• Q3 revenue jumped 83% to $5.83 billion, while adjusted EPS more than doubled to $3.30.
• Celestica forecasts $40 billion in 2027 revenue, above Wall Street expectations.
• The company raised its 2026 sales and earnings targets but cut its free-cash-flow forecast.

Celestica (CLS) shares surged 17% in premarket trading on Tuesday as stronger-than-expected earnings and an upbeat AI demand outlook fueled retail bets that the market is still undervaluing the data center infrastructure company’s growth prospects. 

CLS stock fell 5% on Monday to $246.65, with shares on track to post their worst month in over 6 years. 

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The rally offers a bright spot in a bruised AI trade, with CoreWeave, Nebius and IREN each down more than 35% so far in October as investors question whether future revenue can justify the cost of their infrastructure buildouts. 

Celestica’s AI ‘Supercycle’ Fuels A Beat And Raise

Celestica beat expectations as third-quarter (Q3) revenue jumped 83% to $5.83 billion and adjusted earnings per share (EPS) more than doubled to $3.30. Analysts had expected $5.47 billion in sales and EPS of $2.96.

Connectivity & Cloud Solutions powered the growth, with revenue doubling to $4.87 billion, while the company’s adjusted operating margin hit a record 8.5%. Celestica expects that momentum to accelerate. Its 2027 outlook calls for $40 billion in revenue, up 90% from this year’s updated forecast and above the $35.71 billion consensus estimate. It also targets adjusted EPS of $21.50 and a record adjusted operating margin of 9%.

“Celestica is well-positioned to continue to support leading hyperscalers and frontier AI labs through the ongoing AI infrastructure supercycle,” CEO Rob Mionis said.

The company’s confidence also stretches beyond 2027. “The demand environment continues to be very robust, supporting our 2027 revenue outlook, with customer demand forecasts meaningfully higher for 2028,” Mionis said.

Celestica raised its 2026 revenue target to $21 billion from $20.5 billion and its adjusted EPS forecast to $11.55 from $11.30. 

However, it cut its free-cash-flow outlook to $460 million from $600 million, citing working-capital investments to support next year’s expansion. Capex is expected to hit $1.5 billion to $2 billion in 2027.

CLS Retail Says Shares Still Look Inexpensive

Stocktwits sentiment for CLS was ‘extremely bullish’ amid a whopping 38,500% surge in 24-hour message volumes. 

One user said, “2027 outlook looks very strong. Stock looks very inexpensive at current levels!” Another user said, “Short-term price action on a lot of these AI stocks has generated some extremely favorable valuations.”

A separate user argued, “A 20 forward PE places us over $400 per share. would be priced for perfection but these guys deserve it.” Meanwhile, another user said, “AI Earnings haven't been the issue. Its about sustainability out further than 6 months.”

CLS stock has declined 17% year-to-date.

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