Celestica (NYSE:CLS) Sees Strong Trading Volume Following Strong Earnings

Celestica, Inc. (NYSE:CLS) (TSE:CLS) shares saw unusually-strong trading volume on Tuesday after the company announced better than expected quarterly earnings. Approximately 1,694,073 shares were traded during mid-day trading, a decline of 28% from the previous session’s volume of 2,340,783 shares.The stock last traded at $324.5920 and had previously closed at $318.24.

The technology company reported $2.54 earnings per share for the quarter, topping the consensus estimate of $2.29 by $0.25. Celestica had a net margin of 6.95% and a return on equity of 36.91%. The firm had revenue of $4.68 billion during the quarter, compared to analysts’ expectations of $4.30 billion. During the same quarter in the prior year, the company earned $1.39 EPS. The company’s revenue was up 62.4% compared to the same quarter last year. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS.

Key Stories Impacting Celestica

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Q2 results exceeded expectations. Celestica reported adjusted EPS of $2.54 versus the $2.29 consensus estimate and revenue of approximately $4.68 billion-$4.70 billion versus expectations of about $4.30 billion. Revenue increased 62.4% year over year, while EPS rose from $1.39 in the prior-year quarter. Celestica Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised 2026 guidance. Full-year revenue guidance was set at $20.5 billion and EPS guidance at $11.30, above analyst consensus of approximately $19.2 billion and $10.13, respectively. Third-quarter guidance of $5.3 billion-$5.6 billion in revenue and $2.88-$3.08 in EPS also exceeds consensus estimates. Celestica Q2 Earnings and Revenue Beat Estimates; Raises 2026 Outlook
• Positive Sentiment: AI-related demand is strengthening the growth outlook. The Connectivity & Cloud Solutions segment grew 84% year over year. Celestica expects mass production for hyperscale customers in 2026 and indicated that revenue growth could accelerate beyond 65% in 2027, improving forward visibility.
• Positive Sentiment: Trading activity reflected bullish interest. Investors purchased 13,556 CLS call options, about 16% above average daily call volume, while pre-market reports indicated the shares were trading roughly 5% higher following the earnings release. Why Celestica Shares Are Trading Higher
• Negative Sentiment: Valuation remains a consideration. Despite the earnings momentum, commentary cautioned that the stock may warrant monitoring rather than immediate purchase, suggesting investors could remain sensitive to its elevated valuation, execution requirements, and dependence on continued AI infrastructure spending. Celestica Q2: 2 Reasons It’s Worth Watching, But Not Buying Yet

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on CLS. TD lifted their price target on Celestica from $330.00 to $350.00 and gave the company a “hold” rating in a report on Monday, April 20th. Weiss Ratings cut Celestica from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, July 16th. Rothschild & Co Redburn began coverage on Celestica in a research report on Friday, May 1st. They set a “buy” rating and a $460.00 price objective on the stock. BMO Capital Markets lifted their target price on Celestica from $370.00 to $450.00 and gave the company an “outperform” rating in a research note on Friday, April 24th. Finally, Susquehanna increased their price target on shares of Celestica from $460.00 to $510.00 and gave the company a “positive” rating in a research report on Wednesday, April 29th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Celestica has a consensus rating of “Buy” and an average target price of $427.42.

Insider Activity

In related news, Director Michael Max Wilson sold 4,168 shares of the company’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $333.31, for a total transaction of $1,389,236.08. Following the transaction, the director directly owned 24,718 shares of the company’s stock, valued at $8,238,756.58. This represents a 14.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Robert Mionis sold 18,176 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $385.17, for a total value of $7,000,849.92. Following the completion of the sale, the chief executive officer owned 60,384 shares of the company’s stock, valued at approximately $23,258,105.28. This trade represents a 23.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 161,168 shares of company stock worth $63,190,485. Insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Celestica

Large investors have recently modified their holdings of the business. Spire Wealth Management lifted its stake in shares of Celestica by 354.3% during the fourth quarter. Spire Wealth Management now owns 5,979 shares of the technology company’s stock worth $1,767,000 after buying an additional 4,663 shares during the period. Renaissance Technologies LLC acquired a new position in shares of Celestica in the 1st quarter valued at $68,952,000. CIBC Asset Management Inc increased its position in shares of Celestica by 7.7% in the 4th quarter. CIBC Asset Management Inc now owns 436,922 shares of the technology company’s stock valued at $129,499,000 after acquiring an additional 31,086 shares during the period. Norges Bank purchased a new position in Celestica in the 4th quarter worth $456,511,000. Finally, Marietta Investment Partners LLC acquired a new stake in Celestica during the 4th quarter worth about $1,273,000. Hedge funds and other institutional investors own 67.38% of the company’s stock.

Celestica Trading Up 1.5%

The company has a current ratio of 1.26, a quick ratio of 0.73 and a debt-to-equity ratio of 0.36. The stock has a 50-day simple moving average of $361.64 and a 200 day simple moving average of $332.61. The company has a market cap of $37.15 billion, a price-to-earnings ratio of 39.08, a PEG ratio of 0.71 and a beta of 2.05.

About Celestica

Celestica Inc is a multinational electronics manufacturing services (EMS) company that provides design, engineering, manufacturing and supply chain solutions to original equipment manufacturers across a range of industries. Headquartered in Toronto, Ontario, Canada, Celestica works with customers to develop and produce complex electronic and electro-mechanical products, integrating activities from product design and prototyping through high-volume assembly, testing and final system integration.

The company’s service offering typically includes product engineering and design support, printed circuit board assembly, box-build and systems assembly, automated test and inspection, aftermarket repair and refurbishment, and end-to-end supply chain and logistics management.