Celestica (CLS) Drops 13% After Earnings - Here's Why

We recently published 10 Stock Titans With Massive Losses. Celestica Inc. (NYSE:CLS) was one of the worst performers on Thursday.

Celestica snapped a four-day winning streak on Thursday, slashing 13.10 percent to close at $300 apiece as expectations for a strong earnings performance have already been priced in, thanks to strong demand from AI.

In an updated report, Celestica Inc. (NYSE:CLS) said that its net income for full-year 2025 soared by 94 percent to $832.5 million from $428 million in 2024, with $267.5 million registered in the fourth quarter alone, or an increase of 76 percent from the $151.7 million in the same period a year earlier.

Revenues for the full year surged by 28 percent to $12.39 billion from $9.65 billion, while revenues in the fourth quarter alone inched up by 4.4 percent to $3.65 billion from $2.54 billion.

Amid the strong results, Celestica Inc. (NYSE:CLS) raised its revenue outlook for 2026 to $17 billion, as well as adjusted earnings per share to $8.75, as demand for AI-related data center technologies continues to grow.

“We are continuing to align with our largest customers on their multi-year capacity roadmaps in support of their long-term AI infrastructure investments. We believe the revenue growth trajectory that we anticipate in 2026 will be sustained into 2027, and as a result, we are strategically increasing our planned capital investments to $1 billion this year. Importantly, we anticipate being able to fully fund this expansion organically through our operating cash flow,” said Celestica Inc. (NYSE:CLS) Rob Mionis.

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Disclosure: None. This article is originally published at Insider Monkey.