1 TSX Winner Poised to Keep on Winning

Big wins in securing long-term contracts with data centre giants and an expanding customer base are helping Celestica outperform expectations most quarters.

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Key Points

  • Celestica (TSX:CLS) has surged nearly 400% in a year, driven by strong performance in AI infrastructure, high-performance computing, and strategic contract wins.
  • The company recently raised its 2025 guidance and gave solid 2026 forecasts with significant revenue and earnings growth projected.
  • With expansion in aerospace, industrial, and health-tech markets, Celestica stock could continue to soar in the long term.

It’s not very often that you see a TSX stock deliver nearly 400% gains in a year and still look like it has a long way to run. But that’s exactly what Celestica (TSX:CLS) has pulled off. This top Canadian stock hasn’t just drawn the attention of growth investors during the ongoing artificial intelligence (AI) boom but has gone on to command it. In addition to riding the AI wave, it is also at the forefront of high-performance computing and advanced manufacturing solutions for various sectors like aerospace, healthcare, and communications. Big wins in securing long-term contracts with data centre giants and an expanding customer base are helping Celestica outperform expectations almost every quarter.

These are some of the key reasons why I believe this is not a short-lived rally but the result of careful strategy and sharp execution. Let’s take a closer look at why Celestica stock could be ready to keep up its winning streak and why this TSX winner could be a smart bet for long-term investors even after such eye-popping gains.

A top TSX winner to buy now

Celestica stock is currently trading at $472.09 per share with a market cap of $54.3 billion. The stock has climbed over 384% in the last year, and more than 3,000% over the past three years, making it one of the strongest TSX performers in recent memory.

This explosive run in CLS stock is mainly backed by its strong business momentum, especially in its connectivity and cloud solutions (CCS) segment, which posted 43% YoY (year-over-year) growth in the third quarter of 2025. Celestica’s AI-focused hardware platform solutions within this segment also grew by 79% YoY during the quarter, reflecting surging demand from its hyperscale data centre clients.

Delivering growth quarter after quarter

Another key driver that has helped propel Celestica stock lately is that it’s outpacing its own projections quarter after quarter. In the third quarter, the company delivered a 28% YoY jump in its total revenue to US$3.2 billion, which beat the high end of its guidance. Its adjusted earnings surged 52% YoY to US$1.58 per share, also above expectations.

Encouraged by these solid results, Celestica just raised its full-year 2025 guidance. The company now expects US$12.2 billion in revenue for the full year and US$5.90 per share in adjusted earnings.

On the brighter side, the electronics manufacturer also rolled out a bullish 2026 forecast with US$16 billion in revenue and US$8.20 per share in adjusted earnings – signalling huge confidence that its growth runway is far from over.

What could help this TSX stock keep winning

In addition to AI infrastructure, Celestica has been winning in multiple areas such as aerospace, industrial, and health-tech markets through its advanced technology solutions (ATS) segment. And while its ATS revenue dipped slightly last quarter, it was still able to improve margins, pointing to better cost control.

Meanwhile, Celestica is investing heavily in capacity, new technologies, and customer partnerships. For example, it’s building stronger relationships with the world’s top cloud and computing companies, which are themselves increasing their spending in AI and high-performance data infrastructure. That creates a durable pipeline for Celestica in the years ahead.

While many high-growth stocks burn bright and fade fast, Celestica’s combination of solid earnings, a growing presence in fast-expanding markets, and a solid roadmap suggests it’s built for the long term. As a result, even after a stunning run-up, it looks like this TSX winner has a lot more left in the tank.

Fool contributor Jitendra Parashar has positions in Celestica. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy.

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