• Celestica Inc. (NYSE:CLS) is projected to report earnings per share of $1.73 and revenue of approximately $3.49 billion.
• The company's stock price dropped by $18.83 per share, or 6.08%, following a report suggesting Google might shift assembly work away from Celestica.
• Celestica's high valuation is reflected in its price-to-earnings (P/E) ratio of approximately 54.97 and a price-to-sales ratio of about 3.41.

Celestica Inc. (NYSE:CLS) is a prominent player in the electronics manufacturing services industry. The company is known for providing design, manufacturing, and supply chain solutions to a wide range of industries, including communications, enterprise, and cloud markets. As Celestica prepares to release its quarterly earnings on January 28, 2026, analysts are projecting an earnings per share of $1.73 and revenue of approximately $3.49 billion.

Despite these optimistic projections, Celestica faces challenges. Pomerantz LLP is investigating potential securities fraud involving the company, following a report by Digitimes on January 22, 2026. The report suggests that Google might shift assembly work for its tensor processing units to other suppliers, potentially reducing Celestica's role in assembling Google's AI servers. This news led to a significant drop in Celestica's stock price by $18.83 per share, or 6.08%, closing at $290.92 on the same day.

Celestica's stock is currently trading at a high valuation, with a price-to-earnings (P/E) ratio of approximately 54.97. This indicates that investors are willing to pay a premium for each dollar of earnings, reflecting high expectations for the company's future performance. The company's price-to-sales ratio is about 3.41, and its enterprise value to sales ratio is around 3.46, both suggesting a strong market valuation relative to its sales.

The company's financial health is further highlighted by its debt-to-equity ratio of 0.45, indicating a moderate level of debt compared to equity. Additionally, Celestica's current ratio of approximately 1.47 suggests that it has a solid ability to cover its short-term liabilities with its short-term assets. Despite the recent dip in stock price, Celestica has been upgraded to a "Buy" rating, driven by strong demand for AI infrastructure and anticipated growth in hyperscale data centers.

As highlighted by Schaeffers Research, Celestica's upcoming earnings report is one to watch, as it may not be widely noticed but holds significant implications. The article emphasizes the importance of monitoring the entire earnings season, as implied earnings moves reflect market expectations based on options trading. With infrastructure remaining a significant theme in the current market landscape, Celestica's performance in this area will be closely scrutinized.