Celestica Stock Rose 6% While the TSX Fell
Celestica rose 6.26% by midday Tuesday while the S&P/TSX Composite fell 0.79%, and the distance between those two numbers is the story. The Toronto-listed manufacturer has now added close to 20% in four trading sessions without issuing a single press release.
Prices here are intraday, as of 12:00 ET on September 8, 2026, with the market still open. Every prior close is the Friday September 4 session, because Monday September 7 was Labour Day and both Canadian and US markets were shut. Price data is from Yahoo Finance.
| Ticker | Sep 4 close | Last | Change | |
|---|---|---|---|---|
| Celestica | CLS.TO | 432.45 | 459.52 | +6.26% |
| S&P/TSX Composite | ^GSPTSE | 36,513.80 | 36,224.13 | -0.79% |
| Shopify | SHOP.TO | 200.76 | 185.49 | -7.61% |
| Kinaxis | KXS.TO | 177.17 | 166.05 | -6.28% |
| iShares S&P/TSX Capped IT | XIT.TO | 76.20 | 74.55 | -2.17% |
The move belongs to AMD
There is no Celestica news behind this. The company’s last announcements were its second quarter results on July 27 and an equity offering in early August. Nothing has come out since.
What did happen is that AMD gave the opening keynote at IFA in Berlin on Friday September 4 and showed the Threadripper Halo Station, a deskside machine built around a 96-core Ryzen Threadripper PRO 9995WX and up to four Instinct MI350P accelerators, aimed at running models of more than a trillion parameters locally instead of in a rented data centre. It is a prototype. AMD has not published a price, and commercial availability is expected in 2027.
AMD rose 4.69% on the day of that keynote and another 6.71% today. Chips have been bought while software has been sold: the semiconductor ETF SOXX is up 2.60% today and the software ETF IGV is down 1.74%. We covered that split across the Canadian market this morning, where every large Canadian software name fell while Celestica climbed.
Celestica sits alongside Shopify, Constellation Software, OpenText and Kinaxis on our roundup of the best AI stocks in Canada, and today it moved in the opposite direction to almost all of them. It builds the physical hardware, including servers, storage and high-speed networking switches, that AI data centres are assembled from. The names falling around it sell software subscriptions.
A Canadian company adding 6% on a product launch by a US chipmaker it neither owns nor competes with is a clean illustration of how much of a given day’s price move is a repricing of expectations rather than news from the company itself. Our guide to what moves a stock price covers the difference.
What the filings actually show
The growth is real, and it does not come from an aggregator. The figures below are from Celestica’s own filings with the SEC, pulled from the company’s XBRL data.
Source: Celestica Forms 10-K (accessions 0001030894-26-000011 and 0001030894-25-000014) and Form 20-F (accession 0001030894-22-000008).
Revenue went from $5.63 billion USD in fiscal 2021 to $12.39 billion in fiscal 2025, a compound rate of 21.8% a year. One note on the series: Celestica reported under IFRS on Form 20-F through fiscal 2023 and under US GAAP on Form 10-K from fiscal 2022, and revenue for the two overlapping years agrees to the dollar, so the series is consistent.
Earnings did not merely follow revenue, they outran it.
Source: Celestica Forms 10-K. Fiscal 2021 is excluded because diluted EPS is not comparable across the accounting change: fiscal 2022 is $1.18 under IFRS and $1.46 under US GAAP.
Net income went from $180.1 million USD in fiscal 2022 to $832.5 million in fiscal 2025, and diluted EPS from $1.46 to $7.16. Revenue grew 71% over that stretch while earnings per share nearly quintupled, which is what operating leverage looks like in a business that had spent years running on thin margins.
The second quarter, reported on July 27, continued it. Revenue was $4.70 billion USD against $2.89 billion a year earlier, a 62% increase. Adjusted EPS was $2.54 against $1.39, and adjusted operating margin reached 8.2% from 7.4%. Celestica raised its full-year 2026 outlook to $20.5 billion of revenue and $11.30 of adjusted EPS, guided the third quarter to $5.25 billion to $5.55 billion, and said it expects 2027 revenue growth to accelerate past the roughly 65% it anticipates for 2026.
Note that Celestica reports in US dollars while its TSX listing trades in Canadian dollars, so the reported figures and the C$459.52 quote are not in the same currency.
What a four-session rally leaves out
Two things complicate the picture, and neither shows up in a one-day price change.
The first is that this is a recovery, not a breakout. Celestica closed at C$652.82 on June 2, 2026. Even after gaining close to 20% in four sessions it remains 29.6% below that level, and it is up only about 11% for the calendar year to date. The stock fell a long way before it started climbing back.
The second is dilution. On August 5 Celestica priced an offering of 9,677,419 common shares at $310.00 USD, raising $2,999,999,890 in total and roughly $2.95 billion after underwriting discounts, with an option for underwriters to buy a further 1,451,612 shares. The shares closed at $371.15 on the NYSE the day before the deal priced, so the company sold stock 16.5% below the prior close. Those new shares are about 7.7% of the 126.1 million now outstanding. The prospectus says the proceeds are for working capital, capital expenditure and general corporate purposes, which is the language of a company funding growth rather than repairing a balance sheet, but existing holders paid for it in dilution and the placement price is a marker of what institutional buyers were willing to pay a month ago.
Against the company’s own guidance, the US listing at $333.67 trades at about 29.5 times the $11.30 of adjusted EPS management has guided for this year, and about 46.6 times the $7.16 of GAAP diluted EPS it actually reported for fiscal 2025.
What to watch
The risk in a contract manufacturer is not usually the growth rate, it is who the growth depends on. Celestica’s growth is concentrated in data centre programs, and the outlook it raised in July assumes those programs stay on schedule. In that business a single large program slipping matters more than a slow quarter does. Margins of 8.2% also leave less room for absorbing a lost program than a software business with far higher gross margins would have.
For a Canadian investor the practical question is what is being bought. On days like this one Celestica does not trade as a Canadian industrial. It trades as a proxy for US AI infrastructure spending, on news from Berlin, in a currency it does not report in. That is a coherent thing to own, but it is not diversification away from the same trade already expressed through the US chip names, and today’s move in opposite directions across the TSX technology sector is the clearest evidence of it.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions. Market and stock data as of 12:00 ET on September 8, 2026, with the market still open; prior closes are the September 4 session. Company financial figures are from Celestica’s own filings with the SEC.
