CLS

Bond market volatility has pushed government yields in major economies to multi year highs, which keeps borrowing costs in focus for every sector. At the same time, the physical plumbing of artificial intelligence is still being built out, from power hungry data centers to high grade connectivity. This creates a targeted way for you to focus on AI’s “picks and shovels.” This article highlights three stocks from that infrastructure theme. The three stocks in this article are just a starting sample. The full screen surfaced 52 more AI infrastructure companies with equally compelling narratives that are not covered here. If you want to rapidly identify and analyze your own high conviction plays across this theme, head straight into the AI Infrastructure Stocks screener. Western Digital is a global data storage company that develops and sells hard disk drives and related solutions used in everything from PCs to hyperscale data centers. Its business is highly focused on HDDs, which generated about US$12.9b in revenue, and within that, the data center drives and platforms segment is the clearest link to AI infrastructure because it supplies the high capacity storage that keeps AI training data and models online. The company sells across the United States, China, Hong Kong, the rest of Asia, and Europe, the Middle East and Africa, and is currently valued at around US$162.4b. For investors who want exposure to AI’s physical build out rather than just software stories, Western Digital offers a direct line into the storage racks of hyperscale data centers. The company is heavily tied to high capacity HDDs for AI data stores and has been reporting strong margins and free cash flow, which gives it room to invest in next generation products such as 40TB plus drives while returning capital through buybacks and dividends. The catch is that this is still a cyclical hardware market where a few big players control supply, and any break in discipline or a shift in the AI capex cycle could quickly pressure pricing and profitability. The key issue is how long Western Digital can keep that balance of tight supply, long term AI contracts and high margins working in its favor. Western Digital’s high margin HDD cash flows may be masking a more complex story involving AI data center exposure and capital returns. Get the full picture in the 4 key rewards and 2 important warning signs (1 is major!) Celestica is a Toronto based supply chain and electronics manufacturing company that builds complex hardware for sectors ranging from aerospace and industrials to cloud and enterprise computing. Its clearest link to the AI infrastructure theme sits in the Connectivity & Cloud Solutions segment, which generates about US$12.3b in revenue and includes rack scale platforms and server systems for hyperscalers, plus the Helios rack scale AI platform developed with AMD. The Advanced Technology Solutions arm adds roughly US$3.3b from end markets like aerospace and HealthTech, and the company as a whole is valued at about CA$47.8b. Celestica gives you exposure to the physical build out of AI data centers, with its Connectivity & Cloud Solutions segment designing and assembling the high density racks, switching gear and Helios AI platforms that hyperscalers are buying today. Analysts and recent UBS commentary link this to earnings and revenue momentum, supported by improving margins and high returns on equity as larger AI programs scale through its factories. The trade off is heavy exposure to a small group of powerful cloud customers and to rapid technology shifts such as the move to 800G and 1.6T networking, which can amplify both upside and execution risk. For investors looking at hardware suppliers tied to AI infrastructure spending, Celestica is a story that may warrant closer attention. Celestica’s AI rack and Helios momentum has many investors focusing on growth; yet the real story may be how that flows through earnings resilience. Get the analyst forecasts for Celestica and see what could shift next Vertiv Holdings Co builds the hardware that keeps high power data centers running, with a particular focus on liquid and air cooled thermal management systems and high density power distribution that are used to cool and feed energy to AI GPU racks. It generates most of its roughly US$9.5b in segment revenue from the Americas at about US$7.5b, with Asia Pacific at about US$2.7b and Europe, the Middle East and Africa at about US$2.4b, and has a market value of about US$99.6b. Vertiv may be of interest if you want exposure to the physical side of AI, where demand for liquid cooling and high density power gear is directly related to how many GPU racks hyperscalers deploy. The company combines this with lifecycle services and monitoring software, which can deepen customer relationships and support margins as AI capacity expands. The catch is that the stock already trades on a rich valuation and a handful of large cloud and data center customers drive a large share of orders, so any pause in AI capital expenditure or competitive pressure in cooling and power solutions could affect sentiment quickly. Vertiv’s surge into liquid cooling and high density power has many investors focused on AI excitement, while the rich valuation raises questions. Get the analyst forecasts for Vertiv Holdings Co and see whether the current enthusiasm is hiding something bigger. Fresh ideas do not stay under the radar for long. While momentum builds and breakouts form, the clean entry points get caught quickly. Check these themes and consider acting while conditions remain favorable. Spot cash rich companies before they start flying by scanning the 50 high quality undervalued stocks, curated for quality balance sheets and earnings power while it still matters. Ride structural growth trends with the 38 robotics and automation stocks, where automation leaders are quietly building momentum while most attention is fixed on headline AI stocks. Get ahead of the next infrastructure wave with the 39 power grid technology and infrastructure stocks, focused on companies tied to grid upgrades that support AI, electrification and data center expansion. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Earnings estimates for Celestica Inc. CLS for fiscal 2026 and fiscal 2027 have moved up 11.42% to $11.32 and 30.21% to $19.01, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiments about the stock’s growth potential. Image Source: Zacks Investment Research The proliferation of AI-based applications is expanding demand for Celestica's data communications and information processing infrastructure. In the second quarter of 2026, Enterprise revenues rose 167%, driven by the accelerated ramp of a hyperscaler AI/ML compute program, while 800G switching continued to scale. The company expects mass production of 1.6T programs with two hyperscalers to begin in the third quarter of 2026, with 10 active programs expected to ramp through 2027.The company will manufacture advanced AI racks developed in collaboration with Broadcom to support OpenAI's custom accelerator roadmap. Initial deliveries are expected later in 2026, with mass production scheduled for 2027.AMD is broadening its AI infrastructure offerings with the planned Helios platform. Celestica is playing an important role as a design and manufacturing partner for the platform. Celestica’s comprehensive portfolio spanning communications, cloud, aerospace and defense, industrial and healthcare markets strengthens its business model by making it less vulnerable to downturn in any single market. Its strong focus on product diversification and high-value markets is supported by R&D, engineering and advanced manufacturing capabilities. This allows the company to maintain its competitive edge in a highly competitive electronics manufacturing services industry where it faces competition from major players such as Jabil, Inc. JBL, Sanmina Corporation SANM and Flex. Cash provided by operating activities increased to $410.9 million from $152.4 million in the year-ago quarter, supported by stronger earnings despite higher working capital requirements tied to rapid growth. Free cash flow was $147.1 million, up 22.7% year over year.As of the second quarter of 2026, Celestica’s current ratio stands at 1.23. A current ratio more than 1 implies that the company is well positioned to pay off its short-term debt obligations. Celestica shares have declined 1% in the past year against the Electronics - Manufacturing Services industry’s growth of 20.3%. The stock has underperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame. Image Source: Zacks Investment Research The company has underperformed its peers like Jabil and Sanmina. Shares of Jabil have jumped 31.2%, and shares of Sanmina have risen 24.9%. From a valuation standpoint, CLS is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 17.75 forward 12-month earnings, lower than 18.08 for the industry. Image Source: Zacks Investment Research CLS is witnessing solid momentum across several end markets backed by its robust portfolio. Growing investments in AI infrastructure are driving expansion of Celestica's AI compute business. CLS expects AI-related demand to remain a significant contributor to growth in the coming quarter. The company’s strong liquidity better positions it to navigate economic downturns and capitalize on emerging growth opportunities. Celestica’s expanding client base and growing collaboration with tech giants such as Broadcom, AMD and OpenAI bring a multi-billion-dollar revenue-generating opportunity in the next several years. Hence, with a Zacks Rank #1 (Strong Buy), Celestica appears to be a good investment option at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celestica, Inc. (CLS) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Celestica (CLS). Shares have lost about 12.4% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Celestica due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Celestica, Inc. before we dive into how investors and analysts have reacted as of late. CLS Q2 Earnings Beat Estimates on Strong CCS Demand, Outlook Raised Celestica reported second-quarter 2026 adjusted earnings of $2.54 per share, up 82.7% year over year and ahead of the Zacks Consensus Estimate of $2.29 by 10.9%. Revenues jumped 62.4% to $4.70 billion and surpassed the consensus mark of $4.35 billion by 8.1%.Robust momentum in the Connectivity & Cloud Solutions (CCS) business remained the primary growth driver. CCS revenues surged 84% year over year, reflecting sustained strength in data center infrastructure demand, while management raised its 2026 outlook and now expects revenue growth to accelerate further in 2027. GAAP net earnings climbed to $368.8 million, or $3.17 per share, from $211 million, or $1.82 per share, in the year-ago quarter. Higher revenues and improved operating leverage continued to support profitability.GAAP earnings from operations increased to $458.3 million from $272.5 million a year earlier. Operating margin improved to 9.8% from 9.4%. Adjusted operating earnings increased to $386.3 million from $214.7 million in the second quarter of 2025. Adjusted operating margin expanded to a record 8.2% from 7.4%, reflecting stronger operating leverage and favorable business mix as revenue scaled sharply.Adjusted earnings rose to $2.54 per share from $1.39 in the year-ago quarter, exceeding the Zacks Consensus Estimate of $2.29. Management attributed the better-than-expected profitability to stronger-than-anticipated operating leverage, while the adjusted effective tax rate was 20%, slightly below its prior expectation of approximately 21% due to a favorable profit mix. Connectivity & Cloud Solutions revenues increased 84% year over year to $3.81 billion. Segment margin improved to 8.7% from 8.3%, reflecting favorable operating leverage and stronger execution as demand from hyperscale data center customers remained robust.Hardware Platform Solutions revenues reached approximately $1.9 billion, increasing 58% from the prior-year period. Management attributes second-quarter 2026 revenue exceeding the high end of guidance to higher-than-anticipated customer demand and strong operational execution. Advanced Technology Solutions revenues rose 8% year over year to $890 million, marking a steadier performance than the rapidly expanding CCS segment.Despite the more modest sales growth, ATS segment margin improved to 6.3% from 5.3% a year earlier, reflecting stronger execution across its Aerospace and Defense, Industrial, HealthTech and Capital Equipment businesses. The segment continued to contribute to the company's overall margin expansion during the quarter. Cash provided by operating activities increased to $410.9 million from $152.4 million in the year-ago quarter, supported by stronger earnings despite higher working capital requirements tied to rapid growth.Capital expenditures rose, with purchases of property, plant and equipment totaling $263.8 million. As a result, free cash flow reached $147.1 million compared with $119.9 million a year earlier. Cash and cash equivalents stood at $535.7 million at quarter end, while long-term borrowings under the credit facility and finance lease obligations totaled $784 million. For the third quarter of 2026, Celestica expects revenues between $5.25 billion and $5.55 billion. Adjusted earnings are projected in the range of $2.88 to $3.08 per share, while adjusted operating margin is expected to be 8.4% at the midpoint of the revenue and adjusted earnings guidance ranges.Management also increased its 2026 outlook, citing stronger customer forecasts and improved component supply. The company now expects revenues of $20.5 billion, up from its previous outlook of $19 billion, adjusted earnings of $11.30 per share versus the prior forecast of $10.15, adjusted operating margin of 8.4% compared with 8.1% previously, and free cash flow of $600 million versus the earlier expectation of $500 million. Celestica also said it expects revenue growth in 2027 to accelerate beyond the approximately 65% growth anticipated for 2026, with adjusted earnings projected to grow faster than revenues. It turns out, fresh estimates have trended upward during the past month. Currently, Celestica has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Celestica has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celestica, Inc. (CLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

OpenAI's Jalapeño chip, built with Broadcom (AVGO), posts up to 1.9x more inference throughput than Nvidia (NVDA) Blackwell, with volume production not until 2027. Nvidia has beaten consensus estimates three straight quarters yet its stock has fallen after four of its last five earnings reports. Read More: Learn 7 secret wealth tips high net worth investors use that most investors miss (sponsor) One day before NVIDIA (NASDAQ:NVDA) reports fiscal second-quarter results after today's close, roughly 4:20 to 4:30 p.m. ET, OpenAI announced its first in-house accelerator beats Nvidia's Blackwell-generation systems on inference. The chip, codenamed Jalapeño, was co-developed with Broadcom on silicon and networking and with Celestica on systems integration, a product of the October 2025 deal to co-develop 10 gigawatts of custom AI accelerators. The timing coincides with earnings, but that alone does not signal impact on tonight's numbers. OpenAI's self-reported benchmarks show Jalapeño delivering 1.5x to 1.9x more AI work at peak throughput versus Nvidia Blackwell-generation systems, with 1.7x to 3.6x lower end-to-end latency and 2.1x to 4.1x faster ultra-low-latency interactive inference across GPT-OSS-120B, DeepSeek R1 and Kimi K2.5. Each rack packs 128 accelerators, 1.7 exaFLOPS of 4-bit compute, 27.5 TB of HBM4 and just under 2 petabytes/sec of memory bandwidth. VP of Hardware Richard Ho said the chip "achieves high throughput and low latency simultaneously, a first in the industry." Key caveats: Jalapeño handles inference only; Nvidia's training dominance remains untouched. The comparison targets Nvidia's GB200 NVL72 and GB300 NVL72 racks that launched in 2024 and 2025, not the upcoming Vera Rubin platform. Tests excluded speculative decoding, and OpenAI did not disclose system-level power, so this measures throughput, not performance per watt. Deployment trickles out later in 2026, with volume production in 2027. AMD's and Nvidia's latest racks still deliver 1.46x to 2x more compute and up to 12% more memory than OpenAI's rack, at roughly 85% of its memory bandwidth. That's a tradeoff. How do you continue to grow a seven-figure portfolio in retirement? The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) Analyst consensus clusters around revenue of $91 billion to $92 billion, roughly double year over year, with EPS around $2.09. Nvidia's prior guide was $91 billion plus or minus 2%. Wedbush's Matt Bryson expects a beat on both lines, with a $330 price target, noting Nvidia has "consistently exceeded consensus" the last three quarters "yet the stock is roughly unchanged from October of last year." Shares last settled at $213.05, down 3.04% on the week, up 14.37% year to date. Nvidia's stock has fallen after four of its last five reports despite beats, a pattern tonight will test. An Investing.com pre-earnings roundup lists hyperscalers building their own chips as one of six named risks facing Nvidia, with a roughly 4% anticipated decrease in GPU market share, framed as a three-to-five-year structural drag. The landscape is crowded: Google's TPU 8t/8i launched in April 2026, with Morgan Stanley modeling $84 billion to $108 billion in TPU-related Google Cloud revenue for 2027 to 2028; Amazon's Trainium3 launched December 2025, reportedly past a $25 billion annual run rate; Meta's MTIA 300 launched March 2026. Broadcom (NASDAQ:AVGO), the vehicle underneath much of this, told investors AI semiconductor bookings hit over $30 billion in a single quarter against $10.8 billion shipped, and guided Q3 AI revenue to $16 billion, up over 200% year on year. Reasonable people split. CNBC's Jim Cramer has dismissed the threat, saying he sees "no real competitors" to Nvidia year after year. SemiAnalysis's Dylan Patel called Jalapeño "huge news," unusual for first-generation custom silicon to beat Blackwell at all. Keep this distinct from the separate "circular financing" concern about how OpenAI pays for compute; that is a balance-sheet question about financing. Tonight's numbers were locked in well before Jalapeño's reveal. Orders reflected in the earnings report were placed months ago, and OpenAI's chip is not deployed at scale. Watch three things: any softening in data-center guidance beyond the ongoing China exclusion, hyperscaler concentration commentary, and whether Jensen Huang addresses custom silicon on the call unprompted. Nvidia's biggest customers are increasingly its competitors, and Broadcom is the pick-and-shovel supplier to that revolt. How do you continue to grow a seven-figure portfolio in retirement? The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) Contact [email protected] for any questions or corrections.

In recent days, analysts have highlighted Celestica’s profitability metrics and strong net income ratio, while UBS upgraded the company on expectations of AI-driven demand and faster revenue and earnings growth in 2027. These reports underscore how Celestica’s role in AI-related networking and data-center infrastructure is increasingly central to its long-term earnings outlook. Now we’ll examine how this upbeat AI-driven demand outlook could influence Celestica’s existing investment narrative and risk-reward balance. The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. To own Celestica, you need to believe AI-driven demand for networking and data-center gear can support its rapid CCS expansion without overstraining execution or customer concentration. The recent analyst focus on profitability and AI exposure reinforces the near term growth story but does not change the key risk that hyperscaler spending or orders from a few large customers could shift abruptly. The most relevant recent development is UBS flagging stronger AI-linked demand and faster revenue and earnings growth in 2027, which aligns with Celestica’s raised 2026 and 2027 revenue targets and expanding AI rack-scale programs. This support from external research sits alongside the company’s own guidance upgrades and Helios rack-scale AI collaboration with AMD, framing AI infrastructure demand as the central catalyst for Celestica’s current valuation. Yet, even with all this AI enthusiasm, investors should be aware that Celestica’s heavy revenue concentration among a handful of hyperscaler customers... Read the full narrative on Celestica (it's free!) Celestica's narrative projects $41.7 billion revenue and $2.7 billion earnings by 2029. This requires 38.8% yearly revenue growth and roughly a $1.6 billion earnings increase from $1.1 billion today. Uncover how Celestica's forecasts yield a CA$677.38 fair value, a 60% upside to its current price. Three Simply Wall St Community fair value estimates cluster tightly between CA$677.38 and CA$698.23, highlighting how differently individual investors can frame Celestica’s prospects. Set against this, the company’s reliance on a few hyperscaler customers for a large share of revenue raises questions about how resilient those growth expectations really are over time. Explore 3 other fair value estimates on Celestica - why the stock might be worth as much as 65% more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Celestica research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free Celestica research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Celestica's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: AI is about to change healthcare. These 7 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. The latest GPUs need a type of rare earth metal called Neodymium and there are only 30 companies in the world exploring or producing it. Find the list for free. This technology could replace computers: discover 24 stocks that are working to make quantum computing a reality. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CLS.TO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Autodesk ADSK is scheduled to release second-quarter fiscal 2027 results on Aug. 27.Autodesk projects fiscal second-quarter revenues between $2.005 billion and $2.015 billion. GAAP earnings per share are expected to be in the range of $1.84-$1.97, and non-GAAP earnings per share are anticipated between $3.10 and $3.14, excluding MaintainX.The Zacks Consensus Estimate for second-quarter fiscal 2027 revenues is pegged at $2.01 billion, indicating 13.96% year-over-year growth.The consensus mark for the to-be-reported quarter’s earnings is pegged at $3.12 per share, unchanged over the past 30 days. The estimate indicates year-over-year growth of 19.08%.ADSK beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with an average surprise of 7.07%.Let’s see how things have shaped up before this announcement. Autodesk, Inc. price-eps-surprise | Autodesk, Inc. Quote Autodesk's fiscal second-quarter 2027 results are expected to reflect the continued rollout of its sales reorganization and transaction-model transition rather than any single external shock.Management had guided for new-subscription growth to remain pressured through the quarter as channel incentives shifted toward new-business capture, even as renewal rates are expected to have stayed strong. The new transaction model's revenue tailwind is expected to have narrowed to roughly two percentage points, down from 3.5 points in the fiscal first quarter, reducing one of the temporary boosts that flattered prior comparisons.Momentum in AECO, particularly construction, and in emerging markets is likely to have continued supporting the top line, while EMEA's growth rate was expected to have normalized after a strong prior-year comparison tied to earlier transaction-model timing.Ongoing reduction in multiyear contract discounting is expected to have continued weighing on unbilled deferred revenues even as it supported longer-term price realization. The pending MaintainX transaction remained unclosed and was excluded from guidance. It is not expected to have contributed to the reported figures, though integration planning and related costs might have been a modest drag.Segment-level developments through the quarter were concentrated in operations, manufacturing and small-business access. In Operations, Autodesk's May 28 agreement to acquire MaintainX for approximately $3.6 billion advanced its Autodesk Operations Solutions unit. MaintainX is anticipated to exceed $135 million of annualized recurring revenues in 2026, suggesting a rise of 50%, once the deal closes later in the fiscal year.In Manufacturing, a June 3 strategic collaboration agreement with Amazon Web Services made Fusion for Product Design and Fusion Manage available on AWS Marketplace beginning in the second quarter, aimed at broadening cloud-based customer access.Across AECO and AutoCAD-based offerings, a June 4 update lowered the minimum Autodesk Flex purchase to 33 tokens for $99 from 100 tokens for $300, intended to widen adoption among small businesses and solo practitioners. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.ADSK has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.Amphenol APH has an Earnings ESP of +1.06% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Amphenol shares have gained 13.8% in the year-to-date period. APH has a long-term earnings growth rate of 26.77%.Celestica CLS has an Earnings ESP of +5.27% and flaunts a Zacks Rank #1 at present.Celestica shares have dropped 0.2% in the year-to-date period. CLS has a long-term earnings growth rate of 43.27%.Vertiv VRT has an Earnings ESP of +0.06% and a Zacks Rank #2 at present.Vertiv shares have climbed 57.1% in the year-to-date period. VRT has a long-term earnings growth rate of 74.61%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Autodesk, Inc. (ADSK) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SentinelOne S is set to release second-quarter fiscal 2027 results on Aug. 27, 2026.   The company expects fiscal second-quarter revenues in the range of $289-$291 million and adjusted earnings between 6 cents and 8 cents per share. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at $290.03 million, suggesting growth of 19.76% from the figure reported in the year-ago quarter.The consensus mark for earnings has remained at 7 cents per share over the past 30 days, suggesting 75% growth from the figure reported in the year-ago quarter.SentinelOne’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 47.50%. SentinelOne, Inc. price-eps-surprise | SentinelOne, Inc. Quote Let us see how things are likely to have shaped up for this announcement. SentinelOne’s second-quarter fiscal 2027 performance is expected to have benefited from sustained momentum across endpoint, artificial intelligence (AI), data and cloud security. In the fiscal first quarter, annual recurring revenues (ARR) increased 23% year over year, while net new ARR rose 55% to a record $44 million. Customers generating ARR of $100,000 or more increased 17% and ARR per customer reached a company record. Remaining performance obligations increased 30% to a record $1.5 billion. Continued new-logo additions, improving net retention, and multiproduct expansion are likely to have supported top-line growth in the second quarter of fiscal 2027.The to-be-reported quarter’s results are likely to benefit from increasing adoption of SentinelOne’s AI-powered security portfolio. Prompt Security ARR nearly doubled in the fiscal first quarter, while Purple AI continued gaining traction through its autonomous investigation capabilities. The May launch of Singularity AI Red Teaming further broadened the company’s AI security offerings by helping customers identify vulnerabilities in AI applications before deployment. Prompt Security is also serving as an entry point for new customers and creating cross-selling opportunities across endpoint, cloud and AI SIEM solutions.Another key driver for the fiscal second quarter is the accelerated adoption of SentinelOne’s non-endpoint solutions, particularly in data and cloud security. In the first quarter of fiscal 2027, non-endpoint ARR approached 50% of total ARR, driven by robust growth in AI SIEM and cloud runtime security. Customer wins, such as a major luxury brand replacing Splunk with SentinelOne’s AI SIEM and a large private company expanding its cloud security footprint, demonstrate the platform’s appeal. This diversification of revenue streams is expected to provide resilience and incremental growth in the second quarter of fiscal 2027.SentinelOne’s profitability is likely to benefit from ongoing cost and productivity initiatives in the to-be-reported quarter. The company’s workforce optimization program is expected to generate approximately $45 million in annualized savings while allowing continued reinvestment in AI security, data and cloud. SentinelOne expects second-quarter fiscal 2027 operating income of $23-$25 million, implying an operating margin of about 8% at the midpoint. However, macroeconomic and geopolitical uncertainties could have affected enterprise spending, deal timing, and sales cycles, while a growing mix of larger and more back-end-loaded transactions may have created some quarterly variability. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here. SentinelOne has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.Amphenol APH has an Earnings ESP of +1.06% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Amphenol shares have gained 13.8% in the year-to-date period. APH has a long-term earnings growth rate of 26.77%. Celestica CLS has an Earnings ESP of +5.27% and a Zacks Rank #1 at present. Celestica shares have dropped 0.2% in the year-to-date period. CLS has a long-term earnings growth rate of 43.27%. Vertiv VRT has an Earnings ESP of +0.06% and a Zacks Rank #2 at present. Vertiv shares have climbed 57.1% in the year-to-date period. VRT has a long-term earnings growth rate of 74.61%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NuScale Power Corporation SMR reported a second-quarter 2026 loss of 13 cents per share, in line with the Zacks Consensus Estimate. Revenues of $0.1 million plunged 98.8% from $8.1 million a year ago and missed the consensus mark of $1 million by 92.5%. The revenue decline reflected the completion of Fluor’s front-end engineering and design Phase 2 work for the RoPower project in late 2025. That work contributed to the prior-year quarter but had no comparable activity in the second quarter of 2026. Operationally, NuScale continued advancing commercial readiness, supported by more than 60 specialized suppliers and over 30 executed agreements. Management expects product and services revenues to increase as project activity advances and additional commercial work moves forward. NuScale Power Corporation price-consensus-eps-surprise-chart | NuScale Power Corporation Quote NuScale continued preparing for future reactor construction by expanding its supplier network. The company said the detailed designs for many of its most important reactor components are largely complete, and that it has signed agreements with more than half of its supplier base. One key partner, Doosan Enerbility, has already started producing large steel components for NuScale Power Modules, helping reduce manufacturing delays for future projects. Other suppliers are also making progress. Framatome is developing nuclear fuel for NuScale's reactors, while Paragon is completing the final design of an important reactor safety and control system. NuScale also plans to use commercially available low-enriched uranium, making fuel sourcing simpler than relying on newer fuel types that are not yet widely available. NuScale's expenses increased during the quarter as it continued investing in future growth. Research and development expenses rose by $6.6 million, mainly because the company spent $7.1 million more on improving reactor designs and preparing its technology for commercial deployment. This was partly offset by $0.6 million of lower regulatory costs. General and administrative expenses increased by $4.4 million, driven by $1.2 million of higher employee and stock-based compensation costs, and $3.9 million of higher organizational expenses. These increases were partly offset by $1 million of lower legal costs. Other expenses rose by $8 million as more engineering and project teams focused on preparing future commercial projects instead of current customer work, reflecting NuScale's continued investment in building its technology, supply chain and workforce. ENTRA1 Energy continues discussions with the Tennessee Valley Authority toward a definitive power purchase agreement using NuScale technology. Management described the negotiations as active and progressing and said the company is prepared to begin licensing, front-end engineering and OEM contracting activities once agreements are finalized. In Romania, NuScale is working with Nuclearelectrica and RoPower to satisfy conditions for advancing a six-module project at Doicesti. Management expects the next pre-engineering, procurement and construction phase to run toward a final notice to proceed, while roughly 60% of prior combined operating license application work can be reused for another U.S. project. NuScale ended June with $766.5 million in cash and cash equivalents, $305.7 million in short-term investments and $820.8 million in long-term investments. The company characterized its liquidity strategy as preparation for commercialization, working-capital requirements and investments needed to reduce deployment timelines. Investment income increased $8.5 million year over year, reflecting the stronger cash position and larger holdings of cash equivalents and investments. Management also emphasized disciplined operating spending while continuing to fund supply-chain agreements, design finalization and fuel-system development. NuScale Power currently carries a Zacks Rank #4 (Sell). Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Celestica CLS, Amphenol APH and Broadcom AVGO, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of Celestica have gained 6.4% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.61 per share, up 4.4% over the past 30 days, indicating an increase of 75.4% year over year. Amphenol shares have gone up 26.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $5.25 per share, up by 11.7% over the past 30 days, indicating an increase of 57.2% year over year. Shares of Broadcom have gained 21.5% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.74 per share, up by a penny over the past 30 days, indicating an increase of 72.1% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NuScale Power Corporation (SMR) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Plexus Corp PLXS reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $2.32 compared with the year-ago quarter’s $1.90. The figure beat the Zacks Consensus Estimate of $2.10 per share. Management expected non-GAAP EPS to be in the band of $2.02-$2.18.Revenues increased 28.1% to $1.305 billion and surpassed the consensus mark of $1.228 billion by 6.3%. Management expected revenues to be between $1.2 billion and $1.25 billion. Broad end-market demand, new program ramps and Industrial strength drove the performance. Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote In the fiscal third quarter, Plexus announced 31 manufacturing program wins, which are estimated to contribute $255 million in annualized revenues once fully ramped into production. Shares are up 2.3% in the pre-market trading session today. In the past year, shares have gained 88.6% compared with the Electronics- Manufacturing Services industry’s growth of 49%. Image Source: Zacks Investment Research Aerospace/Defense revenues climbed 27.3% year over year and 10% sequentially to $233 million, accounting for 18% of the total. Broad demand and strong operational execution supported revenue growth. Fiscal 2026 revenues are now projected to grow more than 20%, buoyed by defense demand, while fiscal fourth-quarter revenues are expected to be flat.  Healthcare/Life Sciences revenues increased 15% year over year and 2% sequentially to $483 million, contributing 37% of total revenues. Program ramps remained a growth driver. Fiscal 2026 revenues are projected to be in the high teens, while fiscal fourth-quarter revenues are expected to be flat.  Industrial revenues surged 41.9% year over year and 23% sequentially to $589 million. The sector represented 45% of total revenues, up from 41% in both the prior quarter and the year-ago period. Semiconductor capital equipment and broader industrial demand and program ramps supported the growth. Management expects Industrial revenues to rise in the high-single to low-double digits sequentially in the fiscal fourth quarter while overall fiscal 2026 revenues are projected to grow more than 20%.  Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $533.1 million, $473 million and $222 million, respectively. Revenues from the Americas increased 37.2% year over year to $428 million. Asia-Pacific revenues increased 30.3% while EMEA revenues declined 6.8%. The company’s top 10 customers accounted for 55% of net revenues in the fiscal third quarter. Gross profit on a GAAP basis was up 27.2% year over year to $131.4 million. Gross margin was 10.1%, unchanged from the year-ago quarter. Selling and administrative expenses increased 41.1% from the year-ago quarter’s actuals to $70.1 million.Adjusted operating margin expanded 30 basis points to 6.3%. As of July 4, 2026, Plexus had cash & cash equivalents worth $314.1 million compared with $303.1 million as of April 4. PLXS had long-term debt and finance lease obligations, net of the current portion of $91.6 million as of July 4, 2026, compared with $91 million as of April 4. For the quarter under review, cash flows generated from operations were $25.9 million. Plexus reported a free cash outflow of $0.7 million after incurring capital expenditures of $26.6 million. The company repurchased $20.6 million worth of shares at an average price of $258.75 per share under its repurchase program in the fiscal third quarter. Out of the $100 million authorization, $21.4 million remains available. For the fiscal fourth quarter, revenues are projected between $1.33 billion and $1.38 billion. At the midpoint, the revenue outlook implies a 4% sequential rise and 28% year-over-year growth. Non-GAAP EPS is expected to be in the band of $2.47-$2.63, while adjusted operating margin is forecasted in the 6.1-6.5% range.Management now expects fiscal 2026 revenue growth above 20% and adjusted operating margin  greater than 6%. Fiscal 2027 revenue growth is expected to exceed the 9-12% goal, alongside further margin expansion.The stronger outlook also requires more working capital investments. Management now anticipates fiscal 2026 free cash flow usage.  Earlier, Plexus projected free cash flow to be $50-$75 million for fiscal 2026. The company expects to return to meaningful free cash flow generation early in fiscal 2027. Plexus currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Jabil Inc JBL reported third-quarter fiscal 2026 results wherein core earnings of $3.16 per share increased 23.9% year over year and topped the Zacks Consensus Estimate of $3.12 by 1.28%. Net revenues rose 11.8% to $8.75 billion and exceeded the consensus mark of $8.63 billion by 1.39%. Jabil’s Intelligent Infrastructure remained the key growth engine, with segment revenues climbing 21% year over year. Over the past year, shares of JBL have gained 26.8%.Sanmina Corporation SANM reported third-quarter fiscal 2026 earnings, wherein non-GAAP EPS stood at $3.31, beating the Zacks Consensus Estimate of $2.78. Revenues of $3.46 billion exceeded the Zacks Consensus Estimate of $3.43 billion. Management added that strong execution across both core Sanmina operations and the ZT Systems business supported expansion. Over the past year, shares of SANM have gained 41.4%.Celestica’s CLS second-quarter 2026 adjusted earnings were $2.54 per share, which surged 82.7% year over year, and topped the Zacks Consensus Estimate by 10.9%. Revenues increased 62.4% to $4.7 billion and topped the consensus mark by 8.1%. Momentum in Connectivity & Cloud Solutions remained the key catalyst for Celestica. Over the past year, shares of CLS have gained 61.6%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plexus Corp. (PLXS) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Celestica Inc. CLS has rallied sharply as investors reward its accelerating exposure to artificial intelligence infrastructure. That raises a natural question of whether the stock still offers attractive upside after another quarter of better-than-expected results.Answering that question requires balancing the company's operational momentum against its richer valuation, long-term growth prospects and the risks that accompany a rapidly expanding business. Celestica again exceeded expectations in the second quarter of 2026. Adjusted earnings of $2.54 per share beat the consensus mark by 10.9% while revenues climbed 62.4% year over year to $4.70 billion, topping estimates by 8.1%. Record adjusted operating margin of 8.2% reflected stronger operating leverage and favorable business mix.Management also raised full-year guidance. It now expects 2026 revenues of $20.5 billion, adjusted earnings of $11.30 per share, adjusted operating margin of 8.4% and free cash flow of $600 million, reinforcing confidence in continued execution. Celestica's strong share-price performance has pushed its valuation above its historical norms and ahead of many industry and broader market benchmarks. Investors are now paying a premium for the company's AI-driven growth prospects and improving earnings profile.Even so, the higher valuation may be justified if the company continues delivering rapid earnings growth, expanding margins and executing on its AI infrastructure opportunities. Future upside will likely depend more on sustained earnings growth than on additional multiple expansion. Image Source: Zacks Investment Research AI infrastructure investment continues to underpin demand for enterprise networking, cloud infrastructure, storage systems and high-bandwidth switching products. Expansion of 400G, 800G and emerging 1.6T networking platforms should support future growth.Celestica is also broadening its technology portfolio through product innovation, manufacturing investments and engineering capabilities. The rapidly growing Connectivity & Cloud Solutions business remains the primary earnings engine as hyperscale customers continue expanding AI infrastructure. Competition remains intense across the electronics manufacturing services industry. Celestica competes with large global players, including Jabil JBL, Flex FLEX and Sanmina SANM, making continued investment in technology, manufacturing capabilities and customer relationships essential to maintaining market share.International operations also expose the company to foreign exchange movements, geopolitical uncertainty and supply-chain disruptions. Macroeconomic weakness could weigh on portions of the Advanced Technology Solutions business despite stronger AI-related demand. The investment case continues to benefit from favorable earnings estimate revisions alongside healthy operating momentum. Even after the stock's appreciation, the company appears positioned to participate in long-term AI infrastructure spending.Celestica currently sports a Zacks Rank #1 (Strong Buy), a Growth Score of B and a VGM Score of B. Those indicators point to favorable growth characteristics and supportive estimate revisions. Its Value Score of D suggests much of the recent operational strength is already reflected in the share price, making continued execution important for sustaining investor enthusiasm. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celestica, Inc. (CLS) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Celestica Inc. CLS used its second-quarter 2026 earnings call to sharpen the focus on accelerating AI infrastructure demand, stronger multi-year customer visibility and a growth rate in 2027 that management expects to exceed this year’s already elevated pace. The key message was not simply that quarterly results topped expectations. Management emphasized that expanding networking, AI compute and custom rack programs are giving the company greater confidence in its capacity plans, margin trajectory and longer-term revenue outlook. CLS Raises the Bar for 2026 Chief executive officer Robert Mionis said that stronger first-half execution, improving component supply and firmer second-half customer forecasts supported another increase to Celestica’s annual outlook. The company reported adjusted EPS of $2.54, beating the Zacks Consensus Estimate of $2.29. Revenues were $4.7 billion, surpassing the consensus estimate of $4.35 billion. The company expects 2026 revenues of $20.5 billion, up from the prior mentioned $19 billion. Adjusted earnings are projected at $11.30 per share compared with the previous $10.15 target, whereas the adjusted operating margin is expected to reach 8.4%. The free cash flow guidance also increased to $600 million from $500 million. Management maintained its planned capital expenditure of $1 billion, reflecting continued investment in production capacity for awarded and ramping programs. Celestica, Inc. price-consensus-eps-surprise-chart | Celestica, Inc. Quote Celestica Sees Growth Accelerating in 2027 Mionis said that Celestica expects its 2027 revenue growth rate to exceed the 65% increase anticipated for 2026. Adjusted earnings growth is also expected to outpace revenue growth as the operating margin expands. Management tied that outlook to higher demand for 800G networking, the rollout of 1.6-terabit switching, and multiple AI and machine-learning compute programs. Celestica has 10 active 1.6T programs, with volume expected to build in the second half of 2026 and accelerate in 2027. Chief financial officer Mandeep Chawla added that customer capacity discussions now extend into 2028 and, in some cases, 2029. Long component lead times have prompted customers to solidify forecasts and place material orders earlier, increasing management’s visibility. CLS Expands AI Systems Opportunity Celestica disclosed that it would begin initial deliveries of custom racks for OpenAI later in 2026. The company will work with OpenAI and Broadcom on a multi-generational accelerator roadmap, with mass production of the Jalapeño platform planned for 2027. Mionis characterized the OpenAI opportunity as multi-billion-dollar in scope across 2027 and 2028. He also described the AMD Helios scale-up platform as a multi-billion-dollar pipeline for 2027. Celestica serves as the design and manufacturing partner for the Helios scale-up networking switch. Samples are scheduled for late 2026, with the production ramp beginning in the first half of 2027. Celestica Leans on HPS & Operating Leverage Chawla said that Hardware Platform Solutions, or HPS, should remain an important margin driver because Celestica contributes design expertise and proprietary know-how to many switching programs. HPS revenues rose 58% to $1.9 billion in the quarter and represented 41% of the total revenues. Management expects networking growth and a higher mix of HPS content to support further operating margin expansion. Celestica also expects productivity gains from high factory utilization and disciplined operating-expense growth. Chawla said that the gross margin should remain near the mid-11% range through 2026, while operating profit expansion remains the clearer priority for 2027. CLS Addresses Supply & Execution Risks Analysts repeatedly pressed management on whether component shortages could constrain the raised outlook. Mionis acknowledged that AI infrastructure demand continues to exceed global component supply but said that Celestica has incorporated those limits into its forecasts. Customers have placed non-cancelable, non-refundable orders for long-lead silicon, while Celestica has secured supply agreements for constrained items such as memory and printed wiring boards. Management also said that it has sufficient production capacity for its projected 2026 and 2027 demand. The more significant limitation remains material availability, meaning additional supply could create revenue opportunity. Celestica’s Priorities Remain Expansion & Execution Management’s tone was confident but centered on execution rather than unrestricted demand. Capacity expansion, component procurement and the transition from product design to scaled manufacturing remain central priorities. Celestica is investing across Thailand, Japan and the United States, including additional capacity in Texas. Capital allocation will remain focused on business reinvestment, with share repurchases treated opportunistically. Zacks Signals Remain Favorable but Mixed by Style CLS currently sports a Zacks Rank #1 (Strong Buy), indicating a favorable near-term earnings-estimate revision profile. Its Growth Score and VGM Score of B also place the shares in the stronger two grades for those measures. You can see the complete list of today’s Zacks #1 Rank stocks here. The Value Score and Momentum Score of C are more neutral. Zacks research emphasizes that Style Scores work best alongside a top Zacks Rank, particularly when the relevant individual score or VGM Score is A or B. The Zacks Rank can change as analysts revise estimates following the newly reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celestica, Inc. (CLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research