Celestica surges on AI-driven earnings beat, raised outlook
Toronto-based electronics manufacturer beats EPS estimates by 27% as data center demand accelerates
Celestica Inc. shares jumped 3.6% on Wednesday after the electronics manufacturer delivered quarterly earnings that topped analyst expectations by a wide margin, citing accelerating demand for artificial intelligence-related data center technologies.
The Toronto-based company reported fourth-quarter adjusted earnings per share of $1.89, beating the consensus estimate of $1.49 by 27%, according to the company's earnings announcement. Revenue surged 44% year-over-year to $3.65 billion, extending a period of rapid growth for the once-overlooked electronics manufacturer.
Celestica's chief executive highlighted strengthening demand for AI infrastructure as a key driver, with the company positioning itself as a critical partner in the buildout of data centers needed to power generative AI applications. The commentary reflects a broader trend reshaping the technology hardware sector, where companies exposed to AI infrastructure have seen valuations expand dramatically over the past year.
Perhaps more significant than the quarterly beat was Celestica's decision to raise its 2026 outlook. The company now projects revenue of $17.0 billion for the full year, up from previous guidance of $16.0 billion, while lifting its earnings per share forecast to $8.75 from $8.20. The increased guidance suggests management sees sustained momentum rather than a temporary surge.
The stock's advance adds to what has been an extraordinary run for Celestica shares. The company has seen its market capitalization swell to approximately $35.5 billion, with the stock trading near its 52-week high of $363.40—more than six times its yearly low of $58.05. The rally has transformed Celestica from a mid-cap manufacturer into one of the market's prominent AI beneficiaries.
Analysts remain broadly bullish on the stock despite its sharp appreciation. Of the 17 analysts covering Celestica, 15 rate it a buy, with none recommending a sell, according to market data. The consensus price target of $376.64 represents additional upside of roughly 9% from current levels.
Celestica's transformation underscores how the AI boom is creating opportunities beyond the obvious chipmakers and software companies. As hyperscale cloud providers race to expand their data center capacity to handle AI workloads, demand has surged for the sophisticated hardware platforms and supply chain services that Celestica specializes in providing.
The company's exposure to the communications, aerospace, defense, and enterprise markets provides diversification beyond pure AI plays, though its recent growth has been concentrated in data center technologies. Revenue growth has accelerated sharply, with quarterly sales increasing 27.8% year-over-year, while earnings have more than doubled.
Investors will be watching whether Celestica can maintain its growth trajectory as the AI infrastructure buildout continues. The raised 2026 guidance suggests confidence that current demand trends have staying power, though the company's elevated valuation—trading at roughly 37 times forward earnings—means expectations remain high.
For now, Celestica's earnings beat and outlook raise have reinforced its position among the AI trade's most successful secondary beneficiaries, proving that the technology revolution is creating opportunities across the broader hardware ecosystem.