Celestica's Revenue Soars 83% as AI Spending Accelerates

Celestica's quarterly revenue surged 83% as demand for AI infrastructure accelerated. With the company forecasting $40 billion in revenue for 2027, investors are watching whether its extraordinary growth can continue.

Artificial intelligence is creating some extraordinary winners, and Celestica's latest earnings suggest the hardware behind the technology could be one of its biggest opportunities.

The electronics manufacturer reported third-quarter revenue of $5.83 billion, an impressive 83% increase from $3.19 billion a year earlier.

Adjusted earnings reached $3.30 per share, more than double the previous year's $1.58 and above the company's guidance.

The results demonstrate how rapidly demand for AI infrastructure is translating into revenue for companies supplying the equipment needed to power increasingly sophisticated computing systems.

Celestica manufactures advanced hardware used in data centres, networking systems and other high-performance technology infrastructure.

As major technology companies continue investing billions into AI development, suppliers like Celestica are benefiting from the enormous expansion in computing capacity.

But the company's outlook may be even more striking than its quarterly performance.

Celestica raised its 2026 revenue forecast to approximately $21 billion and projected revenue of $40 billion for 2027.

That would represent roughly 90% annual growth, an extraordinary target for an established electronics manufacturer.

Management also expects its adjusted operating margin to reach 9% in 2027, suggesting that the company anticipates stronger profitability alongside its expanding business.

However, such rapid growth creates substantial expectations.

Celestica must continue increasing production, managing costs and securing demand from major customers to deliver on its ambitious forecasts.

Investor Take

Celestica's results provide clear evidence that AI infrastructure spending is generating significant revenue beyond the largest chipmakers.

The company's growth outlook is impressive, but investors should pay close attention to profit margins, customer concentration and whether demand can support such aggressive expansion.