Photo: Carl Lender from Sunrise, USA, Wikimedia Commons, CC BY 2.0. Image resized.
Celestica said Monday it expects its revenue to nearly double again in 2027 to $40 billion, as demand from the companies building artificial-intelligence data centers keeps growing faster than the Toronto-based manufacturer had planned.
The company, which designs and builds servers, networking gear and other hardware for large cloud providers, reported third-quarter revenue of $5.83 billion, up 83% from $3.19 billion a year earlier. Adjusted earnings were $3.30 a share, compared with $1.58 a year ago, and both figures came in above the top of the range the company had guided to. Adjusted operating margin, a measure of how much of each sales dollar becomes profit from operations before certain items, reached a record 8.5%.
Higher targets for 2026 and 2027
Celestica raised its 2026 outlook to $21.0 billion in revenue, up 69%, and adjusted earnings of $11.55 a share, up 91%. For 2027 it set an initial outlook of $40.0 billion in revenue, up 90%, with a 9.0% adjusted operating margin and adjusted earnings of $21.50 a share. For the fourth quarter it guided to revenue of $6.275 billion to $6.575 billion.
“The demand environment continues to be very robust,” said Chief Executive Rob Mionis in the company’s release, adding that customer forecasts for 2028 are “meaningfully higher” than for 2027. He said the company is positioned to serve major cloud providers and leading AI labs in what he called the AI infrastructure supercycle.
Why it matters
Celestica is one of the companies that turns chip designs from firms like Nvidia into the racks and systems that sit inside data centers, so its orders are a read on how much cloud companies still plan to spend. The company said it completed a public share offering with gross proceeds of $3.45 billion, which gives it cash to fund that growth. On a standard accounting basis, earnings from operations were 7.9% of revenue, down from 10.2% a year earlier, so the record margin figure excludes items such as stock compensation and restructuring costs. Celestica also said it will hold an investor and analyst day.
JBizNews Desk | Toronto
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