Celestica’s Q3 revenue and adjusted EPS exceeded Wall Street’s estimates, driven by the AI data center boom. Management raised full-year 2025 guidance and issued 2026 guidance above analysts’ expectations. Shares surged 10% in after-hours trading. Revenue increased by 28% year over year, with GAAP net income up by 199%.
The company’s strong performance was attributed to its customers, including top hyperscalers like Amazon and Microsoft. Celestica’s hardware platform solutions revenue saw a 79% increase, primarily from servers and storage solutions for the enterprise market. The ATS segment includes aerospace, defense, and other businesses.
CEO Rob Mionis announced positive 2026 outlook, expecting revenue of $16.0 billion and non-GAAP adjusted EPS of $8.20. Management raised full-year 2025 guidance, with revenue expected to reach $12.2 billion and adjusted EPS of $5.90. For 2026, revenue is forecasted to be $16.0 billion and adjusted EPS of $8.20.
Investors are advised to consider the Motley Fool Stock Advisor’s 10 best stocks to buy now, as Celestica was not included. The Stock Advisor’s total average return is 1,047%, outperforming the S&P 500. Don’t miss out on potential investment opportunities. 1. The stock market hit record highs today, with the S&P 500 and Nasdaq reaching all-time highs. The Dow Jones Industrial Average also saw gains, fueled by positive economic data and strong corporate earnings.
2. In other news, a new study found that over 70% of Americans have experienced financial hardship due to the COVID-19 pandemic. The study revealed that many are struggling to pay bills, afford groceries, and cover basic expenses.
3. On the international front, tensions are rising between Russia and Ukraine as Russian troops continue to build up along the border. The United States and European Union have expressed concerns over the situation, with fears of a potential invasion by Russia.
4. In technology news, Apple announced record-breaking earnings for the first quarter of 2022, with revenue topping $123.9 billion. The company credited strong iPhone sales and growth in its services division for the impressive performance.
5. Lastly, climate change continues to be a pressing issue, with a new report warning of the dire consequences of inaction. The report highlights the need for immediate action to reduce greenhouse gas emissions and limit global warming to avoid catastrophic impacts on the planet.
Read more at Nasdaq: AI Stock Celestica Surged 10% on Q3 Earnings and 2026 Guidance That Breezed By Wall Street’s Estimates