Celestica Inc. (NYSE: CLS), a Toronto-headquartered provider specializing in data center infrastructure, experienced a notable decline in its share price in after-hours trading on the day following its Q4 2025 earnings release. Despite this, the company posted strong financial results that surpassed prior guidance, leading to a positive outlook for 2026.
In the fourth quarter ending 2025, Celestica’s revenue surged by 44% compared to the prior year, climbing from $2.55 billion to $3.65 billion. This figure exceeded the upper limit of the company’s earlier revenue guidance range, which had been set between $3.325 billion and $3.575 billion. Adjusted earnings per share (EPS) for the quarter were reported at $1.89, surpassing the guidance range of $1.65 to $1.81.
On a Generally Accepted Accounting Principles (GAAP) basis, earnings per share during the quarter amounted to $2.31, a significant improvement from $1.29 recorded in the corresponding quarter of 2024. Alongside revenue and profit gains, Celestica expanded its adjusted operating margin to 7.7% from 6.8% in the year-ago period, reflecting enhanced operational efficiency.
Following these strong results, CEO Rob Mionis announced an upward revision in the company’s outlook for full-year 2026. Revenue guidance was increased from $16 billion to $17 billion, while adjusted EPS projections rose from $8.20 to $8.75. Mionis attributed these upgrades to growing demand for artificial intelligence (AI)-related technologies within the data center segment.
The CEO elaborated on the company’s strategic plans to support this growth trajectory, noting that Celestica expects the increased revenue momentum to continue into 2027. To accommodate future demand, the company will augment its capital expenditure plans, raising investments to $1 billion for the year. Importantly, the organization anticipates financing this expansion organically through operating cash flow without reliance on external funding sources.
Part of this capital investment strategy includes expanding manufacturing capabilities in the United States, with a focus on producing sophisticated data center hardware. Among key products slated for production in expanded facilities are the Google Tensor Processing Unit (TPU) systems developed by Alphabet Inc. (NASDAQ: GOOG, GOOGL). Construction of the new manufacturing site is expected to reach completion by 2027, positioning Celestica to better serve AI infrastructure needs in North America.
From a market perspective, Celestica’s stock demonstrated increased volatility in after-hours trading, with shares declining 5.28% to $327.01 following the earnings announcement. Prior to this, the stock closed at $345.23, representing a 3.62% gain for the day according to Benzinga Pro data. Over the previous twelve months, the company’s shares have appreciated by roughly 265.4%, highlighting strong investor confidence and momentum in the stock.
Technical indicators provide additional insight into the stock’s performance. The Relative Strength Index (RSI) is reported at 60.62, signaling a moderately strong position but with room before reaching overbought levels. Market capitalization stands at approximately $39.67 billion. The stock’s current price places it close to its 52-week high of $363.40, well above the 52-week low of $58.05, indicating a bullish trend over the past year.
Analytical rankings further emphasize the quality and momentum behind the stock. Benzinga’s Edge Stock Rankings assign Celestica a Quality score of 98.52, reflecting strong fundamentals and operational execution. Momentum and growth scores are also notable, with the former at 97.29 and the latter at 77.41, although value scores remain comparatively low.
Despite the after-hours price drop, market observers may view Celestica’s performance and strategic initiatives as positioning the company favorably to capitalize on AI-driven data center expansion. Continued strong demand for data center infrastructure and related hardware solutions underpins the company’s decision to expand capacity, particularly with critical projects like supporting Google’s TPU systems.