Celestica shares jump 15% after third-quarter results beat forecasts

what happened

Celestica shares rose roughly 15% in premarket trading on Tuesday after the company posted third-quarter results above analyst expectations and gave an upbeat revenue outlook for 2027. According to gurufocus.com, revenue climbed 83% year over year to $5.83 billion, compared with forecasts of $5.47 billion. Adjusted earnings per share more than doubled to $3.30, versus a consensus of $2.96.

For 2027, Celestica expects revenue of $40 billion, above Wall Street's $35.71 billion forecast, and adjusted earnings of $21.50 per share. It lifted its 2026 targets to $21 billion in revenue from $20.5 billion and $11.55 in adjusted earnings per share from $11.30. Free cash flow guidance was cut to $460 million from $600 million, as working capital is needed to fund expansion. Capital spending is expected to be between $1.5 billion and $2 billion in 2027.

why it matters

The share gain reflects demand for AI data center infrastructure, the market the company is positioned to serve. The lower free cash flow outlook shows how much working capital the expansion requires, so investors will watch how that affects cash generation. CEO Rob Mionis said customer demand forecasts for 2028 have also increased.

market impact

Celestica and AI infrastructure stocks: strong results and outlook support the shares, while higher capex and working capital weigh on free cash flow

• ▲Celestica shares pressure up — results and 2027 revenue outlook came in above market expectations
• ▲AI data center infrastructure stocks pressure up — rising customer demand for data center equipment supports the sector

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