Celestica shares jump 17% premarket after blowout third-quarter results

what happened

Celestica (CLS) shares rose about 17% in premarket trading on Tuesday after third-quarter results came in ahead of expectations. Revenue climbed 83% to $5.83 billion, compared with analyst forecasts of $5.47 billion. Adjusted earnings per share more than doubled to $3.30, versus an expected $2.96. The Connectivity & Cloud Solutions unit doubled its revenue to $4.87 billion, and the adjusted operating margin reached a record 8.5%, according to Stocktwits.

The company raised its 2026 revenue target to $21 billion from $20.5 billion and projects $40 billion in revenue for 2027, up 90% from its updated current-year forecast and above the $35.71 billion consensus. It targets adjusted EPS of $21.50 in 2027. Free-cash-flow guidance was cut to $460 million from $600 million due to working-capital investment, and capital spending is expected at $1.5 to $2 billion in 2027. Shares had fallen 5% on Monday to $246.65.

why it matters

The results revive interest in AI infrastructure stocks, which have been under pressure this month. CoreWeave, Nebius and IREN each fell more than 35% in October amid doubts that future revenue will justify data center spending. CLS is still down 17% year to date, so the rebound tests whether the lower cash flow outlook weighs on the valuation.

market impact

AI infrastructure: strong results lift interest in data center suppliers, CLS rallies premarket

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