Barclays increased its price target on Celestica to $391 from $359 and reiterated an Overweight rating after the company raised its fiscal 2026 outlook by approximately $1 billion. The analyst noted the updated guidance remains conservative, suggesting further upward revisions could follow as demand trends firm.

Celestica reported Q4 revenue of $3.65 billion, a 44% year-over-year increase, driven by robust demand for data center and next-generation computing hardware. For full-year 2025, revenue rose 28% to $12.39 billion and GAAP EPS more than doubled, reflecting expanded operating margins and improved cost efficiencies.

Management set fiscal 2026 guidance at $17.0 billion in revenue and $8.75 EPS, reflecting accelerating AI-driven hardware demand and clearer customer deployment roadmaps. The company plans $1 billion in capital expenditures next year, fully funded by operating cash flow, to support long-term AI infrastructure programs.