Celestica Posts 44% Q4 Revenue Surge and 70% EPS Jump
Celestica delivered Q4 2025 revenue of $3.67 billion, up 44% year-on-year, and EPS of $1.89, a 70% increase, marking its 13th consecutive beat. Its AI-focused Hardware Platform Solutions grew 63% in 2024, and a sub-12% debt ratio with strong free cash flow supports further growth.
1. Q4 2025 Financial Performance
Celestica reported revenue of $3.67 billion for Q4 2025, up 44% year-on-year, and EPS of $1.89, a 70% increase, representing its thirteenth consecutive quarterly earnings beat. The company also raised its FY2026 guidance following strong free cash flow generation.
2. AI and Data Center Growth Drivers
The Connectivity and Cloud Solutions segment, which contributes 67% of sales, supplies AI-optimized servers, networking switches and storage platforms to major hyperscalers, while Hardware Platform Solutions grew 63% in 2024, underpinned by demand from Amazon, Google and Meta.
3. Valuation, Cash Flow, and Risks
Celestica’s trailing P/E stands at 35.9x with a forward P/E of 28.99x and a PEG ratio near 1.2, supported by a debt ratio below 12% and robust cash flow. Investor caution is warranted due to high customer concentration and recent share pullbacks.