Celestica reported a blockbuster fourth quarter with adjusted earnings per share of $1.89 and revenue up 44% year-over-year, driven primarily by a 64% surge in its CCS (Customer-Customized Solutions) services. Despite this top-line strength, free cash flow remained essentially flat sequentially as capital expenditures jumped to $1.0 billion—approximately 6% of quarterly revenue—well above the company’s historical 3%–4% range. Management pointed out that the higher CAPEX reflects strategic investments in next-generation automated manufacturing equipment and expanded data-center capacity to support AI infrastructure production.

Bolstered by accelerating demand for AI-powered systems, Celestica raised its fiscal 2026 revenue guidance by 3 percentage points to a growth range of 15%–18% year-over-year, and increased its adjusted EPS target by $0.10 at the midpoint to $6.25–$6.45. The company cited multi-year build-out projects with cloud hyperscalers and semiconductor firms as key drivers of sustained order momentum. With its manufacturing footprint optimized for high-mix, high-volume assembly, Celestica expects gross margins to improve by 50–70 basis points in the coming quarters as utilization rises and fixed-cost absorption benefits accelerate.