Celestica has secured expanded manufacturing agreements with two of the world’s largest hyperscale cloud providers, positioning its Connectivity & Cloud Solutions division for outsized growth. The company’s collaboration with a leading search and advertising giant and a major social media network underpins its ability to capture incremental share of their multi-billion-dollar infrastructure upgrades. Combined annual spending by these partners on data center hardware is expected to exceed $100 billion in 2026, with Celestica targeting a double-digit percentage allocation of that budget.

Management has unveiled a sharply increased capital expenditure plan of $1 billion for fiscal 2026, representing a 397.5% year-over-year jump. This investment will expand advanced manufacturing capacity in Ontario and Malaysia, enhance automation across key assembly lines and support the introduction of next-generation high-performance computing modules. As a result, the company has set full-year revenue guidance of $17 billion (up 37.2% year-over-year) and adjusted earnings per share of $8.75 (up 44.6%), reflecting confidence in sustained hyperscaler demand through at least 2027.

In the fourth quarter of 2025, Celestica reported revenue of $3.65 billion (a 44% increase year-over-year) and gross profit growth of 46%, driven by surging data center orders. Operating margin expanded by 120 basis points, to 6.8%, as higher volume and improved production efficiencies offset input cost inflation. With a strengthened balance sheet—net debt to EBITDA now below 1.0x—the company is positioned to pursue strategic bolt-on acquisitions in Europe and Asia, targeting complementary power-supply and interconnect specialists to round out its AI infrastructure portfolio.