Celestica Raises 2026 Revenue Target to $17B, EPS Estimates Rise Over 7%
Analysts have raised Celestica’s 2026 and 2027 EPS estimates by 7.5% and 7.1% to $8.83 and $12.61, reflecting bullish outlook on AI-driven networking and compute demand. The company lifted its 2026 revenue target to $17 billion (from $16 billion), forecasting a 7.8% non-GAAP operating margin, $8.75 EPS and $500 million in free cash flow.
1. Estimate Revisions for 2026 and 2027
Analysts have increased Celestica’s 2026 EPS forecast by 7.5% to $8.83 per share and its 2027 view by 7.1% to $12.61, marking upward revisions over the past 60 days that reflect growing confidence in the company’s AI and data center exposure.
2. Product Innovations Fueling AI Demand
Celestica launched the SD6300 ultra-dense storage expansion system with a 1125 mm footprint for standard 1200 mm racks, plus the DS6000 (3RU, 64-port 1.6TbE) and DS6001 (2OU hybrid-cooled, 64-port 1.6TbE) switches, collectively doubling its high-bandwidth data center switching capacity for AI/ML workloads.
3. 2026 Financial Guidance Raised
The company raised its 2026 revenue target to $17 billion from $16 billion, projects a 7.8% non-GAAP operating margin, $8.75 in adjusted EPS and $500 million in non-GAAP free cash flow, underpinning its bullish outlook on AI-driven enterprise spending.
4. Market Performance and Customer Diversification
Over the past year, Celestica’s stock has surged 209.2%, outpacing industry growth of 115.8% as well as peers like Flex Ltd. and Jabil Inc., while its diversified customer base across communications, healthcare, aerospace, energy and cloud services bolsters resilience.