Celestica reported Q4 adjusted earnings of $1.89 per share, surpassing the Zacks Consensus Estimate of $1.74 and up from $1.11 a year ago. Revenues for the quarter reached $3.72 billion, a record high driven by robust demand in its communications and cloud segment. Despite the beat, shares declined 6.1% in after-hours trading, reflecting investor concern over profit margins slipping by 120 basis points year-over-year to 6.8%.

Management updated its 2026 guidance to forecast full-year revenues of $14.8 billion–$15.2 billion and adjusted earnings per share of $7.20–$7.60, down from prior midpoints of $15.4 billion and $7.85 per share. The revision factors in potential shifts of high-margin assembly work for hyperscale AI servers, after a Digitimes report indicated that Google may reassign Tensor Processing Unit assembly to alternative suppliers. This news coincided with a one-day share price drop of $18.83, or 6.08%, on January 22.

Celestica trades at a forward price-to-earnings ratio of 54.97 and a price-to-sales ratio of 3.41, signaling strong investor willingness to pay for anticipated AI infrastructure growth. Its enterprise-value-to-sales ratio of 3.46 also ranks in the top quartile of the electronics manufacturing services industry. The company maintains a debt-to-equity ratio of 0.45 and a current ratio of 1.47, underscoring healthy liquidity. However, Pomerantz LLP has launched a securities fraud investigation into whether Celestica adequately disclosed customer concentration risks, adding a layer of legal uncertainty even as analysts at three major brokerages recently upgraded the stock to a Buy rating.