Celestica reported Q4 total revenue of $3.65 billion, representing a 44% year-over-year increase driven by surging demand for data center hardware. Gross profit expanded 46% year-over-year, reflecting improved operating leverage and cost efficiencies across its manufacturing facilities. Management attributed much of the growth to hyperscaler customers accelerating artificial intelligence infrastructure upgrades, which drove higher-volume orders and stronger pricing discipline.

The company delivered adjusted earnings per share of $1.89, outperforming consensus estimates by 9%. In its accompanying commentary, Celestica raised its 2026 targets for revenue, operating margin and EPS growth, citing sustained AI spending trends and a robust CapEx pipeline among major cloud providers. The upward revision underscores confidence in securing multi-year contracts for next-generation server and networking components.

Celestica’s growth remains tightly linked to hyperscaler capital-expenditure cycles, with over 60% of revenue now generated from cloud and enterprise data center customers. The ongoing AI build-out by leading technology firms has resulted in several new design-win awards for Celestica, encompassing GPU server chassis, liquid-cooling modules and custom interconnect assemblies. Analysts estimate AI-related revenue could comprise up to 70% of total sales by 2026.

The stock trades at a price-to-earnings ratio near 55x and a price-to-sales ratio of approximately 3.4x, reflecting elevated growth expectations. Celestica maintains a debt-to-equity ratio of 0.45 and a current ratio of 1.47, indicating ample liquidity to support ongoing capacity investments. Key risks include potential shifts of assembly work by hyperscalers to alternative suppliers and softening of AI capex if macroeconomic conditions deteriorate.