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Investing.com -- Celestica Inc (NYSE:CLS) reported third-quarter earnings that surpassed analyst expectations, driven by robust demand for AI data center infrastructure, sending shares soaring around 10% in premarket trading on Tuesday.
The data center infrastructure provider posted adjusted earnings of $1.58 per share for the third quarter, exceeding the analyst consensus of $1.47. Revenue jumped 28% YoY to $3.19 billion, surpassing the $3.02 billion analyst estimate and the $2.50 billion reported in the same quarter last year.
Celestica’s strong performance prompted management to raise its full-year outlook. The company now expects 2025 revenue of $12.2 billion, up from its previous guidance of $11.55 billion, and adjusted EPS of $5.90, increased from $5.50 previously.
"We achieved very strong results in the third quarter, with revenue of $3.19 billion and non-GAAP adjusted EPS of $1.58, representing growth of 28% and 52%, respectively, each exceeding the high end of our guidance ranges," said Rob Mionis, President and CEO of Celestica.
For the fourth quarter, Celestica forecasts revenue between $3.325 billion and $3.575 billion, well above the consensus estimate of $3.094 billion. The company expects adjusted EPS of $1.65 to $1.81, compared to analysts’ expectations of $1.52.
The company also introduced its 2026 annual outlook, projecting revenue of $16.0 billion and adjusted EPS of $8.20, representing growth of 31% and 39% respectively.
"Celestica indicated it is seeing strong demand from its largest customers for AI data center infrastructure and it anticipates strong demand momentum to continue into 2027," RBC Capital Markets analyst Paul Treiber said.
Celestica’s Connectivity & Cloud Solutions segment was particularly strong, with revenue increasing 43% YoY to $2.41 billion, while the segment margin improved to 8.3% from 7.6% a year earlier. The company achieved an adjusted operating margin of 7.6% in Q3, compared to 6.8% in the same period last year.
The company also announced plans to launch a new Normal Course Issuer Bid, which would allow it to repurchase up to 5% of its public float over the next twelve months.
(Luke Juricic contributed to this report.)