What’s going on here?
Celestica delivered another standout quarter, posting Q3 2025 revenue of $3.19 billion – up 28% from last year and well ahead of analyst forecasts.
What does this mean?
Celestica, the Canadian company behind data center infrastructure and electronics, is thriving thanks to soaring demand, especially from its Communications segment, which jumped 43% year-over-year. Adjusted earnings per share landed at $1.58, nearly 10% above expectations, while profit margins also improved to a sturdy 7.6%. The company boosted its 2025 sales outlook to $12.2 billion and sees $16 billion in revenue next year, fueled by robust customer orders and operating leverage. Plus, Celestica plans to buy back up to 5% of its own shares – usually a sign that management feels good about the future.
Why should I care?
For markets: Growth stocks are having their moment.
Celestica shares have taken off, now trading at 45 times expected earnings – a jump from a P/E of 28 just last quarter. That leap shows how eager investors are for companies tied to booming technology infrastructure. Analysts are mostly optimistic too: 12 call the stock a ‘buy’ or ‘strong buy,’ and there’s little sign of bearishness. The momentum is lifting the whole sector as upbeat guidance continues to draw investor interest.
The bigger picture: Tech infrastructure is getting a global upgrade.
Celestica’s results shine a light on how the rush for data centers and networking gear is reshaping industries. With digital traffic around the world soaring, providers of the hardware behind the scenes are in demand. Celestica’s upgraded outlook underscores the staying power of this trend, suggesting continued investment and growth across tech supply chains and infrastructure worldwide.
