The tech manufacturer outpaced expectations on sales, profit, and margins, raising its 2025 outlook as demand from AI data center clients keeps rolling in.
What’s going on here?
Celestica just logged a 28% surge in quarterly sales, reported record profits and margins, and raised its 2025 forecast, thanks to ongoing demand from artificial intelligence data center clients.
What does this mean?
Celestica’s latest numbers highlight how the AI boom is reshaping tech supply chains. Last quarter, revenue hit $3.19 billion, topping analyst forecasts, and adjusted earnings jumped 48% to $183 million. The firm set a new operating margin record at 7.6%, showing it’s squeezing more profit from every sale. Driven by big-name clients ramping up AI infrastructure spending, Celestica upgraded its 2025 goals: now aiming for $12.2 billion in revenue and $5.90 earnings per share, both above previous targets and FactSet’s consensus. The company expects these tailwinds to last into 2026 and beyond – a sign that the appetite for AI-powered tech upgrades is set to stick around.
Why should I care?
For markets: AI tailwinds are lifting tech manufacturers.
Celestica’s standout quarter sent its shares up over 9% in New York, with Toronto-listed stock climbing too. This performance reinforces the idea that hardware makers tied to the AI data center surge might still have room to run, as cash continues to pour into building out digital infrastructure. Investors are scanning the sector for similar moves among other component suppliers as AI adoption spreads.
The bigger picture: AI investment is redrawing the industry map.
Ramped-up data center spending isn’t just a flash in the pan. Major tech players are funneling billions into boosting AI-ready facilities, sending ripples throughout global supply chains. Celestica’s optimistic new forecasts show how the race to build AI infrastructure is setting the pace for the entire tech hardware ecosystem – and could shape tech sector growth for years to come.
