Celestica Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.98%.
Did CLS Beat Earnings? Q4 2025 Results
Celestica closed out fiscal 2025 with a powerful fourth quarter, posting adjusted EPS of $1.89 against a consensus estimate of $1.76, a beat of 7.39%, while revenue of $3.65 billion topped the $3.52 billion consensus by 3.74% and surged 43.6% year over year. The headline driver was the company's Connectivity & Cloud Solutions segment, where AI-related data center infrastructure demand propelled Hardware Platform Solutions revenue to approximately $1.40 billion, up 72% year over year, pulling the broader CCS segment to $2.86 billion and expanding its margin to 8.4%. The results also landed above the high end of Celestica's own guidance ranges for both revenue and adjusted EPS, underscoring how sharply demand has accelerated. Management paired the beat with a meaningful upward revision to its 2026 outlook, lifting the annual revenue target to $17.00 billion from $16.00 billion and adjusted EPS guidance to $8.75 from $8.20, with Q1 2026 revenue guided in a range of $3.85 billion to $4.15 billion, a trajectory that analysts noted reflects conservative framing given the broader demand backdrop.
- Higher than anticipated customer demand, particularly in the CCS segment
- Stronger than anticipated operating leverage in CCS segment
- Hardware Platform Solutions (HPS) revenue surging 72% year-over-year
- Adjusted operating margin improved to 7.7% from 6.8% year-over-year
- Continued AI-related data center infrastructure demand
“Our financial performance in the fourth quarter was very strong, with revenue of $3.65 billion and adjusted EPS (non-GAAP)* of $1.89, both exceeding the high end of our guidance ranges. We had a solid finish to 2025, achieving revenue of $12.4 billion, up 28%, while our adjusted EPS (non-GAAP)* grew 56% year-over-year.”
Celestica CEO, on the earnings call
Forward Guidance & Outlook
Celestica raised its 2026 annual outlook, now expecting revenue of $17.0 billion (up from $16.0 billion) and adjusted EPS (non-GAAP) of $8.75 (up from $8.20), driven by stronger customer demand for Q1 2026 and improved demand visibility for the remainder of 2026. Adjusted operating margin outlook of 7.8% and free cash flow outlook of $500 million remain unchanged. Q1 2026 guidance calls for revenue of $3.850 billion to $4.150 billion, adjusted operating margin of 7.8% at the mid-point, and adjusted EPS of $1.95 to $2.15. The company anticipates capital expenditures of approximately $1 billion in 2026 (roughly 6% of revenue outlook) to expand global manufacturing capacity. Management believes the 2026 revenue growth trajectory will be sustained into 2027. The outlook assumes no material changes to tariffs or trade restrictions compared to those in effect as of January 28, 2026.
CLS YoY Financials
CLS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.