Celestica secures AI infrastructure deals through 2028, boosting revenue and margin outlook

Celestica has secured agreements with major hyperscalers extending into 2028, enhancing demand visibility and reducing cancellation risks for its AI infrastructure programs. The company now generates 80% of its revenue from Communications and Cloud Solutions, driven by rapid adoption of 800G and emerging 1.6T technologies. Management projects fiscal year 2027 revenue to exceed $25.5 billion, supported by growing demand for liquid cooling, rack-scale AI, and co-packaged optics. Operating margins are expected to improve to 8.1% in FY26 with a strong return on invested capital (ROIC) of 50%, though risks include silicon shortages, high capital expenditures, customer concentration, and free cash flow challenges amid rapid growth.