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.
