"That business model worked, but it came with thin margins and commodity pricing pressure. What changed this quarter is the clarity. Management didn't just beat guidance. They raised 2026 outlook to $16.0 billion in revenue (up 31% from the current $12.2 billion) and guided adjusted EPS to $8.20 (up 39% from $5.90). More importantly, the company provided guidance for next year, and it's very good. That signals confidence in a trajectory, not hope."
"The Communications segment revenue hit $2.41 billion, up 43% year-over-year. CEO Rob Mionis explicitly tied this to "investments in AI data center infrastructure." That's not a feature. That's the business now. Look at the operating margin. It improved to 7.6% from 6.8% a year ago. That's not a one-quarter blip. The company is converting higher revenue into real profit. Net income grew 75% year-over-year while revenue grew 21%."
Celestica reported strong Q3 results and raised 2026 guidance to $16.0 billion in revenue and $8.20 adjusted EPS. Communications revenue rose 43% to $2.41 billion, driven by investments in AI data center infrastructure. Operating margin improved to 7.6% from 6.8% year-over-year. Net income grew 75% while revenue grew 21%, indicating operating leverage. Management provided explicit guidance for next year, signaling confidence in a sustained growth trajectory. Shares rose in after-hours trading as the company began converting higher AI-driven revenues into profit and generating cash to support future cycles.
Read at 24/7 Wall St.
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