Why Celestica Stock Is Soaring Today

Core Insights - Celestica's stock surged by 7.8% during trading, reaching a peak increase of 17.8% earlier in the day, outperforming the S&P 500 and Nasdaq Composite indices [1][4] - The company reported strong third-quarter results, exceeding Wall Street expectations, and raised its full-year guidance along with promising targets for 2026 [2][4][8] Financial Performance - In Q3, Celestica achieved non-GAAP adjusted earnings per share of $1.58 on revenue of $3.19 billion, surpassing analyst estimates of $1.49 EPS and $3.04 billion in revenue [4] - Revenue increased by 27.6% year-over-year, indicating robust sales momentum expected to continue through 2026 [4][6] Future Guidance - For the full year, Celestica now anticipates sales of approximately $12.2 billion, up from a previous target of $11.55 billion, and adjusted earnings per share of about $5.90, increased from $5.50 [5] - Looking ahead to next year, the company set revenue targets of roughly $16 billion and adjusted earnings per share of approximately $8.20, with projected adjusted free cash flow of around $500 million [6] Market Trends - Celestica is experiencing significant demand growth from cloud hyperscaler customers, driven by the expansion of data center infrastructure related to artificial intelligence (AI) [6][8]