Will Growth in the CCS Segment Boost Celestica's Q4 Earnings?

Core Insights - Celestica, Inc. (CLS) is expected to report fourth-quarter 2025 earnings on January 28, with anticipated revenue growth driven by the Connectivity & Cloud Solutions segment due to strong demand in the communications market [2][10] Product Developments - During the quarter, Celestica launched the SD6300 ultra-dense storage expansion system to address the increasing AI data growth in both traditional and hyperscale data centers, optimizing space utilization within standard racks [3] - The company also introduced two new 1.6TbE data center switches, the DS6000 and DS6001, which are designed to support high-bandwidth AI/ML applications, effectively doubling the switching capacity of its current offerings [4] Market Performance - Celestica has gained significant traction in the rapidly growing AI data center market, with strong demand for its 800G switches among hyperscalers expected to drive growth in the communications sector, despite some weakness in the enterprise market [5] - The Zacks Consensus Estimate for CCS revenues is projected at $2.66 billion, up from $1.73 billion a year ago, while total revenue is expected to reach $3.45 billion, reflecting a year-over-year growth of 35.46% [6][10] Earnings Expectations - Net income for the quarter is projected at $218.5 million, with earnings per share estimated at $1.73, an increase from $1.11 in the same quarter last year [6]