By Adriano Marchese

Celestica shares rose after boosting its outlook and reporting a gain in third-quarter revenue and profit driven by growing demand for artificial intelligence hyperscalers.

Shares were up 7% at 452.95 Canadian dollars, equivalent to $323.76, in midday trading on Tuesday, down from an earlier high on the day of C$496.88.

The electronics manufacturing services company now expects fourth-quarter revenue of $3.33 billion to $3.58 billion, with adjusted EPS between $1.65 and $1.81. Analysts were expecting revenue of $3.08 billion and adjusted EPS of $1.51, according to a survey by FactSet.

Free cash flow is expected to be $25 million higher than previously anticipated at $425 million.

Chief Financial Officer Mandeep Chawla on an earnings call credited the rise in Celestica's outlook to the ramping up of a next-generation program for hyperscaler application in AI and machine learning computing power, which is the hardware resources used to train, run, and scale the software.

Celestica is seeing its largest and fastest-growing market presence within AI data centers, where it supports high-performance networking and customer computing platforms. Its networking and communications segment is also seeing strong demand, and that portfolio is projected to generate $7 billion of revenue this year.

After the close on Monday, Celestica reported third-quarter net income of $267.8 million, or $2.31 per share, up from $89.5 million, or 75 cents per share, from a year earlier.

Revenue rose 28% to $3.19 billion, topping analysts' expectations of $3.03 billion.

Adjusted earnings per share, which strips out one-off items, was $1.58 and topped the company's own guidance of $1.37 to $1.53. It also beat the $1.48 expected by analysts, according to FactSet.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 28, 2025 12:42 ET (16:42 GMT)

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