Celestica raised its forecast for the year, citing expectations for stronger customer demand after sales jumped in its latest quarter.
Celestica shares jumped 8.3% in extended trading.
The Toronto-based data center infrastructure company said Monday it now forecasts adjusted earnings per share of $11.30 for the year, up from $10.15 previously. It now expects full-year revenue of $20.5 billion, up from a prior forecast of $19 billion.
The company said the increase to its guidance is driven by its projections for stronger customer demand in the current quarter, better visibility into the remainder of 2026 and improved component supply.
For the current quarter, the company expects adjusted earnings per share of $2.88 to $3.08 on revenue of $5.25 billion to $5.55 billion. Both ranges came in above analyst projections for adjusted per-share earnings of $2.65 and revenue of $4.94 billion, according to FactSet.
Additionally, the company said it expects its growth in 2027 to accelerate from the 65% growth it forecast for 2026. It also projects its adjusted earnings per share will grow at a faster rate than its revenue next year.
"Looking beyond 2026, our visibility continues to increase," Chief Executive Rob Mionis said, pointing to new program wins and what he called very strong customer demand.
The guidance came as the company logged a higher profit as revenue surged in the second quarter, driven by particularly strong growth in its connectivity and cloud solutions business and its hardware platform solutions division.
Celestica's second-quarter profit came in at $368.8 million, or $3.17 a share, compared with $211 million, or $1.82 a share, a year earlier.
Adjusted earnings per share were $2.54, compared with estimates of $2.27 a share according to analysts polled by FactSet.
Revenue jumped 62% to $4.7 billion, compared with analyst estimates of $4.33 billion.
Connectivity and cloud solutions revenue gained 84%, while hardware platform solutions revenue increased 58%. Advanced technology solutions segment revenue rose 8%.