Celestica: Hyperscaler Capex May Cool, But Revenue Momentum Still Looks Explosive

Celestica's hyperscaler-driven CCS growth is accelerating, supported by 1.6T networking wins and AI/ML compute ramps, with management guiding very strong enterprise growth into 2027. Massive multiyear capacity expansion, including about $1 billion in capex this year and at least $1.5 billion next year, supports long-term demand visibility but pressures near-term free cash flow margins. Net downward revisions to hyperscaler capex estimates over the next 4 quarters may limit upside to Celestica's revenue catalysts if customers' spending fails to rise much above current expectations.