Celestica Sees 2027 Revenue Up 90% as 1.6T Switches Surpass 800G Products

Celestica Inc. (CLS) said it expects 2027 revenue of $40 billion, a 90% increase from its 2026 forecast, as 1.6T switch sales overtake its 800G products, with 800G revenue still expected to grow. The Toronto-based electronics manufacturer reported third-quarter revenue of $5.83 billion, up 83% year over year. Networking revenue rose 68%, while computing and storage grew 242%, reflecting broader AI system demand beyond switches. The company projects roughly 110% growth in its connectivity and cloud solutions segment in 2027, weighted toward the second half as major projects ramp. Celestica has secured 10 1.6T projects spanning high-speed accelerator interconnects and server-to-cluster networking. Management said growth in custom AI systems will be driven by Google TPUs and OpenAI's new platform, which is expected to ramp in 2027. The company expects 1.6T adoption to run alongside 800G demand rather than immediately displace it. To fund the projects, Celestica guided 2027 capital spending of $1.5 billion to $2 billion, up from about $1 billion in 2026, including U.S. liquid-cooling rack integration and Asian networking capacity. It cut its 2026 free cash flow forecast to $460 million from $600 million and expects negative free cash flow in 2027 on expansion and working capital outlays.