Celestica Q2 Earnings Beat Guidance, Raises 2026 Outlook
Celestica Q2 earnings topped guidance and the company raised FY 2026 targets on July 27, prompting traders to reprice revenue and EPS expectations.
KEY TAKEAWAYS
- Q2 revenue of $4.7 billion and adjusted EPS of $2.54 exceeded the high end of guidance.
- Company raised full-year 2026 revenue guidance to $20.5 billion and adjusted EPS guidance to $11.30.
- Management said growth should accelerate in 2027, reinforcing AI infrastructure and hyperscaler exposure.
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Celestica’s Q2 earnings, disclosed in a press release on July 27, 2026, showed revenue and adjusted EPS both exceeded the high end of guidance, and the company raised its full-year 2026 outlook, signaling faster growth in 2027.
Second Quarter Results and Segment Performance
Celestica Inc. (CLS) reported Q2 2026 revenue of $4.7 billion and adjusted earnings per share of $2.54. GAAP net earnings were $368.8 million, with diluted EPS of $3.17. Revenue rose 62% year over year from $2.89 billion in Q2 2025. Adjusted operating margin reached 8.2%, a new company high.
The Connectivity & Cloud Solutions (CCS) segment drove growth, with revenue rising 84% year over year to $3.81 billion.
Guidance and Outlook
The company raised its full-year 2026 revenue guidance to $20.5 billion and adjusted EPS guidance to $11.30. It also increased its free cash flow outlook for 2026 to $600 million.
For the third quarter, management expects revenue between $5.25 billion and $5.55 billion and adjusted EPS of $2.88 to $3.08.
Management attributed the stronger outlook to higher-than-expected customer demand, improved component supply, and strong first-half performance. They highlighted AI infrastructure and hyperscaler demand as key drivers behind improved visibility.
The combination of the quarter’s outperformance, raised guidance, and acceleration forecast points to faster revenue and EPS growth in 2027, reinforcing Celestica’s position in AI-related supply chains.
The company said it is “expecting growth to accelerate in 2027.”
