Celestica delivered a standout second quarter, reporting adjusted earnings per share of $2.54, surpassing analyst expectations by nearly 11 percent. Revenue climbed to $4.7 billion, a 62 percent increase year over year and well above forecasts. Operating margin hit a record 8.2 percent, reflecting an 80 basis point rise from the previous year, marking the company’s most profitable quarter to date.
Growth was fueled by solid demand in communications and enterprise segments, particularly driven by 800G networking products and an expanding AI compute business. Celestica's high-performance solutions segment gained momentum as well, enhancing pricing power and operational use. The company generated $147 million in free cash flow during the quarter.
Management raised full-year 2026 guidance, expecting revenue of $20.5 billion, up from prior estimates of $19 billion. Adjusted EPS forecasts were lifted to $11.30 from $10.15. Operating margin guidance also increased to 8.4 percent, and free cash flow expectations rose to $600 million. For the upcoming quarter, revenue is projected between $5.25 billion and $5.55 billion, with communications revenue anticipated to grow approximately 60 percent and enterprise revenue to surge nearly 190 percent, largely due to AI compute and storage demand.
CEO Rob Mionis highlighted new growth opportunities tied to partnerships with OpenAI and Broadcom, geared toward supporting custom accelerator roadmaps. Collaboration with AMD’s Helios platform and advancements in 1.6 terabit networking also contributed to optimism around future expansion. Early indications for 2027 suggest an acceleration beyond the already strong 65 percent revenue growth expected for 2026.
Shares responded positively, rising 4.5 percent following the earnings release.
