Celestica Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.14%.
Did CLS Beat Earnings? Q2 2026 Results
Celestica delivered a blowout second quarter of 2026, with the electronics manufacturing giant posting adjusted EPS of $2.54, beating the $2.31 consensus by 10.04% and extending its streak of consecutive EPS beats to five quarters. <a href="https://247wallst.com/investing/2026/07/27/live-will-celestica-crush-q2-earnings-tonight-after-the-market-closes/">Investors watching closely</a> saw revenue of $4.70 billion arrive well above the $4.39 billion consensus, representing 62.4% growth year over year, fueled primarily by explosive momentum in the Connectivity & Cloud Solutions segment, where revenue surged 84% to approximately $3.81 billion on the back of surging hyperscaler demand for AI infrastructure. Adjusted operating margin reached 8.2%, up from 7.4% a year ago, as the company captured significant operating leverage at scale. Management responded with a substantial guidance raise, lifting full-year 2026 revenue expectations to $20.50 billion from $19.00 billion and adjusted EPS to $11.30 from $10.15, while guiding Q3 revenue of $5.25 billion to $5.55 billion; notably, the company also signaled that 2027 revenue growth is expected to accelerate beyond the 65% rate anticipated for the current year.
- Higher than anticipated customer demand and strong operational execution drove revenue above guidance
- Stronger than anticipated operating leverage drove adjusted EPS above guidance
- CCS segment revenue increased 84% year-over-year, driven by data center infrastructure demand
- Adjusted operating margin of 8.2% represented a new company high
- Improved component supply supported stronger results
- Favorable profit mix contributed to a lower adjusted effective tax rate of 20%
“Celestica delivered very strong performance in the second quarter, achieving revenue of $4.70 billion and adjusted EPS (non-GAAP)* of $2.54, each exceeding the high end of our guidance ranges. Our adjusted operating margin (non-GAAP)* of 8.2% represents another new high for the company, demonstrating the strength of our execution.”
Celestica CEO, on the earnings call
Forward Guidance & Outlook
Celestica raised its 2026 annual outlook: revenue now expected at $20.5 billion (previously $19.0 billion), adjusted EPS at $11.30 (previously $10.15), adjusted operating margin at 8.4% (previously 8.1%), and free cash flow at $600 million (previously $500 million), reflecting year-over-year revenue growth of 65% and adjusted EPS growth of 87%. For Q3 2026, the company guides revenue of $5.25 billion to $5.55 billion, adjusted operating margin of 8.4% at the midpoint, and adjusted EPS of $2.88 to $3.08. Looking further ahead, the company expects 2027 revenue growth to accelerate beyond the 65% growth rate anticipated for 2026, with adjusted EPS growing at an even faster rate than revenue, driven by higher expected adjusted operating margins.
CLS YoY Financials
CLS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.