Live: Celestica Blows Out Q2 Earnings And Is Soaring 12%
Key Points
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Celestica is up 255% since last May when we declared it the ‘Best AI Stock to Buy in May.’
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The company is reporting earnings tonight, we’ll be posting live updates and analyzing earnings. Wall Street is predicting revenue of $2.69 billion and adjusted EPS of $1.23.
- Nvidia made early investors rich, but there is a new class of 'Next Nvidia Stocks' that could be even better; learn more here.
Live Updates
Reminder: No Earnings Call Until Tomorrow at 8 a.m.
Celestica’s conference call is scheduled for tomorrow at 8 a.m. ET, we’ll see if they say anything that raise shares higher than their already very high levels.
As a reminder, at 24/7 Wall St. we called Celestica ‘The Best AI Stock to Buy in May’ back when it was trading for less than $50 per share.
And we highlighted it as one of the biggest winners of Stargate earlier this year.
So if you’re looking for more stocks that are riding the historic spending wave on AI, make sure to check out our AI Investor Podcast.
We invest $500,000 in top AI stock ideas and give away our research absolutely free of charge. We’ve built the podcast with the mission to be the greatest community for AI investors in the world.
You can listen to our most recent episodes below:
Now Up 9.6% After Hours
Congrats to anyone who owns Celestica, these results are a true blowout. Shares are now up 9.6% after-hours and the company continues to ride the massive wave of spending on AI data centers.
Product Segments and Risks
Here’s a look at product segments, what drove earnings higher, and new risks introduced in the quarter:
Product Segments
• CCS segment revenue: $2.07 billion, up 28% from Q2 2024
• ATS segment revenue: $0.82 billion, up 7% from Q2 2024
Performance Drivers
• Higher than anticipated customer demand, particularly in Communications
Risks
• Higher than expected restructuring charges
Growth Rates
| Metric | Q2 25 | Q2 24 | YoY |
|---|---|---|---|
| Revenue | $2.89B | $2.39B | 20.99% |
| Gross Profit | $371.00M | $245.35M | 51.21% |
| Operating Income | $272.50M | $145.87M | 86.81% |
| Net Income | $211.00M | $99.60M | 111.85% |
| Cash And Equivalents | $313.80M | $433.94M | -27.69% |
| Total Assets | $6.24B | $5.88B | 6.11% |
| Total Liabilities | $4.48B | $4.08B | 9.93% |
| Shareholders Equity | $1.76B | $1.80B | -2.51% |
| Operating Cash Flow | $152.40M | $101.32M | 50.42% |
| Capital Expenditures | $32.50M | $36.93M | -11.99% |
| Free Cash Flow | $119.90M | $64.39M | 86.20% |
What Celestica's CEO Had to Say
“We achieved very strong results in the second quarter, with revenue of $2.89 billion and non-GAAP adjusted EPS* of $1.39, representing growth of 21% and 54%, respectively, each exceeding the high end of our guidance ranges. This performance was bolstered by strong adjusted operating margin* of 7.4%, another new high for the company, demonstrating the strength of our execution.”
Rob Mionis, President and CEO
More Details...
Celestica reported strong financial results for Q2 2025, with revenue reaching $2.89 billion, a 21% increase from Q2 2024, and adjusted EPS of $1.39, up 54% from the previous year.
Both metrics exceeded the high end of the company’s guidance. The GAAP EPS was $1.82, compared to $0.80 in Q2 2024.
The company’s operating margin improved significantly to 9.4% from 5.6% in the previous year. Celestica also repurchased 0.6 million shares for $40 million.
The company raised its 2025 annual outlook, now expecting revenue of $11.55 billion and adjusted EPS of $5.50.
The Connectivity & Cloud Solutions (CCS) segment saw a 28% revenue increase, while the Advanced Technology Solutions (ATS) segment grew by 7%. Celestica’s CEO highlighted strong execution and increased demand as key drivers of performance.
| EPS |
1.39 Beat
|
Est. EPS |
1.18 |
| Revenue |
$2.89B Beat
|
Est. Revenue |
$2.69B |
BIG Raise to Annual Guidance
Here’s Celestica’s new annual guidance:
- Revenue of $11.55 billion (previous outlook $10.85 billion)
- Adjusted operating margin (non-GAAP)* of 7.4% (previous outlook 7.2%)
- Adjusted EPS (non-GAAP)* of $5.50 (previous outlook $5.00)
- Non-GAAP free cash flow* of $400 million (previous outlook $350 million)
Revenue is a big increase and the company continues to raise operating margins.
We said earlier in the blog that Celestica would need to significantly outpace Wall Street earnings to rise tomorrow and they’ve done just that.
It's a BIG Beat
REVENUE: $2.893B VS $2.69B EST
EST EPS: $1.39 VS $1.23 EST
Boom Goes the Dynamite!
Celestica earnings are out and the stock immediately jumps 5%.
More updates to follow.
A Look at Reports After Hours
Cadence Design Systems: Up 6.3%
Rambus: Up 1.7%
Amkor Technology: Up 10.5%
It’s been a good night for technology earnings so far, we’ll see if Celestica is next.
Still No Earnings from CLS
We still don’t have earnings from Celestica.
The other big tech earnings after hours came from Cadence. The company beat last quarter and raised revenue guidance for the year.
Shares are up 5% after hours.
The Closing Bell Has Rung
The closing bell has rung and Celestica’s earnings are expected to post soon.
We’ll have analysis shortly after. Stay on this page and new updates will automatically post.
A Free AI Stock Resource
We’re now 45 minutes away from the closing bell. If you’re waiting for Celestica’s earnings, here’s a free resource you might be interested in.
24/7 Wall St. publishes a podcast dedicated exclusively to investing in top AI stock ideas like Celestica. It’s named ‘The AI Investor Podcast.’
If you’ve invested in Celestica or are interested in the company, you’ll want to listen to our latest episode where we break down the astounding numbers behind Meta Platforms’ newest AI announcements.
We’ve embedded the episode below so you can give it a spin in either Spotify or Apple Podcasts.
A Look Back at Celestica's Q1
Before Celestica reports its Q2 earnings, let’s take a look back at what the company reported in Q1. The company reported earnings on April 24th and is up a scorching 84% since then.
CLS | Celestica Q1’25 Earnings Highlights:
- Adj. EPS: $1.20 ✅; UP +44% YoY
- Revenue: $2.65B [✅]; UP +20% YoY
- Adj. Gross Margin: 11.0% [✅]; UP +110 bps YoY
- Net Income: $86.2M [✅]; DOWN -6% YoY
- Free Cash Flow: $93.6M; UP +38% YoY
- Effective Tax Rate: 24% (vs. 13% YoY)
Outlook:
- 2025 Revenue: $10.85B [✅]
- Celestica raised its full-year 2025 revenue outlook from $10.70 billion to $10.85 billion, driven by a strengthening demand outlook from its CCS customers.
- The company anticipates non-GAAP adjusted EPS of $5.00, up from the previous estimate of $4.75.
Q1 Segment Performance:
- CCS Segment Revenue: $1.84B [✅]; UP +28% YoY
- CCS Segment Margin: 8.0% [✅]; UP +120 bps YoY
- ATS Segment Revenue: $0.81B [✅]; UP +5% YoY
- ATS Segment Margin: 5.0% [✅]; UP +80 bps YoY
Other Key Q1 Metrics:
- Adj. Operating Income: $187.8M [✅]; UP +43% YoY
- Adj. Operating Expenses: $85.0M [✅]; UP +21% YoY
- R&D Expenses: $17.6M; UP +7% YoY
- GAAP Earnings from Operations: $128.8M [✅]; UP +2% YoY
- GAAP EPS: $0.74; DOWN -4% YoY
- Cash and Cash Equivalents: $303.0M; DOWN -29% YoY
CEO Commentary:
- Rob Mionis: “Celestica delivered a strong first quarter in 2025, achieving revenue of $2.65 billion and non-GAAP adjusted EPS of $1.20, both surpassing the high end of our guidance ranges. This strong performance was further highlighted by our highest ever adjusted operating margin of 7.1%.”
Strategic Updates:
- Celestica repurchased 0.6 million common shares for cancellation for $75.0 million in Q1 2025, reflecting its commitment to returning value to shareholders.
In May 2024, I named Celestica (NYSE: CLS) the ‘Best AI Stock to Buy in May.’ Since then, the stock is up an astounding 255%.
Tonight, we’ll see if that momentum can continue. After the bell tonight, Celestica reports earnings. A conference call will follow tomorrow morning at 8 a.m. ET. The moment Celestica’s earnings are released, we’ll be analyzing them in this live blog.
Simply stay on this page and new updates will appear.
What is Celestica Supposed to Report Tonight?
The headline figures Wall Street will be watching for tonight include:
- EPS of $1.23
- Revenue of $2.69 billion
On the EPS side, those estimates represent some significant growth. In Q2 last year, Celestica reported adjusted EPS of .91. So that’s about 35% growth if Celestica hits Wall Street targets.
Yet, after a significant run-up that’s seen Celestica’s share price rise 84% so far this year, it’s likely the company will need to significantly beat earnings if it’s going to rise after the bell. Investors will be paying particularly close attention to what the company guides to in Q3 and for fiscal 2026.
Right now, Wall Street is expecting $1.29 in adjusted EPS and revenue of $2.76 billion next quarter. Expectations for 2025 revenues are $10.96 billion. That’s above the outlook of $10.85 billion in revenue the company last reported in earnings.
That is to say, it’s expected that Celestica will once again be taking its annual outlook up again this quarter when it reports tonight.
Will a beat and raise be enough to keep earnings moving north? We’ll be analyzing earnings live when they hit the wires shortly after the market closes.
Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.
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