Celestica Reports Strong Q2 Earnings and Raises Full-Year Outlook
Celestica reported second-quarter revenue of $4.70 billion in July 2026, representing a year-over-year increase of 62%. Adjusted earnings per share (EPS) rose by 83% to $2.54, driven primarily by strong demand for AI infrastructure and networking programs. The company also raised its full-year revenue forecast to $20.5 billion and adjusted EPS outlook to $11.30, citing robust growth in hyperscaler AI/ML initiatives and custom-rack opportunities with AMD and OpenAI. Celestica's Connectivity & Cloud Solutions (CCS) segment accounted for 81% of total revenue at $3.81 billion, up 84% year-over-year, while the hardware platform solutions business saw a 58% increase to $1.9 billion in quarterly sales. The company plans approximately $1 billion in capital expenditures across Thailand, Japan, and Texas to address component availability constraints as demand outpaces current capacity. Looking ahead, Celestica expects continued growth into 2027 with the ramping of higher-capacity networking programs such as 800G switches and co-packaged optics. The company also anticipates a significant acceleration in AI compute adoption across hyperscale clients.
Topics: AI infrastructure capital expenditures operating margin revenue growth