Celestia Inc. Reports Strong Q2 Earnings Driven by AI Demand
Celestica Inc. (CLS) reported strong second-quarter results for fiscal year 2026, driven primarily by record demand from hyperscale customers and rapid technology upgrades in networking and artificial intelligence compute sectors. The company achieved an adjusted operating margin of 8.2%, a new high, due to improved operational efficiency across both its Contract Manufacturing Solutions (CCS) and Advanced Technology Services (ATS) segments. The CCS segment saw significant growth at 84% year-over-year, attributed to the accelerated ramp-up in AI/ML compute programs and strong demand for next-generation networking switches. Management highlighted their competitive advantage as stemming from a large design engineering team integrated with global manufacturing capabilities, enabling efficient transitions from product development to mass production. Looking ahead, Celestica expects 2027 revenue growth to exceed the projected 65% rate in 2026 due to multibillion-dollar opportunities with OpenAI and AMD. The company also raised its free cash flow outlook for 2026 to $600 million despite a planned increase in capital expenditures.
Topics: AI compute earnings hyperscale demand operating margin strategic partnerships