Celestica (CLS) Stock: OpenAI, AMD and Record Margins — What a Quarter

TLDR

• Celestica reported Q2 adjusted EPS of $2.54, beating estimates of $2.29 by 10.92%
• Revenue hit $4.7 billion, up 62% year over year, topping forecasts by 8.08%
• Full-year 2026 revenue guidance raised to $20.5 billion from $19 billion
• Operating margin hit a record 8.2%, up 80 basis points year over year
• Management flagged new growth tied to OpenAI, AMD’s Helios platform and 1.6T networking

Celestica (CLS) stock rose 4.52% to $449.49 after the company reported Q2 results that beat Wall Street on both earnings and revenue, and raised its full-year outlook.

Celestica Inc., CLS

Adjusted EPS came in at $2.54, above the $2.29 consensus estimate. Revenue of $4.7 billion topped forecasts by 8.08% and was up 62% from the same quarter last year.

Operating margin reached a record 8.2%, up 80 basis points year over year. Management called it the strongest quarter in company history for earnings per share.

CELESTICA $CLS Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $4.70B (Est. $4.37B) 🟢; +62% YoY
🔹 Adj. EPS: $2.54 (Est. $2.29) 🟢; +83% YoY
🔹 Adjusted Operating Margin: 8.2%; +80 bps YoY

Raises FY26 Guide:
🔹 Revenue: $20.5B (Est. $19.15B) 🟢; raised from $19.0B
🔹 Adj. EPS: $11.30… pic.twitter.com/U0xoIPDebp

— Wall St Engine (@wallstengine) July 27, 2026

Growth was driven by both main business segments. Communications and enterprise demand stayed strong, fueled by 800G networking products and a fast-growing AI compute business.

The company’s higher-margin HPS segment also expanded, giving Celestica more pricing power and better operating leverage. Free cash flow came in at $147 million for the quarter.

Full-Year Guidance Raised Across the Board

Celestica lifted its full-year 2026 revenue outlook to $20.5 billion from $19 billion. Adjusted EPS guidance moved up to $11.30 from $10.15.

The company also raised its adjusted operating margin target to 8.4% from 8.1%, and free cash flow guidance increased to $600 million from $500 million.

For Q3, Celestica guided for revenue of $5.25 billion to $5.55 billion and adjusted EPS of $2.88 to $3.08. Communications revenue is expected to grow around 60% in the quarter.

Enterprise revenue is expected to surge roughly 190% in Q3, driven by AI compute and storage demand.

Management also provided a first look at 2027, saying revenue growth should accelerate beyond the 65% growth expected in 2026.

OpenAI and AMD Partnerships in Focus

CEO Rob Mionis confirmed Celestica will collaborate with OpenAI and Broadcom to support custom accelerator roadmaps. Initial deliveries of custom racks are expected later this year.

The company also highlighted AMD’s Helios platform and 1.6 terabit networking programs as key growth drivers going forward.

CFO Mandeep Chawla noted that the main constraint on growth is not demand but materials supply. He said capacity plans are already in place for both 2026 and 2027.

Capital expenditure for 2026 is expected to reach around $1 billion. Management is using $1.5 billion as a placeholder for 2027.

Over the last four quarters, Celestica has beaten consensus EPS estimates four times.

The stock carries a Zacks Rank #2 (Buy) rating. Its P/E ratio stands at 37.46 with a PEG ratio of 0.3, which suggests the stock is priced low relative to near-term earnings growth.

Celestica has added about 3.3% year to date, trailing the S&P 500’s gain of 8.3%.

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