Canada's Celestica Q2 results beat estimates on strong data center, cloud demand

Celestica

27/07/2026 21:46

Overview
Canada data center infrastructure provider's Q2 revenue rose 62%, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company raised 2026 annual outlook for revenue and adjusted EPS, citing strong demand

Outlook
Celestica raises 2026 revenue outlook to $20.5 bln from $19.0 bln
Company now sees 2026 adjusted EPS at $11.30, up from $10.15
Celestica expects 2027 revenue growth to accelerate beyond 65% rate projected for 2026

Result Drivers
CUSTOMER DEMAND - Co said Q2 revenue exceeded guidance due to higher-than-anticipated customer demand and strong operational execution
CCS SEGMENT GROWTH - CCS segment revenue rose 84% year-over-year, with margin improvement, driven by demand for data center infrastructure and hardware platform solutions
IMPROVED COMPONENT SUPPLY - Management said improved component supply contributed to the raised 2026 outlook

Company press release: ID:nGNX1c3yFp

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$4.70 bln
$4.39 bln (9 Analysts)
Q2 Adjusted EPS
Beat
$2.54
$2.30 (10 Analysts)
Q2 EPS
 
$3.17
 
Q2 Adjusted EBIT Margin
 
8.20%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 29 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)