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

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

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

Reuters Recommended Reads

• July 27 - Navitas Semiconductor Q2 revenue rises on AI infrastructure demand

• July 27 - Sanmina raises fiscal 2026 outlook after Q3 beat

• July 27 - Amkor Technology Q2 revenue rises 26%, beats estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)