Celestica Inc. reported a robust second quarter for fiscal 2026, surpassing Wall Street expectations on both revenue and earnings while raising its full-year financial outlook. The results reinforce the company’s growing role in the rapidly expanding AI infrastructure ecosystem, where demand for advanced networking, cloud computing, and data center hardware continues to accelerate.

The earnings report also highlighted improving profitability across multiple business segments, prompting investors to push the stock higher in after-hours trading as markets responded positively to stronger guidance and optimistic long-term commentary.

Revenue and Earnings Exceed Expectations

Celestica reported revenue of $4.70 billion, comfortably above analyst estimates of $4.37 billion, representing approximately 62% year-over-year growth. Adjusted earnings per share reached $2.54, ahead of the consensus estimate of $2.29 and marking an impressive 83% increase from the same period a year earlier.

The company’s adjusted operating margin expanded to 8.2%, an improvement of 80 basis points year over year, reflecting stronger operational efficiency and a more profitable mix of high-value products. Adjusted operating earnings climbed to $386.3 million, exceeding expectations while GAAP earnings per share increased to $3.17, rising 74% from the prior-year period.

Management Raises Full-Year and Third-Quarter Guidance

Following the stronger-than-expected quarter, Celestica increased its fiscal 2026 outlook across several key financial metrics. The company now expects full-year revenue of $20.5 billion, up from its previous forecast of $19.0 billion. Adjusted earnings per share guidance was also raised to $11.30, compared with the prior forecast of $10.15.

Management also lifted its adjusted operating margin target to 8.4% from 8.1% and increased expected free cash flow to $600 million, up from $500 million previously. For the third quarter, Celestica forecast revenue between $5.25 billion and $5.55 billion, exceeding analyst expectations, while adjusted EPS guidance of $2.88 to $3.08 also came in ahead of consensus estimates.

AI Infrastructure Continues to Drive Long-Term Growth

The company’s Connectivity & Cloud Solutions (CCS) segment remained the primary growth engine, generating $3.81 billion in revenue, an increase of 84% year over year. Meanwhile, the Advanced Technology Solutions (ATS) segment reported revenue of $889 million, representing more moderate but still positive growth.

Management stated that stronger first-half execution, improving component availability, and increasing customer demand supported another upward revision to annual guidance. Looking beyond 2026, executives indicated that visibility continues to improve and expect 2027 revenue growth to accelerate beyond the approximately 65% growth anticipated for 2026, supported by new customer programs and expanding AI infrastructure investments.

Celestica’s results further illustrate how manufacturers supplying hyperscale cloud providers and AI hardware ecosystems continue benefiting from elevated capital spending across the technology sector. As artificial intelligence deployment expands globally, contract manufacturers with expertise in networking, compute infrastructure, and advanced electronics remain positioned to capture additional growth opportunities.

Looking ahead, investors will closely monitor Celestica’s execution against its upgraded guidance, continued margin expansion, customer concentration trends, and the sustainability of AI-related infrastructure spending. Additional program wins, supply chain stability, and enterprise investment in next-generation computing platforms will likely remain the primary catalysts shaping the company’s financial performance over the coming quarters.