TORONTO, July 28, 2026, 04:18 EDT — U.S. premarket trading; Canadian markets have ended for the day.
- After-hours latest: $343.75, gaining 8.02%. Monday’s closing price: $318.24, higher by 4.25%.
- Celestica Inc.’s 2026 revenue forecast was raised by 7.9% to $20.5 billion, while adjusted EPS guidance was lifted 11.3% to $11.30.
- Initial calculations indicate fourth-quarter revenue reached $6.35 billion, with adjusted earnings per share at $3.62.
Celestica shares pointed to an 8% gain after the company raised its full-year outlook. After-hours pricing was last indicated at $343.75, compared to Monday’s close of $318.24.
The key takeaway for investors is contained within the full-year results. Celestica must generate $11.75 billion in revenue over the second half, which is a 34.4% increase over its sales in the first half.
Adjusted earnings per share need to total $6.60 in the second half, marking a 40.4% increase over the figure reported in the first half.
Midway through the third quarter, initial calculations show $6.35 billion remaining for Q4, representing a 17.7% increase from Q3 and a 35.2% rise compared to Q2. The implied adjusted EPS stands at $3.62, marking a 21.5% sequential gain.
| Measure | H1 actual | H2 required | Q3 midpoint | Implied Q4* |
|---|---|---|---|---|
| Revenue, $ billion | 8.75 | 11.75 | 5.40 | 6.35 |
| Adjusted EPS, $ | 4.70 | 6.60 | 2.98 | 3.62 |
| Sequential change | — | — | Revenue up 14.9% | Revenue up 17.7% |
| Sequential change | — | — | EPS up 17.3% | EPS up 21.5% |
Initial projections. H2 is calculated by subtracting first-half actuals from the full-year outlook. Q4 reflects H2 figures minus the midpoint for Q3. Celestica did not provide guidance for the fourth quarter.
These residuals do not represent company targets. They indicate the exit rate that is already factored into management’s annual guidance.
Revenue for the second quarter increased by 62% to $4.70 billion, while adjusted EPS jumped 83% to $2.54. Both metrics surpassed analyst expectations by about 7% and 10%, respectively.
The Q3 outlook lifted expectations for the short term. The midpoint for EPS is $2.98, which is 10.8% higher than the most recent consensus. Revenue at the midpoint is projected to climb 14.9% compared with Q2.
The Connectivity and Cloud Solutions segment led results for the quarter. Revenue climbed 84% to $3.81 billion, accounting for 81% of overall sales. Enterprise revenue soared 167% as an AI-compute initiative scaled up.
Communications revenue increased by 62% due to stronger demand for data-centre networking. Hardware Platform Solutions saw sales grow 58%, reaching roughly $1.9 billion.
Operating leverage increased. CCS margin climbed to 8.7%, with ATS margin advancing to 6.3%. Adjusted operating margin for the entire company hit a record 8.2%.
Chief Executive Rob Mionis linked the increase to “strengthening second half customer forecasts” as well as “improved component supply.” Celestica anticipates its growth in 2027 will surpass the 65% rate projected for 2026. Adjusted EPS is expected to outpace revenue growth. Celestica Inc.
Cash flow increased, but expansion continues to demand substantial capital. Operating cash flow totaled $410.9 million, while capital expenditures amounted to $263.8 million. This resulted in free cash flow of $147.1 million.
Celestica increased its annual free cash flow outlook to $600 million, up from the earlier projection of $500 million. The company’s inventory climbed to $3.40 billion, compared with $2.19 billion at the end of the previous year. Despite this, the cash cycle shortened to 47 days from 66.
The stock experienced significant volatility in the previous week ahead of earnings. It peaked at $349.31 on Thursday before ending Friday at $305.28. On Monday, trading fluctuated between $289.26 and $323.55.
Shares are trading at $343.75, representing about 30.4 times the projected adjusted EPS. This valuation offers little cushion if fourth-quarter growth falls short.
Risks: In the second quarter, Celestica’s leading ten clients accounted for 83% of its revenue. Three customers within the CCS segment made up 32%, 17%, and 14%, respectively. Any impact from tariffs, shortages of components, or slower product launches may affect delivery schedules and financial performance.
The initial test of the week is set for 8:00 a.m. EDT. Management will conduct its results call ahead of the opening of North America’s main trading sessions. Investors are expected to question demand trends, availability of components, and whether capacity can support the forecasted Q4 increase.
Core trading in the United States starts after a 90-minute delay. Toronto’s continuous session also begins at 9:30 a.m. ET.
The beat was decisive. The more challenging issue is if Celestica is able to achieve the exit rate.
