Q2 2026 revenue and adjusted EPS* above the high end of our guidance ranges;
Raising 2026 annual outlook and expecting growth to accelerate in 2027
(All amounts in U.S. dollars)
TORONTO, — Celestica Inc.1 (NYSE: CLS) (TSX: CLS), a global leader in data center infrastructure and advanced technology solutions, today announced its financial results for the second quarter ended June 30, 2026 (Q2 2026).
Q2 2026 Highlights
- Revenue: $4.70 billion, increased 62% compared to $2.89 billion for the second quarter of 2025 (Q2 2025).
- GAAP earnings from operations as a % of revenue: 9.8%, compared to 9.4% for Q2 2025.
- Adjusted operating margin (non-GAAP)*: 8.2%, compared to 7.4% for Q2 2025.
- GAAP earnings per share2 (EPS): $3.17, compared to $1.82 for Q2 2025.
- Adjusted EPS2 (non-GAAP)*: $2.54, compared to $1.39 for Q2 2025.
“Celestica delivered very strong performance in the second quarter, achieving revenue of $4.70 billion and adjusted EPS (non-GAAP)* of $2.54, each exceeding the high end of our guidance ranges. Our adjusted operating margin (non-GAAP)* of 8.2% represents another new high for the company, demonstrating the strength of our execution,” said Rob Mionis, CEO.
“Driven by our strong first-half performance, strengthening second half customer forecasts, and improved component supply, we are pleased to once again raise our 2026 annual outlook. Our 2026 revenue outlook is now $20.5 billion, and our adjusted EPS (non-GAAP)* outlook is now $11.30, reflecting year-over-year growth of 65% and 87%, respectively.”
“Looking beyond 2026, our visibility continues to increase. Driven by very strong customer demand, and supported by new program wins, we expect revenue growth in 2027 to accelerate beyond the 65% growth rate we are anticipating in 2026. We also anticipate adjusted EPS (non-GAAP)* to grow at a faster rate than our revenue in 2027, driven by higher expected adjusted operating margin (non-GAAP)*.”
1 Celestica has two operating and reportable segments: Connectivity & Cloud Solutions (CCS) (consists of our Communications and Enterprise (servers and storage) end markets) and Advanced Technology Solutions (ATS) (comprised of our Aerospace and Defense, Industrial, HealthTech, and Capital Equipment businesses). Segment performance is evaluated based on segment revenue, segment income, and segment margin (segment income as a percentage of segment revenue). See note 3 to our June 30, 2026 unaudited interim condensed consolidated financial statements (Q2 2026 Interim Financial Statements) for further detail.
2 Per share information included in this press release is based on diluted shares outstanding unless otherwise noted.
* See Use of Non-GAAP Measures and Schedule 1 for, among other items, non-GAAP financial measures (and ratios) included in this press release, their definitions, uses, and a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. Non-GAAP measures in this press release are denoted with an asterisk (*).
Third Quarter of 2026 (Q3 2026) Guidance
| Q3 2026 Guidance | |
| Revenue (in billions) | $5.25 to $5.55 |
| Adjusted operating margin (non-GAAP)* | 8.4% at the mid-point of our revenue and adjusted EPS (non-GAAP) guidance ranges |
| Adjusted EPS (non-GAAP)*(1) | $2.88 to $3.08 |
(1) Q3 2026 guidance excludes a negative $0.27 to $0.33 per share (pre-tax) aggregate impact on net earnings on a GAAP basis for employee stock-based compensation (SBC) expense, amortization of intangible assets (excluding computer software), and restructuring charges. Q3 2026 guidance assumes an adjusted effective tax rate (non-GAAP)* of approximately 20% and no share repurchases or issuances in Q3 2026.
2026 Annual Outlook and Long-Term Demand Update
- Revenue of $20.5 billion (previous outlook $19.0 billion) (1)
- Adjusted EPS (non-GAAP)* of $11.30 (previous outlook $10.15) (1)(2)
- Adjusted operating margin (non-GAAP)* of 8.4% (previous outlook 8.1%) (1)
- Free cash flow (non-GAAP)* of $600 million (previous outlook $500 million) (1)
We now expect our revenue growth rate in 2027 to accelerate, relative to the 65% revenue growth rate anticipated in our latest 2026 Annual Outlook. We also anticipate adjusted EPS (non-GAAP)* to grow at a faster rate than our revenue in 2027.
(1) The increase of our 2026 annual outlook is driven by expected stronger customer demand for Q3 2026 and improvements in our demand visibility for the remainder of 2026.
(2) 2026 guidance assumes an adjusted effective tax rate (non-GAAP)* of approximately 20% and no share repurchases or issuances in the remainder of 2026.
