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TSX:CLSBullishEarningsShort Term

High materiality9/10

Celestica Announces Second Quarter 2026 Financial Results

StockNews.AIJul 27, 4:38 PM EDT1 source

Trading thesisImportance 9/10

Bullish on TSX:CLS over the next 1–3 quarters as guidance is raised on stronger demand and margin strength.

AI summary

What happened and why it matters

Celestica posted a strong Q2 2026 with $4.70B revenue (up 62% YoY) and adjusted EPS of $2.54, topping guidance. The company raised its full-year outlook to $20.5B revenue and $11.30 EPS, signaling accelerating growth into 2027. With CCS and ATS expanding and better component supply, the catalyst suggests potential valuation re-rating for TSX:CLS near-term.

Raised 2026 revenue outlook to $20.5B and adj EPS to $11.30; potential multiple expansion.
Q2 beat driven by higher operating leverage; CCS margins and ATS growth remain supportive.
2027 revenue growth expected to accelerate beyond 65% with margin expansion.

Sentiment rationale

Material beat on top-line and margins, plus raised 2026/27 guidance; improves cash flow visibility and profitability trajectory, likely prompting reassessment of CLS's multiple and potential re-rating in the near term.

Key facts

01
Q2 2026 revenue $4.70B, up 62% YoY; adjusted EPS $2.54.
02
Raised 2026 outlook to $20.5B revenue and $11.30 EPS; 2027 growth to accelerate.
03
Q3 2026 guidance: $5.25–$5.55B revenue; 8.4% margin; $2.88–$3.08 EPS.
04
CCS revenue $3.81B (84% YoY); ATS $0.89B (+8% YoY); margin gains.

Earnings

Earnings category analysis aligns: Celestica's beat and updated guidance indicate stronger data-center demand, improved visibility, and higher operating leverage, supporting a higher valuation multiple and potential outperformance in the TSX:CLS stock.