Celestica Inc. Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Electronic Equipment, Instruments and Components | Market Cap: ₹40.4K Cr
- Revenue outlook for 2026 raised from $17B to $19B, representing 53% growth. - 2026 Outlook: - Revenue raised from $17 billion to $19 billion, a 53% increase.
From Celestica Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹351.02
Market Cap
₹40.4K Cr
P/E Ratio
45.1
Revenue Rank
Margin Rank
How does Celestica Inc. rank in Electronic Equipment, Instruments and Components?
Compare Celestica Inc. against every Electronic Equipment, Instruments and Components company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 1- →Revenue outlook for 2026 raised from $17B to $19B, representing 53% growth.
- →Expected to grow revenue by over $6.5B in 2026 and significantly more in 2027.
- →CCS segment anticipated to see approximately 70% revenue growth in 2026.
- →Communications end market driven by ramping 800G and 1.6T Ethernet switch programs.
- →Enterprise end market to grow about 130%, led by AI ML compute programs and new storage ramps.
- →Strong momentum expected to continue in 2027 with mass production of digital native rack scale and higher hyperscaler program demand.
- →ATS segment revenue outlook increased to mid- to high single-digit growth, supported by capital equipment, HealthTech, and Industrial businesses.
- →CapEx planned to increase to approximately $1.5 billion in 2027 to support growth.
- →Multiple new program awards including networking and compute expansions expected to drive future volume increases.
📈 Profitability & Margins
Rank 2- →2026 Outlook:
- → - Revenue raised from $17 billion to $19 billion, a 53% increase.
- → - Adjusted EPS outlook increased from $8.75 to $10.15, representing 68% growth.
- → - Adjusted operating margin outlook improved to 8.1% (from 7.8%).
- → - Free cash flow guidance maintained at $500 million despite increased capital investment.
- →2027 Outlook:
- → - Expect significantly more than $6.5 billion revenue growth year-over-year.
- → - Strong growth driven by communications, enterprise, AI/ML compute, and new program ramps.
- → - Operating leverage opportunities expected to continue, supporting EPS growth.
- → - Management focused on long-term sustainable EPS growth with disciplined capital allocation.
- →Q1 2026 Performance:
- → - Adjusted operating margin reached a new high of 8.0%.
- → - Adjusted EPS beat guidance, increasing 80% year-over-year.
- → - Positive margin trends expected to continue with strong demand and improved mix.
🏗️ Capital Expenditure Plans
Yes- →Capital expenditures (CapEx) for 2026 are planned at approximately $1 billion.
- →CapEx is expected to increase in 2027, with a rough placeholder estimate of $1.5 billion.
- →Majority of capacity investments are focused on Southeast Asia (Thailand) and the United States (Texas).
- →New capacity coming online in 2026 and 2027, with additional evaluations underway for supporting growth in 2028 and 2029.
- →CapEx decisions are tied to strong business cases with strong ROI and paybacks from new program wins.
- →Investment supports significant growth across networking, compute, and digital native programs.
- →Investments include increased R&D spend, with about 1,350 design engineers focused on next-generation programs.
- →Strategic long-term agreements and NCNR (non-cancelable, non-returnable) orders help secure supply chain and material commitments.
💰 Fundraising & Capital Structure
Yes- →The company currently has no outstanding draw on its revolver as of the end of the quarter.
- →The credit facility was amended recently, increasing the revolver by $1 billion to $1.75 billion.
- →Terms were improved, including better covenants, interest rates, and extended maturities to 2031.
- →With the upsized revolver and cash balance, the company has over $2 billion in available liquidity.
- →The company states this liquidity is sufficient to meet current operating needs.
- →Management is disciplined on capital allocation and free cash flow focused but has no hesitation to invest or raise funds if required to support growth.
- →No specific plans for immediate debt or equity fundraising were indicated, but capacity to raise funds exists if needed as the outlook for 2027 solidifies.
📋 Order Book & Pipeline
Yes- →The company has a very strong and growing demand pipeline with new program wins bolstering the networking demand into 2027 and 2028.
- →Long-term visibility and unprecedented demand are supported by long lead times and NCNR (non-cancelable, non-returnable) contractual terms with customers.
- →There is a significant order book from major customers in capital equipment, signaling a strong cycle in ATS segment.
- →Multiple 1.6T switch programs are ramping in late 2026 and early 2027, with mass production for large digital native rack scale and CPO Ethernet switch programs starting in 2027.
- →Strong order commitments underpin capacity expansions in Southeast Asia (Thailand) and Texas, aligned with customer growth.
- →Elevated capital expenditure of approximately $1.5 billion projected for 2027 to support new wins and capacity.
- →Inventory increased to support CCS segment growth; cash balance and revolver capacity provide strong liquidity to support order fulfillment.
Key Metrics
Revenue
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Capex
Fundraise
Order Book
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Frequently Asked Questions
What were Celestica Inc. Q2 FY26 results?
- Revenue outlook for 2026 raised from $17B to $19B, representing 53% growth. - 2026 Outlook: - Revenue raised from $17 billion to $19 billion, a 53% increase.
What is Celestica Inc. share price analysis?
Celestica Inc. currently shows a strong growth signal based on ranking data. The stock trades at a P/E of 45.1 with a market cap of $40,358. Investors should review the full earnings analysis for detailed insights.
Is Celestica Inc. planning capital expenditure?
- Capital expenditures (CapEx) for 2026 are planned at approximately $1 billion.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.