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Celestica Posts Blowout Q2 and Raises 2026 Targets as AI Rack Demand Outpaces Supply

Hyperscale AI orders driven by partnerships with OpenAI, Broadcom and AMD are creating growth that outstrips available materials.

Overview

  • Celestica reported Q2 revenue of $4.70 billion and adjusted EPS of $2.54 in results released Tuesday, delivering a record 8.2% adjusted operating margin.
  • The company raised full-year 2026 revenue guidance to $20.5 billion and boosted adjusted EPS to $11.30 while lifting its margin and free-cash-flow targets.
  • Management said demand is powered by AI infrastructure, with custom accelerator racks, 800G/1.6T networking and cloud compute programs as the key drivers and announced collaborations with OpenAI, Broadcom and work tied to AMD’s Helios.
  • Executives warned that materials availability, not customer demand, is the binding constraint and outlined roughly $1.0 billion of capital spending for 2026 plus a $1.5 billion placeholder for 2027 to add capacity.
  • The quarter shows stronger cash generation and operating leverage and suggests faster revenue acceleration into 2027 if Celestica can secure components and execute its capacity plan, a dynamic investors will monitor through supply and delivery schedules.