EARNINGS RESULTS · Q2 2026

Celestica Q2 2026: Revenue Up 62.39%, Operating Margin 9.75%

Results for the quarter ended 2026-06-30 bring the business drivers and cash after investment into focus. Quarterly free cash flow was $0.15 bn. The dated assessment on 2026-10-08 was wait at a reference price of $371.57.

Celestica · CLSPublished October 8, 2026Quarter ended June 30, 2026

Q2 2026: What the Quarter Delivered

Revenue: $4.7 bn
Revenue growth YoY: 62.4%
Operating income: $0.46 bn
Operating margin: 9.8%
Diluted EPS, GAAP: $3.17

Celestica reported $4.7 bn of revenue in Q2 2026. Revenue rose 62.39% from the comparable prior-year quarter. Operating profit was $0.46 bn, with an operating margin of 9.75%. Reported diluted EPS was $3.17.

Celestica’s latest quarter showed that its sales expansion can produce meaningful profit. Revenue rose strongly against the comparable fiscal quarter, while operating profit grew faster and the operating margin improved.

How Revenue Reached Operating Profit

The quarter's revenue and operating result imply an operating margin of 9.75%: $9.75 of operating profit for every $100 of revenue, before interest and tax.

Operating margin measures how much revenue remains as profit after operating costs. Celestica’s latest margin recovered from the preceding quarter and improved against the comparable fiscal quarter, showing that the recent sales ramp has not simply diluted profitability.

What the Reported Earnings Include

Other non-operating income: $0 bn
GAAP net income: $0.37 bn
Diluted weighted-average shares: 0.12 bn shares

Q2 2026 GAAP net income was $0.37 bn. Other non-operating income was $0 bn.

Reported net income strengthened with operating profit. Other non-operating income was not the main explanation, and the diluted share count was broadly stable against the comparable quarter. The earnings improvement therefore rests principally on the business rather than a shrinking share denominator. Reported earnings per share still are not the same as recurring cash available to owners. Our valuation uses subjective operating-earnings assumptions, retains stock compensation, depreciation and amortization as expenses, and makes explicit forward tax and interest assumptions. Those assumptions are not reported tax rates or company guidance.

Cash Left After Investment

Operating cash flow: $1.14 bn
Cash flow after reported cash capital purchases: $0.52 bn
Quarterly operating cash flow: $0.41 bn
Cash purchases of productive assets, including intangibles: $0.26 bn
Quarterly OCF less productive-asset cash purchases: $0.15 bn

In Q2 2026, operating cash flow of $0.41 bn less cash capital expenditure of $0.26 bn left $0.15 bn of free cash flow. Operations funded cash investment and left cash after that spending.

Cash remaining after those reported purchases was positive in the latest quarter and over the trailing period. That supports continued investment without establishing a current funding blocker.

The Verdict Recorded on 2026-10-08

Verdict Invest recorded wait on 2026-10-08, using a reference price of $371.57 dated 2026-10-07. This assessment relates to the Q2 2026 results, with a 12-month horizon and stated validity through 2026-11-07.

Confirmation to watch: Continued communications and enterprise demand supports profitable product ramps.
Confirmation to watch: Consolidated margins hold as revenue expands, showing that growth is not being purchased through weaker pricing.
Confirmation to watch: Operating cash generation strengthens relative to productive-asset purchases without greater reliance on customer deposits.
Risk to this assessment: A major CCS customer reduces orders or pressures pricing enough to weaken consolidated profitability.
Risk to this assessment: Product ramps drive persistent margin deterioration or inventory write-downs.
Risk to this assessment: Investment spending persistently outruns operating cash generation while borrowing needs rise.