Celestica Inc. delivered a blowout Q2 FY25, with a higher-than-usual revenue beat-and-raise. Management's FY25 outlook seems conservative and capex trends by hyperscalers can fuel a continued growth bonanza well into FY26. Celestica's Enterprise sub-segment which until now has been a drag on revenues is expected to see a growth inflection over the next few quarters. The higher-margin hardware platform solutions business continues to outgrow other segments, driving structural margin expansion every quarter. There are no signs of this stopping just yet.
Amazon reports Q2 2025 earnings on July 31, aiming to beat expectations for the 10th straight quarter amid strong tech sector results. While Amazon is best known for its e-commerce business, the company is increasingly reshaping the AI sector through AWS and investments in the industry. Celestica, a key AI infrastructure partner to AWS, posted its largest quarterly beat in two years and raised 2025 revenue and EPS guidance, surging 10% in the post-market.
Investors looking for a momentum stock that could be in store for higher highs may want to consider Celestica (CLS), while those looking for a buy-the-dip target have an intriguing option with Exelixis (EXEL).
Celestica Inc. (NYSE:CLS ) Q2 2025 Earnings Conference Call July 29, 2025 8:00 AM ET Company Participants Mandeep Chawla - Chief Financial Officer Matthew P. - Corporate Participant Robert Andrew Mionis - President, CEO & Director Conference Call Participants Atif Malik - Citigroup Inc., Research Division David Vogt - UBS Investment Bank, Research Division Karl Ackerman - BNP Paribas Exane, Research Division Paul Michael Treiber - RBC Capital Markets, Research Division Robert Young - Canaccord Genuity Corp., Research Division Ruben Roy - Stifel, Nicolaus & Company, Incorporated, Research Division Samik Chatterjee - JPMorgan Chase & Co, Research Division Thanos Moschopoulos - BMO Capital Markets Equity Research Todd Adair Coupland - CIBC Capital Markets, Research Division Operator Ladies and gentlemen, thank you for joining us, and welcome to the Celestica Q2 2025 Financial Results and Conference Call.
AI-driven CapEx surges from big tech are fueling Celestica Inc.'s explosive growth, with a stellar beat-and-raise quarter driving the stock to new highs. Celestica's CCS segment is thriving due to robust hyperscaler demand and high-speed interconnectivity ramp-ups. Valuation is now extremely stretched, with CLS trading at over 24x forward EBITDA amidst significant customer concentration risk, warranting caution.
CLS tops Q2 estimates with 21% revenue growth and raises 2025 guidance, fueled by CCS demand and free cash flow strength.
Celestica Q2: Blowout Earnings Restore Bullish Case
Celestica (NYSE:CLS) has recently been experiencing significant growth — the stock has risen 80% year-to-date and has more than tripled in value over the past year. What factors are contributing to this increase?
Celestica (CLS) came out with quarterly earnings of $1.39 per share, beating the Zacks Consensus Estimate of $1.24 per share. This compares to earnings of $0.91 per share a year ago.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
The latest trading day saw Celestica (CLS) settling at $163.98, representing a -2.85% change from its previous close.
From a technical perspective, Celestica (CLS) is looking like an interesting pick, as it just reached a key level of support. CLS recently overtook the 20-day moving average, and this suggests a short-term bullish trend.