Celestica Stock Surges as AI Infrastructure Demand Powers Record-Breaking Q2 Performance
Strong Q2 Performance Drives Stock Growth
Celestica has delivered exceptional second-quarter results for 2025, with revenue reaching $2.89 billion, marking a 20.9% year-over-year increase. The company achieved an impressive adjusted EPS of $1.39, representing a 52.75% growth compared to the previous year.
The company’s performance was highlighted by significant margin improvements, with GAAP operating margin at 9.4% and adjusted operating margin at 7.4%. Due to this strong performance and an improved customer demand outlook, Celestica has raised its 2025 guidance, now targeting annual revenue of $11.55 billion, up from the previous estimate of $10.85 billion, and adjusted EPS of $5.50, increased from $5.00.
AI Infrastructure and Market Position
Celestica has established itself as a key enabler in the AI infrastructure buildout, assembling custom hardware for hyperscalers and benefiting from surging AI demand. The company’s CCS segment is rapidly gaining market share among hyperscalers, driven by next-generation product launches and strong positioning in AI/ML networking.
In Q2, the company’s CCS segment revenue grew significantly by 28% to $2.07 billion, with Hardware Platform Solutions revenue surging 82% to $1.2 billion. The ATS segment also showed positive growth, with revenue increasing by 7% to $0.82 billion.
Market Response and Future Outlook
The stock’s performance has been remarkable, with an 80% increase year-to-date and more than tripling in value over the past year. According to analysts, the average rating for CLS stock is “Strong Buy,” with a 12-month price target of $190.7.
Looking ahead to Q3 2025, Celestica projects revenue between $2.875-$3.125 billion and adjusted EPS of $1.37-$1.53, indicating continued momentum in the company’s growth trajectory.
The company’s success is being driven by surging demand for advanced networking and AI among hyperscalers, leading to deeper customer relationships and increased revenue visibility. Additionally, Celestica’s regional manufacturing diversification and shift toward high-margin markets are enhancing its resilience and long-term growth prospects.
