Shares of Celestica Inc. (NYSE: CLS) surged 14.51% in pre-market trading on Tuesday, following the company's impressive second-quarter earnings report and significantly raised full-year guidance. The electronic manufacturing services provider delivered results that substantially exceeded analyst expectations across key financial metrics.

For the quarter ended June 30, Celestica reported adjusted earnings per share of $1.39, handily beating the analyst consensus estimate of $1.22 by 13.93%. This represents a substantial 54% year-over-year increase from $0.90 per share in Q2 2024. Revenue for the quarter reached $2.89 billion, surpassing analyst expectations of $2.65 billion and marking a 21% increase compared to the same period last year. The company's adjusted operating margin hit a record 7.4%, while free cash flow grew 83% year-over-year to $119.9 million.

Celestica's strong performance was driven by robust growth in its Connectivity & Cloud Solutions (CCS) segment, which saw revenue increase by 28% year-over-year. Within CCS, Hardware Platform Solutions revenue surged 82% to approximately $1.2 billion, fueled by continued demand for data center hardware, particularly networking switches for artificial intelligence and machine learning applications. In light of its strong first-half results and a strengthening demand outlook from CCS customers, Celestica raised its full-year 2025 guidance. The company now expects revenue to reach $11.55 billion, up from the prior forecast of $10.85 billion. Adjusted earnings per share for 2025 are now projected at $5.50, increased from the previous estimate of $5.00. Celestica's ability to navigate supply chain challenges and capitalize on growing demand in key markets, particularly in cloud computing and AI-related hardware, has clearly resonated with investors, leading to the significant pre-market stock price jump.