Celestica Announces First Quarter 2026 Financial Results

• Celestica reported Q1 2026 revenue of $4.05 billion, a 53% year-over-year increase.
• Adjusted EPS (non-GAAP) was $2.16, exceeding the high end of previous guidance ($2.15).
• Full-year 2026 revenue guidance raised to $19.0 billion from $17.0 billion.
• Full-year 2026 adjusted EPS guidance raised to $10.15 from $8.75.
• Adjusted operating margin reached a new milestone of 8.0%, up from 7.1% in Q1 2025.
• Connectivity & Cloud Solutions (CCS) segment revenue grew 76% YoY to $3.24 billion.
• New program win awarded for Co-packaged Optics (CPO) Ethernet switch for a hyperscaler, production ramp expected in 2027.
• Credit facility upsized to approximately $2.5 billion, extending revolver maturity to April 2031.

• The Q1 results confirm the acceleration of the AI infrastructure cycle previously hinted at in late 2025 announcements (AMD Helios collaboration, 1.6TbE switches).
• Revenue growth of 53% is exceptional for a company of this size ($64B+ market cap), indicating strong demand elasticity and pricing power in the CCS segment.
• Margin expansion to 8.0% is critical; it suggests operational leverage is kicking in, countering typical EMS margin compression risks.
• The guidance raise is substantial ($2 billion revenue increase), reducing downside risk for the remainder of the year.
• However, the EPS beat was marginal ($2.16 vs $2.15 high end), suggesting some cost pressures remain despite top-line growth.
• The CPO program win is a strategic long-term catalyst (2027 ramp) but does not impact immediate 2026 cash flows significantly.
• Upsizing the credit facility provides liquidity safety, mitigating short-term capital raise risks during this expansion phase.

• Celestica is a global provider of technology manufacturing services, focusing on Connectivity & Cloud Solutions (CCS) and Advanced Technology Solutions (ATS).
• Flagship Project: AI Infrastructure Manufacturing. This includes the "Helios" rack-scale platform with AMD (announced March 2026) and the new CPO Ethernet switch program for hyperscalers.
• Development Status: CCS segment is driving growth (76% YoY in Q1 2026), while ATS remains flat. The company is transitioning from a traditional EMS to an AI infrastructure partner.