Description

Celestica Raised Full-Year Guidance To $19 Billion But Supply Chain Headwinds Cloud Execution!

Celestica reported first quarter 2026 revenue of $4.05 billion, marking a 53% year-over-year increase and slightly surpassing the midpoint of its guidance range. This growth was primarily driven by strong demand in the Communications & Cloud Solutions (CCS) segment, which accounted for 80% of total revenue with a 76% increase, propelled by ramping programs for 800G networking switches and next-generation AI/ML compute initiatives. The Advanced Technology Solutions (ATS) segment contributed 20% of revenue, remaining flat year-over-year but outperforming guidance, bolstered by higher HealthTech revenue offsetting declines in Aerospace & Defense (A&D) and capital equipment areas. Celestica’s adjusted operating margin reached 8.0%, up 90 basis points, the highest recorded for the company, supporting adjusted EPS of $2.16, which exceeded guidance by a substantial margin and represented an 80% increase year-over-year. Gross margin improved 30 basis points to 11.3%, attributed to better business mix and operational productivity.