Celestica Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.29%.
Did CLS Beat Earnings? Q1 2026 Results
Celestica Inc. delivered a strong first quarter for fiscal 2026, posting adjusted EPS of $2.16 and beating the $2.08 consensus estimate by 3.84%, marking the company's fourth consecutive quarter of topping EPS expectations. Revenue came in at $4.05 billion, essentially in line with estimates and up 52.8% year-over-year, as the Connectivity & Cloud Solutions segment, which grew 76% to $3.24 billion, served as the clear engine of that expansion. Adjusted operating margin widened to 8.0% from 7.1% a year ago, while GAAP net earnings more than doubled to $212.30 million from $86.20 million, reflecting meaningful operating leverage and a favorable profit mix. The momentum has also prompted a substantial lift to the full-year outlook, with management raising its 2026 revenue target to $19.00 billion from $17.00 billion and adjusted EPS guidance to $10.15 from $8.75; a recently announced Co-packaged Optics Ethernet switch program win with a hyperscaler customer further supports the view that 2027 could bring even stronger growth.
- 76% year-over-year CCS segment revenue growth driven by accelerating hyperscaler and data center demand
- Hardware Platform Solutions revenue grew 63% year-over-year to approximately $1.7 billion
- Adjusted operating margin expanded to 8.0% from 7.1% due to more favorable mix than anticipated
- CCS segment margin improved to 8.6% from 8.0%
- ATS segment margin improved to 6.0% from 5.0% despite flat revenue
- Adjusted effective tax rate of 19% lower than anticipated 21% due to favorable profit mix
“Celestica delivered a strong first quarter to begin 2026, achieving revenue of $4.05 billion and adjusted EPS (non-GAAP)* of $2.16. Our solid results included adjusted operating margin* of 8.0%, a new milestone for the company.”
Celestica CEO, on the earnings call
Forward Guidance & Outlook
Celestica raised its 2026 annual outlook significantly: revenue now expected at $19.0 billion (up from $17.0 billion), adjusted EPS (non-GAAP) of $10.15 (up from $8.75), and adjusted operating margin of 8.1% (up from 7.8%). Free cash flow outlook remains at $500 million. For Q2 2026, guidance calls for revenue of $4.15 to $4.45 billion, adjusted operating margin of 8.0% at the mid-point, and adjusted EPS of $2.14 to $2.34. The company expects to grow revenue by more than $6.5 billion in 2026 and expects significantly more revenue growth in 2027 due to improved visibility and new program wins.
CLS YoY Financials
CLS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.