$40 billion. That is the market capitalization of Celestica (NYSE:CLS | CLS Price Prediction), a company that raised its revenue guidance from $17.0 billion to $19 billion recently (now trading right around 2-times sales).
This move came alongside the company’s Q1 2026 report on April 27, 2026. Management now expects to add more than $6.5 billion in revenue this year. This is guidance, so take what you will from these numbers. However, this figure came with a matching lift to full-year adjusted EPS guidance to $10.15 from $8.75.
What It Means
A $2.0 billion mid-year raise on a company this size is a scale event. It is what a business looks like when hyperscaler demand converts into signed backlog faster than the model expected. In Q1 alone, revenue hit $4.05 billion, up 52.8% year over year, with adjusted EPS of $2.16 beating the $2.0802 estimate, the fourth consecutive quarter of topping expectations.
The growth mix underneath the number is what makes the guide credible. Celestica’s Connectivity and Cloud Solutions segment produced $3.24 billion in revenue, up 76% year over year, at an 8.6% segment margin. Hardware Platform Solutions inside CCS reached $1.7 billion, up 63%. Adjusted operating margin widened to 8.0% from 7.1%, and GAAP net earnings more than doubled to $212.3 million from $86.2 million. Additionally, operating cash flow rose 173.45% year over year to $356.3 million.
To me, it’s clear that Celestica’s revenue is scaling, but more importantly profitability is scaling with it.
Market Reaction
Celestica stock has not rewarded the guide. Shares closed at $336.21 on July 2, 2026, down from the $413 filing price. Over the past month, CLS is down 28.83%, and over the past week it has fallen 6.97%. Zoom out and the picture flips: year to date the stock is up 13.73% against SPY’s 9.22%, and over one year CLS is up 117.05% versus SPY’s 20.04%. The recent pullback has compressed the multiple even as the top-line trajectory has expanded.
Bull Case
Let’s start with the valuation math the market seems to be ignoring. Celestica’s management team has put forward guidance that calls for $19.0 billion in 2026 revenue and $10.15 in adjusted EPS. At a $336.21 share price and a market cap near $38.66 billion, the equity is priced at roughly two times forward guided revenue. Forward P/E sits at 36, a number that shrinks quickly if the EPS ramp holds.
The demand story behind the guide is durable. Celestica stock is expected to grow approximately 70% for full-year 2026. Q2 guidance already implies 49% revenue growth and 61% EPS growth at the midpoint. CEO Rob Mionis told analysts that “our awarded backlog and the opportunity pipeline with both existing and new customers are the strongest they have ever been during my tenure as CEO.”
The 2027 setup adds another leg. Celestica landed a 1.6 Terabit co-packaged optics Ethernet switch program with a hyperscaler customer, with mass production slated for the second half of 2027. Ten 1.6T switch programs are already active, and management is booking awards that ship into 2028. The company amended its credit facility to a revolver of $1.75 billion with maturity extended to April 2031, funding capacity for a roughly $1 billion 2026 capex plan plus a $1.5 billion placeholder for 2027.
Bottom Line
Celestica is guiding to $19.0 billion in revenue and $10.15 in adjusted EPS for 2026, while its share price sits well below the April filing level. For long-term holders, the disconnect between a raised forward revenue base and a compressed market cap is the story.
Now, there are real risks for investors to consider. Currently, three customers account for 35%, 15%, and 15% of Q1 revenue. On top of this, supply chains for custom silicon, memory, 40-plus layer PCBs, power, and optical components remain on allocation.
The next test comes with Celestica’s upcoming Q2 2026 earnings (expected late July), where guidance calls for revenue of $4.15 billion to $4.45 billion and adjusted EPS of $2.14 to $2.34. If Celestica delivers inside that range, the $19 billion number stops being a guide and starts being a floor.
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