Celestica Raises 2026 Revenue Outlook to $19 B and EPS to $10.15 After Q1 Results
Celestica reported Q1 revenue of over $4 billion and record 8% adjusted operating margin, driving a raised full-year 2026 revenue outlook from $17 billion to $19 billion and adjusted EPS guidance from $8.75 to $10.15. The CCS segment is expected to grow 70% in 2026 amid strong data-center and hyperscaler demand, though component cost pressures and lead-time constraints remain risks.
1. Q1 Results and Margin Expansion
Celestica delivered Q1 2026 revenue above $4 billion and an 8% adjusted operating margin, marking a company record. Adjusted EPS came in at $2.16, exceeding the high end of guidance and reflecting strong execution despite cost headwinds in memory and silicon.
2. Upgraded 2026 Outlook
Management raised full-year 2026 revenue guidance by 18% to $19 billion and boosted adjusted EPS range to $8.75–$10.15, up from prior guidance. Free cash flow guidance remains at $500 million, unchanged from previous forecast.
3. CCS Segment and Backlog Strength
The communications, cloud, and services (CCS) segment is projected to grow 70% in 2026, driven by data-center and hyperscaler orders. A robust awarded backlog and pipeline across networking, AI/ML compute, and co-packaged optics wins underpin medium-term demand visibility.
4. Operational Risks and Supply Pressures
Extended lead times and rising memory and custom silicon costs pose execution and margin risks. Component shortages could delay program ramps and revenue recognition, requiring precise capacity management to align with customer demand.