Celestica Q1 2026 Earnings Raise Outlook on AI Demand
Celestica Q1 2026 earnings beat estimates and management raised guidance as AI-driven CCS demand pushed margins and cash flow, though shares had fallen.
KEY TAKEAWAYS
- Q1 revenue rose 53.0% to $4.1B, driven by CCS strength.
- Management raised FY guide to $19.0B and $10.15 adjusted EPS.
- Record adjusted operating margin 8.0% and operating cash flow $356M.
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Celestica Inc. (CLS) reported first-quarter 2026 earnings that exceeded consensus, the company said in a press release on April 27, 2026. AI-driven demand in its Connectivity & Cloud Solutions (CCS) segment fueled revenue growth, a record adjusted operating margin, and stronger operating cash flow, prompting management to raise its full-year outlook.
Quarter Results and Outlook
Celestica posted first-quarter revenue of $4.05 billion, a 53.0% increase year over year that surpassed the $4.0 billion consensus estimate. Adjusted (non-GAAP) earnings per share reached $2.16, topping estimates, while adjusted net earnings rose to $249.5 million. GAAP net earnings were $212.3 million, with diluted GAAP earnings per share of $1.83.
The company achieved a record adjusted operating margin of 8.0%, up from 7.1% a year earlier. Gross margin improved to 10.8% from 10.3%, reflecting a stronger product mix and scale in higher-margin platforms.
The CCS segment drove about 80.0% of incremental revenue growth, with revenue rising roughly 76.0% year over year. Hardware Platform Solutions generated approximately $1.7 billion in revenue, a 63.0% increase that accounted for about 42.0% of total sales. Rob Mionis, president and chief executive officer, said, "We continue to see accelerating growth from our CCS customer base."
Operating cash flow strengthened to $356.3 million, up from $130.3 million in the year-ago quarter. The company held $378.0 million in cash and had $719.3 million in term loans outstanding as of March 31, 2026. It repurchased 0.1 million shares for about $20 million during the quarter.
Management raised its full-year 2026 guidance to $19.0 billion in revenue and $10.15 in adjusted EPS. For the second quarter, it projected revenue between $4.15 billion and $4.45 billion, with adjusted EPS of $2.14 to $2.34. The outlook reflects momentum in CCS, new program wins, and expected continued demand from AI and hyperscaler customers.
The company’s SEC filing for the quarter did not indicate any mergers, acquisitions, regulatory approvals, or other corporate actions related to the results.
