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Celestica Raises 2026 Forecast After Strong Q1 Beat as Shares Fall

A steep pullback points to doubts about how long AI data‑center spending can stay this strong.

Overview

  • Celestica, which posted results late Monday, saw its stock drop about 14% Tuesday even though it beat profit and revenue estimates.
  • Quarterly revenue rose 53% to $4.05 billion, adjusted EPS reached $2.16, and the company reported an 8% adjusted operating margin.
  • The Connectivity and Cloud Solutions unit led results with a 76% jump to $3.24 billion on heavy orders for AI servers and networking gear.
  • Management lifted its 2026 outlook to $19 billion in revenue and $10.15 in adjusted EPS and forecast second‑quarter revenue and EPS above Wall Street views.
  • To capture multi‑year hyperscaler demand, Celestica plans about $1 billion of 2026 spending, expanded its credit facility to $1.75 billion through 2031, and secured a co‑packaged optics Ethernet switch program expected to scale in 2027.