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Celestica Shares Sink Despite Earnings Beat and Higher 2026 Outlook

The selloff reflects profit-taking after a steep run that set a tougher bar for the AI hardware supplier.

A man walks during the opening of a Google AI-Centre in Berlin on March 5, 2026. Google opens an AI centre in Berlin, the latest sign of Europe's deepening reliance on US firms in cutting edge technologies despite the continent's stated aim to catch up with its rivals. Germany's ministry for digital affairs told AFP the centre will bring together cloud computing and data infrastructure, "AI development" operations as well as a space for cooperation between start-ups and research centres. (Photo by Tobias SCHWARZ / AFP via Getty Images)
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Celestica secured a co-packaged optics switch win with a hyperscaler, positioning the company for faster, more efficient AI data center networking starting in 2027.

Overview

  • Celestica shares fell about 15% Tuesday, even after a first-quarter beat and raised guidance.
  • The company reported $4.05 billion in revenue and adjusted EPS of $2.16 for Q1, up 53% year over year with an 8.0% operating margin.
  • Management guided Q2 revenue to $4.15–$4.45 billion and adjusted EPS to $2.14–$2.34, and lifted full-year targets to $19 billion in revenue and $10.15 in adjusted EPS.
  • To add capacity, Celestica plans about $1 billion of 2026 spending, increased its credit facility to $1.75 billion with maturities to April 2031, and canceled $20 million of shares.
  • Celestica is expanding in AI data centers, including a hyperscaler win for a co‑packaged optics Ethernet switch that integrates optics into the switch and is expected to scale in 2027.