TLDR
- Celestica stock drops 15% despite 53% Q1 revenue growth
- CLS shares fall even as Celestica lifts its 2026 outlook
- Celestica posts strong Q1 results, but stock sells off sharply
- CCS revenue jumps 76% as Celestica raises full-year guidance
- CLS sinks after earnings despite higher margins and EPS growth
Celestica Inc.(CLS) shares reported sharp revenue growth for Q1 2026, yet CLS stock fell 15.35% to $357.40. The stock lost $64.81 during the session, despite stronger earnings and a raised annual outlook. The move showed pressure on the stock after a major run in data center infrastructure demand.
Celestica Posts Strong Q1 2026 Results
Celestica reported Q1 2026 revenue of $4.05 billion, up 53% from $2.65 billion a year earlier. The company benefited from strong demand across data center infrastructure and advanced technology solutions. Moreover, its Connectivity and Cloud Solutions segment remained the key growth driver.
GAAP earnings from operations reached 6.7% of revenue, compared with 4.9% in Q1 2025. Adjusted operating margin rose to 8.0%, up from 7.1% in the prior-year quarter. Besides, Celestica marked a new company milestone with that adjusted margin level.
GAAP diluted EPS increased to $1.83 from $0.74 in Q1 2025. Adjusted EPS rose to $2.16, compared with $1.20 a year earlier. The company repurchased 0.1 million common shares for $20 million during the quarter.
CCS Growth Leads Business Momentum
Celestica’s CCS segment generated $3.24 billion in revenue during Q1 2026. That figure represented 76% growth compared with the same quarter in 2025. Hence, cloud and connectivity demand continued to support the company’s strongest business line.
CCS segment margin reached 8.6%, compared with 8.0% in Q1 2025. Hardware Platform Solutions revenue also rose 63% year-over-year to about $1.7 billion. Celestica showed stronger execution across its higher-growth infrastructure programs.
The ATS segment reported $0.81 billion in revenue, which stayed nearly flat from Q1 2025. However, ATS segment margin improved to 6.0%, compared with 5.0% one year earlier. The segment includes aerospace, defense, industrial, HealthTech, and capital equipment businesses.
Outlook Rises As CLS Stock Sells Off
Celestica raised its 2026 revenue outlook to $19.0 billion from its prior view of $17.0 billion. The company also lifted adjusted EPS guidance to $10.15 from $8.75. Adjusted operating margin guidance increased to 8.1% from 7.8%.
For Q2 2026, Celestica expects revenue between $4.15 billion and $4.45 billion. It also projects adjusted EPS between $2.14 and $2.34 for the quarter. The company expects adjusted operating margin near 8.0% at the midpoint.
The selloff came despite stronger demand visibility and new program wins. Celestica also kept its free cash flow outlook unchanged at $500 million. CLS stock dropped sharply even as the company raised expectations for 2026 and 2027.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
