Toronto, April 28, 2026, 11:01 EDT
- Celestica bumped up its 2026 revenue target to $19.0 billion—up from $17.0 billion—following a 53% jump in first-quarter sales.
- Shares of CLS dropped steeply in New York, underscoring just how demanding expectations are now for suppliers in the AI infrastructure space.
- The cloud and connectivity division—now the key driver for data-center expansion—delivered a 76% jump in revenue.
Celestica Inc. shares slid Tuesday, despite the Toronto electronics maker bumping up its 2026 sales and profit targets. Investors shrugged off another solid quarter fueled by demand for artificial-intelligence infrastructure. New York-listed shares traded down roughly 15% to $357.45, after opening at $382.00, according to market data.
Celestica is drawing attention as more than just a contract manufacturer tied to hardware cycles—it’s now a key supplier in the AI data-center surge. The company bumped its 2026 revenue outlook to $19.0 billion, up $2 billion from its earlier estimate. That revision on Tuesday left some wondering if CLS shares have already baked in an even steeper growth trajectory.
Celestica reported a jump in first-quarter revenue, climbing to $4.05 billion from last year’s $2.65 billion. On a GAAP basis, earnings per share came in at $1.83. Adjusted EPS—which excludes items like stock-based compensation, amortization, and restructuring charges—reached $2.16, well above the $1.20 posted a year ago. CEO Rob Mionis described the company’s 8.0% adjusted operating margin as a “new milestone.” Celestica Inc.
The company has raised its full-year adjusted EPS target—now looking for $10.15, up from $8.75. For the second quarter, revenue is expected somewhere between $4.15 billion and $4.45 billion, with adjusted EPS landing in a $2.14 to $2.34 range. Free cash flow guidance? Still unchanged at $500 million.
Connectivity & Cloud Solutions, or CCS—the Celestica segment for communications gear plus enterprise servers and storage—led the way. Revenue there surged 76%, hitting $3.24 billion. Hardware Platform Solutions followed, up 63% to around $1.7 billion. Advanced Technology Solutions, which covers aerospace, defense, industrial, HealthTech and capital equipment, came in basically unchanged at $810 million, though the margin improved.
Mionis pointed to “accelerating growth” from CCS customers, along with improved profitability across both key business lines. The 2027 outlook, he added, has improved compared to 90 days ago, citing fresh program wins and clearer visibility from customers. Celestica Inc.
Celestica took steps to loosen up its balance sheet, according to a recent filing. On April 27, the company amended its credit agreement, pushing its revolving credit line up to $1.75 billion from $750 million. Celestica also rolled an existing term loan into a fresh $250 million Term A facility, and locked in new maturity dates for both the revolver and Term A loan through April 2031.
This story stretches beyond a single name. Electronics manufacturing-services outfits have been angling for a bigger slice of AI-driven cloud, networking, and data-center projects. Back in January, DigiTimes reported that Celestica and Flex were leaning into platform-led data-center construction, while Sanmina and Jabil were pushing ahead with their own expansion strategies.
Back in December, Jabil projected stronger full-year sales and earnings than analysts expected, betting on AI-fueled demand from data centers. That sets the stage for Celestica’s numbers now, as investors gauge which suppliers are actually converting cloud infrastructure spending into lasting profitability.
Execution remains the sticking point. Celestica raised its revenue guidance, but didn’t lift its free-cash-flow outlook. In its filing, the company cautioned there’s no guarantee it will be able to refinance upcoming obligations on attractive terms. On top of that, Celestica signaled a possible need to raise additional capital for capex, deals, or other investments.
Right now, the numbers show demand is solid. But the stock tells its own story: following an extended AI-fueled run, Celestica faces the challenge of outpacing a market that’s stopped reacting to rapid growth.
