Celestica

Celestica just reported first quarter 2026 revenue of 4.05 billion dollars, up 53% from a year ago. Their CCS segment, which serves hyperscalers, grew 76% year over year and the Hardware Platform Solutions business grew 63%. Adjusted operating margin hit a record 8% and adjusted earnings of 2.16 dollars per share blew past the high end of guidance.

Celestica raised their full year 2026 outlook by 2 billion dollars to 19 billion in revenue and bumped adjusted earnings per share up to 10.15 from 8.75 previously. Total revenue growth in 2026 is now expected to top 6.5 billion dollars, with 2027 expected to grow even faster as customer visibility extends through 2028 thanks to new program wins.

Three customers make up nearly 60% of all revenue. If even one major customer like Google decides to spread their orders to other suppliers, Celestica could feel a real pinch. The risk grew slightly this quarter with 1.6 terabit switch volumes ramping inside a small handful of accounts.

The stock trades at roughly 57 times forward earnings, well above the typical 31 times for electronic component peers. Despite the blowout first quarter and raised guidance, the stock barely moved on the news because expectations were already sky high. Any slowdown in hyperscaler spending or stumble in the 1.6 terabit transition could trigger a sharp pullback.