Praise be to Allah.
There is nothing wrong with giving a feast on the occasion of the circumcision of a baby boy, as an expression of joy and happiness, and acknowledging the blessing and bounty of Allah, may He be exalted.
Ibn Qudaamah (may Allah have mercy on him) said in al-Mughni (7/286):
The ruling on inviting people – other than for a wedding feast – such as on the occasion of a circumcision and other invitations is that it is mustahabb (encouraged), because of what it involves of feeding people, and accepting such an invitation is mustahabb, but not obligatory.
This is the view of Maalik and ash-Shaafa‘i, and of Abu Haneefah and his companions.
Accepting the invitation of everyone who invites one is mustahabb, because it gladdens the heart of the one who issues the invitation and makes him happy. (Imam) Ahmad was invited to a circumcision feast, and he accepted the invitation and ate the food that was offered.
With regard to the one who offers this feast and invites people, there is no particular virtue in doing so, because there are no Islamic texts to that effect. Rather it comes under the heading of invitations for no particular purpose. If the one who does that intends thereby to show gratitude for the blessing that Allah has bestowed upon him, and to offer food to his brethren, and give food, then he will have the reward for that, in sha Allah. End quote.
The scholars of the Standing Committee said:
Expressing joy and happiness on the occasion of a circumcision is something that is required according to Islamic teaching, because circumcision is something that is prescribed in Islam. Allah, may He be glorified, says (interpretation of the meaning):
“Say: ‘In the Bounty of Allah, and in His Mercy (i.e. Islam and the Quran); -therein let them rejoice.’ That is better than what (the wealth) they amass”
Circumcision comes under the heading of the bounty and mercy of Allah, and there is nothing wrong with making food on this occasion, as an expression of gratitude to Allah for that.
End quote from Fataawa al-Lajnah ad-Daa’imah (5/142)
And Allah knows best.