Celestica Posts $5.83 Billion Quarter and 2027 Revenue Outlook

The Tip Desk · October 27, 2026 · 3 min read

Third-quarter revenue rose 83% to $5.83 billion, and the company now expects 2027 sales of $40.0 billion, up 90%.

Celestica Inc. (CLS), a global provider of data center infrastructure and advanced technology solutions, reported third-quarter revenue of $5.83 billion, up 83% from $3.19 billion a year earlier, as year-over-year growth accelerated from 62% in the second quarter and 53% in the first.

The result exceeded the high end of the $5.25 billion to $5.55 billion range the company had issued in July. Adjusted earnings of $3.30 a share (non-GAAP) also cleared the $2.88 to $3.08 guidance range, and adjusted operating margin of 8.5% topped the 8.4% mid-point guide. The company said revenue beat the high end because of higher-than-anticipated customer demand and operational execution, and that stronger-than-anticipated operating leverage lifted the margin.

GAAP earnings were $3.26 a share, compared with $2.31 a year earlier. GAAP earnings from operations as a percentage of revenue were 7.9%. Adjusted EPS was up 109% from $1.58 a year earlier.

Connectivity & Cloud Solutions, the larger of the two reportable segments, generated $4.87 billion of revenue, up 102% from a year earlier, with segment margin of 8.9% versus 8.3%. Hardware Platform Solutions revenue was approximately $2.3 billion, up 70%. Advanced Technology Solutions revenue was $0.96 billion, up 23%, with segment margin of 6.6% versus 5.5%. Effective in the third quarter the company renamed Communications to Networking and Enterprise to Compute & Storage within CCS, saying the change does not affect segment reporting or previously reported results.

Chair and Chief Executive Rob Mionis said the company is well-positioned to support leading hyperscalers and frontier AI labs through an ongoing AI infrastructure supercycle, and that the demand environment continues to strengthen.

Celestica raised its 2026 annual outlook to revenue of $21.0 billion from $20.5 billion and adjusted EPS of $11.55 from $11.30, citing strong third-quarter results and expected demand improvements in the fourth quarter. The adjusted operating margin outlook of 8.4% was unchanged. Free cash flow (non-GAAP) was cut to $460 million from $600 million, which the company said is primarily driven by targeted working-capital investments to support accelerating growth in 2027.

For the first time, the company provided a 2027 annual outlook: revenue of $40.0 billion, up 90%, adjusted EPS of $21.50, adjusted operating margin of 9.0%, and capital expenditures of $1.5 billion to $2.0 billion. It said 2028 customer demand forecasts are meaningfully higher than the 2027 revenue outlook.

Fourth-quarter 2026 guidance is revenue of $6.275 billion to $6.575 billion, adjusted operating margin of 8.7% at the mid-point, and adjusted EPS of $3.37 to $3.57.

The company completed a public offering for aggregate gross proceeds of $3.45 billion, issuing 11.1 million common shares on August 7, 2026. It said it intends to file a notice of intention with the Toronto Stock Exchange to commence a new normal course issuer bid in the fourth quarter after the current program expires on November 2, 2026, which would permit repurchase of up to 2.5% of public float.

Management will host a results conference call and 2026 Investor and Analyst Day on October 27, 2026.