Celestica Beats Q3 Expectations, Raises 2026 Outlook, and Guides to $40B Revenue in 2027

Overview of Filing

On October 26, 2026, Celestica Inc. (NYSE: CLS, TSX: CLS) filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition), furnishing its press release (Exhibit 99.1) detailing third-quarter 2026 financial results, fourth-quarter 2026 guidance, an upgraded full-year 2026 outlook, and preliminary 2027 annual guidance.

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Key Financial Highlights

Q3 2026 Performance vs. Guidance

• Revenue: $5.83 billion, up 83% YoY compared to $3.19 billion in Q3 2025, exceeding the guidance range of $5.25 billion to $5.55 billion.
• Adjusted EPS (Non-GAAP): $3.30, up 109% YoY compared to $1.58 in Q3 2025, topping the guidance range of $2.88 to $3.08.
• GAAP EPS: $3.26 compared to $2.31 in Q3 2025.
• Adjusted Operating Margin (Non-GAAP): 8.5%, expanding 90 bps YoY (up from 7.6% in Q3 2025) and beating guidance midpoint of 8.4%.
• Segment Breakdown:
  • Connectivity & Cloud Solutions (CCS): Revenue reached $4.87 billion (+102% YoY) with segment margin improving to 8.9% (vs. 8.3% in Q3 2025). Hardware Platform Solutions revenue grew 70% YoY to ~$2.3 billion.
  • Advanced Technology Solutions (ATS): Revenue reached $0.96 billion (+23% YoY) with segment margin of 6.6% (vs. 5.5% in Q3 2025).

Q4 2026 Guidance

• Revenue: $6.275 billion to $6.575 billion.
• Adjusted EPS (Non-GAAP): $3.37 to $3.57.
• Adjusted Operating Margin: Expected to be ~8.7% at mid-point.

Full-Year 2026 Outlook Raised

• Revenue: Raised to $21.0 billion (from $20.5 billion), representing 69% YoY growth.
• Adjusted EPS: Raised to $11.55 (from $11.30), representing 91% YoY growth.
• Free Cash Flow: Revised to $460 million (from $600 million) to fund working capital investments required for accelerating 2027 demand.
• Adjusted Operating Margin: Reaffirmed at 8.4%.

2027 Outlook & Multi-Year AI Tailwinds

• Revenue: Estimated at $40.0 billion, representing 90% YoY growth.
• Adjusted EPS: Forecasted at $21.50.
• Adjusted Operating Margin: Expected to reach 9.0%.
• Capital Expenditures: Forecasted between $1.5 billion and $2.0 billion.
• Long-Term Demand: Management noted strong customer demand forecasts for 2028 that are meaningfully higher than 2027 projections, driven by hyperscaler AI infrastructure deployments.

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Capital Allocation & Share Repurchases

• New NCIB Program: Celestica plans to file an intention with the TSX to initiate a new Normal Course Issuer Bid (NCIB) in Q4 2026 following the expiration of its current program on November 2, 2026, authorizing the repurchase of up to 2.5% of its public float.
• Recent Offering: Successfully closed a public offering on August 7, 2026, generating $3.45 billion in aggregate gross proceeds (11.1 million common shares).