Key Highlights

  • Celestica (NYSE:CLS) reported third quarter 2026 revenue of USD 5.83 billion on October 26, 2026, up 83%, and adjusted EPS of USD 3.30, up 109%, against a USD 2.96 consensus.
  • Communications and cloud solutions revenue grew 102% to USD 4.87 billion at an 8.9% segment margin, while advanced technology solutions revenue grew 23% to USD 0.96 billion.
  • The company raised 2026 revenue guidance to USD 21.0 billion and adjusted EPS to USD 11.55, but cut its free cash flow outlook to USD 460 million from USD 600 million.
  • Celestica (NYSE:CLS) introduced a 2027 outlook of revenue of USD 40.0 billion, adjusted EPS of USD 21.50 and an adjusted operating margin of 9.0%, with an investor day on October 27, 2026.

What Celestica Reported

Celestica reported GAAP revenue of USD 5,829.7 million against USD 3.19 billion a year earlier and adjusted EPS of USD 3.30 against USD 1.58. GAAP diluted EPS was USD 3.26 and adjusted operating margin was 8.5%, up from 7.6%. Free cash flow was USD 127.5 million, small against revenue of this size. Chief Executive Rob Mionis said strong momentum continued in the third quarter. The beat came mainly from the communications and cloud solutions segment, which serves AI data center customers and reached an 8.9% margin. Segment revenue was USD 4.87 billion, so it supplied about 84% of the USD 5.83 billion total, simple arithmetic, which shows how concentrated the growth is in one business line.

The 2027 Outlook

The initial 2027 outlook is the headline. Revenue of USD 40.0 billion would be about 90% above the 2026 guidance of USD 21.0 billion, simple arithmetic, with adjusted EPS of USD 21.50 and a 9.0% adjusted operating margin. Capital expenditure is planned at USD 1.5 billion to USD 2.0 billion. The fourth quarter outlook calls for revenue of USD 6.275 billion to USD 6.575 billion and adjusted EPS of USD 3.37 to 3.57. Full-year 2026 adjusted EPS guidance rose to USD 11.55 from USD 11.30, and the 2026 margin guidance of 8.4% is unchanged. Advanced technology solutions grew 23% to USD 0.96 billion with a segment margin of 6.6%, up from 5.5%, so the second segment also improved.

Cash Flow and Risks

The cut in the 2026 free cash flow outlook to USD 460 million from USD 600 million is the notable counterweight, and the release does not make clear whether capital spending or working capital drives it. Rapid growth normally requires funding inventory and receivables, which absorbs cash. Risks include dependence on a small group of hyperscale customers, margin of only 9.0% on a very large revenue base, and the execution risk in doubling sales within a year. Management will present the plan in more detail at the investor day on October 27, 2026, starting at 8:00 a.m. ET. Investors will look for detail on customer commitments, capacity additions and how the company funds a capital budget of USD 1.5 billion to USD 2.0 billion in 2027.

Where Things Stand

Celestica guided to USD 40.0 billion in 2027 revenue because demand from AI data center customers is growing fast and the company expects to scale its cloud solutions business sharply. That answers the headline, but the outlook is a management projection, not a result. Celestica (NYSE:CLS) also cut its 2026 free cash flow outlook, and doubling revenue brings execution, customer concentration and working-capital risks, so the investor day detail will matter.