Celestica Posts Record $5.83 Billion in Revenue, Up 83%, and Issues 2027 Outlook
Key Facts
Celestica reported revenue of $5.83 billion for the quarter ended September 30, 2026, up 83% from $3.19 billion in the same period of 2025 and above the high end of its previous range of $5.55 billion. The company said adjusted EPS reached $3.30, compared with $1.58 a year earlier, a 109% increase, also exceeding the high end of its guidance. The results reflect the company’s rapid expansion, with performance varying between its two segments and adjusted operating margin improving. Chief Executive Rob Mionis described the 8.5% adjusted margin as "a new record level for the company." The company also issued an initial 2027 revenue outlook of $40.0 billion, without describing it as an increase from a previous target.
Most of the growth came from the Connectivity & Cloud Solutions segment, which reported revenue of $4.87 billion, up 102% year over year. The segment’s margin rose to 8.9% from 8.3% in the third quarter of 2025, indicating improved profitability alongside higher revenue. Advanced Technology Solutions reported revenue of $960 million, up 23% year over year. Its margin increased to 6.6% from 5.5% a year earlier. The divergence puts Connectivity & Cloud Solutions at the forefront of quarterly growth, while the other segment posted slower growth and an improved margin.
In its computing and storage business, the company said growth in Compute & Storage was linked to higher AI computing volumes at hyperscale cloud providers, alongside strength in storage programs. Revenue from this activity represents about 28% of the company’s total revenue, according to its table, rather than 28% of Connectivity & Cloud Solutions revenue. The company also tied its initial 2027 outlook to what it described as a strong demand environment. It said customer demand expectations for 2028 are materially higher than the annual revenue outlook it set for the company in 2027. The statement offers an indication of the breadth of demand underpinning management’s planning, without turning the 2027 outlook into a previously revised target.
Celestica expects revenue of $40.0 billion in 2027, up 90%, with adjusted EPS of $21.50 and an adjusted operating margin of 9.0%. This remains a new initial outlook, not an announcement of an increase from a previous level. For 2026, the company raised its revenue outlook to $21.0 billion from $20.5 billion and adjusted EPS to $11.55 from $11.30. By contrast, it cut its adjusted free cash flow outlook to $460 million from $600 million. The company attributed the reduction mainly to targeted working capital investments to support accelerating growth in 2027.
Adjusted operating margin was 8.5% in the third quarter, compared with 7.6% a year earlier, while GAAP operating margin declined to 7.9% from 10.2%. The comparison highlights the different directions of the two measures during the period, even as management described the adjusted margin as a record. The company plans capital expenditures of between $1.5 billion and $2.0 billion in 2027 to support its investments and multiyear growth. That means the expansion outlook comes with substantial capital spending, alongside the working capital needs the company cited in explaining its lower 2026 free cash flow outlook.
For the fourth quarter of 2026, the company set a revenue range of between $6.275 billion and $6.575 billion and adjusted EPS of between $3.37 and $3.57. It also said it intends to file a notice with the Toronto Stock Exchange during the fourth quarter to launch a new share repurchase program after the current program ends on November 2, 2026. If the exchange accepts the notice, the program could allow the company to repurchase up to 2.5% of its public float during the 12 months following acceptance. CLS shares closed at $276.54 on October 27, 2026. Fourth-quarter guidance is the company’s next operating milestone after results topped its previous range, while the proposed buyback program is contingent on the current program ending and exchange approval.