Celestica Raises 2026 Revenue Forecast to $21 Billion, Expects 90% Growth in 2027
Key Facts
Celestica reported third-quarter results on October 26, 2026, and raised its annual forecasts, setting 2026 revenue at $21.0 billion, versus a previous forecast of $20.5 billion, and adjusted earnings per share at $11.55, up from $11.30. The company set an initial 2027 target of $40.0 billion in revenue, an increase of 90%, with adjusted earnings per share of $21.50 and an adjusted operating margin of 9.0%. The company said the revision to its 2026 forecasts was driven by strong third-quarter results and expected improvement in demand during the fourth quarter. The target announced for next year reflects a significant acceleration in the revenue trajectory, according to the company’s own forecast. Quarterly results came in above the high end of both previous guidance ranges for revenue and adjusted earnings per share.
Third-quarter revenue reached $5.83 billion, up 83% from $3.19 billion in the same quarter of 2025. Adjusted earnings per share came to $3.30, compared with $1.58 a year earlier. The company’s previous guidance for the period called for revenue of between $5.25 billion and $5.55 billion and adjusted earnings per share of between $2.88 and $3.08, putting both actual figures above the high end of their respective ranges. Celestica said revenue and adjusted earnings per share exceeded the high end of its guidance. The year-over-year comparison highlights broad revenue growth alongside more than a doubling of adjusted earnings per share.
Most of the revenue growth was concentrated in the Connectivity and Cloud Solutions segment, which generated $4.87 billion in third-quarter revenue, up 102% from the same period in 2025. The Advanced Technology Solutions segment recorded revenue of $960 million, up 23% year over year. Adjusted operating margin was 8.5%, compared with 7.6% in the third quarter last year. The chief executive described the margin as "a new record level for the company." The segment figures show that growth rates were uneven, with Connectivity and Cloud Solutions increasing much faster, while adjusted margin also rose from its level a year earlier.
Alongside raising its revenue and earnings forecasts, the company cut its 2026 free cash flow estimate to $460 million from $600 million previously. Celestica attributed the change mainly to targeted working capital investments to support accelerated growth in 2027. The revision comes as it forecasts annual revenue of $21.0 billion and sets a 2027 target of $40.0 billion. The statement presents working capital investment as funding for expected growth and does not link the lower cash flow estimate to faster production. The company also plans capital expenditures of between $1.5 billion and $2.0 billion in 2027, as part of investments it says are intended to support growth over several years.
Celestica says customer demand forecasts for 2028 are clearly higher than its 2027 revenue forecast, signaling that customer needs will continue beyond the targeted growth year. The company’s forecast calls for revenue growth to accelerate to 90% in 2027, with revenue of $40.0 billion. Planned capital spending of between $1.5 billion and $2.0 billion that year is part of investment plans to support this multiyear growth. In the market, CLS shares closed at $299.8 on October 28, 2026. An EL7 headline published on October 29 also cited a 14.4% drop in the stock despite third-quarter results beating earnings estimates. The market move puts the stock’s performance in the context of strong results and raised forecasts, without the disclosure identifying a reason for the decline.