Celestica earnings rose in the third quarter of 2026, with revenue climbing 83% to $5.83 billion. The company also forecast $40.0 billion in revenue for 2027 while cutting its 2026 free cash flow outlook.

Key Takeaways

  • Third-quarter adjusted earnings per share rose to $3.30 from $1.58 a year earlier.
  • Celestica raised its 2026 revenue forecast to $21.0 billion but lowered its free cash flow outlook to $460 million.
  • The shares closed down 5.14% on October 26 before the results were released, then traded higher after hours.

Celestica earnings and margins

Revenue rose from $3.19 billion a year earlier in the quarter ended September 30. GAAP earnings per share increased to $3.26 from $2.31, while adjusted earnings per share climbed 109%.

The company’s two operating margin measures moved in different directions. Adjusted operating margin rose to 8.5% from 7.6%, but GAAP operating margin declined to 7.9% from 10.2%. Net earnings increased to $397.2 million from $267.8 million.

ItemDetails
2026 revenue guidance$21.0 billion, raised from $20.5 billion
2026 adjusted EPS guidance$11.55, raised from $11.30
2026 free cash flow guidance$460 million, reduced from $600 million
2027 revenue guidance$40.0 billion

Revenue outlook rises as cash forecast falls

Celestica raised its full-year 2026 revenue and adjusted earnings forecasts, but cut its free cash flow outlook to fund working capital. Those figures are guidance, not completed results.

For 2027, the company forecast revenue of $40.0 billion, adjusted operating margin of 9.0% and adjusted earnings per share of $21.50. It also projected capital spending of $1.5 billion to $2.0 billion.

For the fourth quarter of 2026, Celestica guided for revenue of $6.275 billion to $6.575 billion and adjusted earnings per share of $3.37 to $3.57.

Customer concentration and hardware revenue

Hardware Platform Solutions generated about $2.3 billion in third-quarter revenue, up 70% and representing 40% of the company’s total. The filing attributed the activity to program ramps across multiple hyperscaler customers.

Three customers in Celestica’s Connectivity & Cloud Solutions business accounted for 35%, 17% and 14% of company revenue. The filing did not name them; the top 10 customers together represented 85% of revenue.

Shares trade higher after the release

Celestica shares closed at $246.65 on October 26, down $13.36 from the previous session. That regular-session close came before the company released its results.

A later after-hours price was $288.07, while a premarket snapshot at 6:39 a.m. Eastern on October 27 showed $288.202. Neither price was the official October 26 closing price.

Next milestone

Celestica scheduled its results call and investor day for October 27 at 8:00 a.m. Eastern.

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