Celestica (CLS) Q3 2026 Earnings
How Did CLS Stock React to Q3 2026 Earnings?
Did CLS Beat Earnings? Q3 2026 Results
Yes. Celestica reported Q3 2026 earnings of $3.30 a share on Oct 26, 2026, beating the $2.97 consensus estimate by 11.0%. Revenue was $5.8B against a $5.5B estimate.
Celestica Inc. delivered a blowout third quarter for fiscal 2026, extending its streak of consensus beats to six consecutive quarters as revenue of $5.83 billion rose 84.6% year-over-year and cleared the $5.46 billion estimate by 6.70%, while adjusted non-GAAP EPS of $3.30 topped the $2.97 consensus by 11.04%. The primary engine behind the outperformance was the Connectivity and Cloud Solutions segment, which generated approximately $4.87 billion in revenue, up 102% from a year ago, reflecting surging enterprise demand for AI infrastructure and high-speed networking hardware. Adjusted operating margin expanded to 8.5% from 7.6% a year earlier, underscoring the operating leverage Celestica is extracting from its rapid growth. Management raised its full-year 2026 revenue outlook to $21.00 billion and adjusted EPS guidance to $11.55, and introduced an initial 2027 outlook projecting revenue of $40.00 billion, adjusted EPS of $21.50, and adjusted operating margin of 9.0%, with customer demand forecasts for 2028 described as meaningfully higher still.
- Higher than anticipated customer demand and strong operational execution drove revenue above guidance
- CCS segment revenue surged 102% year-over-year driven by hyperscaler and AI infrastructure demand
- Adjusted operating margin expanded to 8.5% from 7.6% due to stronger than anticipated operating leverage
- Hardware Platform Solutions revenue grew 70% year-over-year
- ATS segment margin expanded to 6.6% from 5.5%
- Favorable profit mix and discrete tax benefit drove adjusted effective tax rate to 18% versus anticipated 20%
“Celestica's strong momentum continued in the third quarter, achieving revenue of $5.83 billion and adjusted EPS (non-GAAP)* of $3.30, up 83% and 109%, respectively. Our adjusted operating margin (non-GAAP)* of 8.5% represents another new high for the company, demonstrating the strength of our operational execution.”
Celestica CEO, on the earnings call
What Is Celestica's Outlook?
Celestica raised its full-year 2026 outlook to revenue of $21.0 billion (from $20.5 billion) and adjusted EPS (non-GAAP) of $11.55 (from $11.30), with adjusted operating margin unchanged at 8.4%. Free cash flow outlook was lowered to $460 million (from $600 million) due to working capital investments supporting accelerating 2027 growth. Q4 2026 guidance calls for revenue of $6.275–$6.575 billion and adjusted EPS (non-GAAP) of $3.37–$3.57 with adjusted operating margin of 8.7% at mid-point. Initial 2027 outlook projects revenue of $40.0 billion (up 90%), adjusted operating margin of 9.0%, adjusted EPS of $21.50, and capital expenditures of $1.5–$2.0 billion. Customer demand forecasts for 2028 are described as meaningfully higher than the 2027 revenue outlook.
CLS YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $5.8B | $3.2B | +84.6% |
| Gross Profit | $640.8M | $367.2M | +74.5% |
| Operating Income | $460.0M | $212.6M | +116.4% |
| Net Income | $397.2M | $264.8M | +50.0% |
CLS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.