$CLS · CELESTICA INC
Celestica reported Q3 FY2026 results with revenue of $5.83B (+83% YoY) and adjusted EPS of $3.30 (+109% YoY), both above the high end of guidance. The company raised its FY2026 outlook to $21.0B revenue and $11.55 adjusted EPS, and issued an initial FY2027 outlook of $40.0B revenue, 9.0% adjusted operating margin, and $21.50 adjusted EPS — implying 90% revenue growth. Free cash flow guidance was reduced to $460M from $600M to fund working capital for 2027 expansion. The company also announced intent to launch a new NCIB for up to 2.5% of public float.
- Q3 revenue of $5.83B beat the $5.25B–$5.55B guidance range and grew 83% YoY.
- Adjusted EPS of $3.30 beat the $2.88–$3.08 guidance range, up 109% YoY.
- FY2026 revenue outlook raised to $21.0B from $20.5B; adjusted EPS raised to $11.55 from $11.30.
- Initial FY2027 outlook: $40.0B revenue, 9.0% adjusted operating margin, $21.50 adjusted EPS.
- Free cash flow guidance cut to $460M from $600M due to working capital investments for 2027 growth.
Extended-hours trading shows CLS up ~10% to $271.00 vs the $246.40 regular close, reflecting strong positive reaction to the Q3 beat and the massive FY2027 $40B revenue guide. The regular session had closed down 5.23% before the release.
Celestica's $40B FY2027 revenue guide — nearly double the raised FY2026 outlook — signals the AI infrastructure buildout is accelerating dramatically, with 2028 demand already forecasted higher.
Celestica's $40B FY2027 revenue target signals hyperscaler AI infrastructure spending is accelerating, not plateauing. The 90% growth guide and "meaningfully higher" 2028 customer forecasts reinforce the AI supercycle thesis across the data center supply chain.
Free cash flow guidance was cut 23% to $460M from $600M, flagged as working capital investment for accelerating 2027 growth — a cash-consumption risk if growth doesn't materialize. FY2027 capex of $1.5B–$2.0B is a massive step-up requiring flawless execution.