Celestica guides 2027 revenue to $40bn, up 90%, and raises its 2026 revenue outlook

Celestica set out its first outlook for 2027 on 26 October 2026, forecasting revenue of $40.0bn, which it says would be 90% growth, adjusted EPS (non-GAAP) of $21.50, capital spending of $1.5bn-$2.0bn and a 9.0% adjusted operating margin (non-GAAP), according to its third-quarter release. The Toronto-based electronics manufacturer also raised its 2026 revenue outlook to $21.0bn from $20.5bn and adjusted EPS to $11.55 from $11.30, which chair and chief executive Rob Mionis put at growth of 69% and 91%. The company said its customers' demand forecasts for 2028 are considerably higher than the 2027 revenue it now expects.

Revenue for the three months to 30 September 2026 was $5.83bn, against $3.19bn a year earlier and above the $5.25bn-$5.55bn the company had guided for the quarter. Adjusted EPS (non-GAAP) was $3.30, against $1.58 a year earlier and guidance of $2.88-$3.08; GAAP EPS was $3.26, against $2.31. Celestica attributed the revenue beat to customer demand above its expectations and to its own execution. The GAAP operating margin, earnings from operations as a share of revenue, fell to 7.9% from 10.2% a year earlier, while the adjusted operating margin (non-GAAP) rose to 8.5% from 7.6%.

One of the items separating the two measures is the fair-value change on Celestica's total return swap tied to its own share price, which the company leaves out of its adjusted figures. In the reconciliation, the swap contributed gains of $113.3m to GAAP earnings from operations in the third quarter of 2025 and losses of $3.9m in the third quarter of 2026. Per share and before tax, the release puts the swap's effect on GAAP EPS at plus $0.98 a year earlier and minus $0.03 this quarter.

Connectivity & Cloud Solutions (CCS), the segment that covers the Networking and Compute & Storage end markets, grew revenue 102% year on year to $4.87bn, and its segment margin widened to 8.9% from 8.3%. Within it, Hardware Platform Solutions revenue rose 70% to about $2.3bn. Advanced Technology Solutions (ATS), which spans aerospace and defence, industrial, HealthTech and capital equipment, grew 23% to $0.96bn, with a segment margin of 6.6% against 5.5% a year earlier. For the fourth quarter of 2026, Celestica guides revenue of $6.275bn-$6.575bn and adjusted EPS (non-GAAP) of $3.37-$3.57.

Celestica said it lowered its 2026 free-cash-flow (non-GAAP) outlook to $460m from $600m mainly because of targeted working-capital investment to support faster growth in 2027. Free cash flow (non-GAAP) was $127.5m in the third quarter, against $88.9m a year earlier, while capital spending net of sales proceeds was $262.2m, against $37.3m. Inventories stood at $4.51bn on 30 September 2026, up from $2.19bn at the end of 2025. On 7 August 2026 the company completed a public offering of 11.1 million shares with gross proceeds of $3.45bn, and it ended September with $3.96bn of cash and cash equivalents.