Celestica Inc. Q3 2026 Earnings Recap

Celestica’s shares rose 21.2% after earnings, as third-quarter revenue and adjusted EPS beat the company’s guidance ranges and management raised its 2026 outlook. Growth was broad across CCS and ATS, though adjusted gross margin declined 50 basis points, largely from CCS mix.

Key Takeaways

• Revenue was $5.83 billion, up 83% year over year and above the high end of guidance; adjusted EPS was $3.30, up 109% and also above the high end.
• Non-GAAP operating margin reached a company quarterly record of 8.5%, up 90 basis points. Adjusted gross margin, however, fell 50 basis points to 11.2%.
• CCS revenue rose 102% to $4.9 billion, led by compute and storage growth of 242% and networking growth of 68%. ATS revenue increased 23% to $957 million.
• Free cash flow was $128 million in the quarter. Inventory rose $1.1 billion sequentially to $4.5 billion as the company prepared for demand and an accelerating growth outlook in 2027.
• Celestica ended the quarter with approximately $4 billion in cash and $736 million in gross debt, for a net cash position of $3.2 billion.