Celestica Inc. Q3 2026 Earnings Recap

Celestica shares rose 12.1% after third-quarter revenue and adjusted EPS both topped the high end of company guidance, with strength across CCS and ATS. Investors also received an upbeat outlook: management cited accelerating demand into 2027, though adjusted gross margin declined on mix and inventory rose sharply as the company prepared for growth.

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 guidance.
• Non-GAAP operating margin rose 90 basis points to a company-record 8.5%, while adjusted gross margin fell 50 basis points to 11.2%, largely due to CCS mix.
• CCS revenue increased 102% to $4.9 billion. Networking revenue rose 68%, and Compute and Storage revenue rose 242%; both exceeded the outlook cited on the call.
• ATS revenue grew 23% to $957 million, above the company’s mid-teens growth outlook, with segment margin up 110 basis points to 6.6%.
• Inventory increased $1.1 billion sequentially to $4.5 billion. Celestica generated $128 million of free cash flow and ended the quarter with $3.2 billion in net cash.