Celestica reported third quarter 2026 results that significantly exceeded both internal guidance and analyst expectations, fueled by an accelerating AI infrastructure supercycle. The company delivered record adjusted operating margins and issued a massive 2027 outlook, projecting revenue will nearly double to $40 billion.
Key Highlights
- Connectivity & Cloud Solutions (CCS) revenue surged 102% YoY to $4.87 billion, driven by hyperscale demand for AI networking and compute solutions.
- Adjusted operating margin expanded to a record 8.5%, compared to 7.6% in the prior year period, demonstrating strong operational leverage.
- Full-year 2026 revenue guidance was raised to $21.0 billion, and the company issued an initial 2027 outlook of $40.0 billion in revenue and $21.50 in adjusted EPS.
- Free cash flow guidance for 2026 was adjusted downward to $460 million from $600 million to support working capital investments required for 2027 growth.