Celestica Q3 Revenue Jumps 83% to $5.83B; EPS $3.26 Beats Guidance
CLS is trading near its 52-week low of $244.51 (10% above the low) on elevated volume (2.2× avg).
Summary
Celestica reported Q3 2026 revenue of $5.83 billion (+83% YoY) and diluted EPS of $3.26, both above guidance, driven by hyperscaler AI compute and networking demand. Management guides 2027 capex of $1.5-$2.0 billion and expects a net use of cash that year.
Key Events · Earnings and Guidance · CLS
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Q3 Revenue Beats Guidance at $5.83B
Revenue rose 83% to $5,829.7 million from $3,194.0 million a year earlier, above the $5.25-$5.55 billion guidance range, on hyperscaler AI compute and networking demand.
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EPS $3.26 GAAP, $3.30 Adjusted
Diluted EPS of $3.26 compared with $2.31 a year ago; adjusted EPS of $3.30 exceeded the $2.88-$3.08 guidance range. Net earnings were $397.2 million.
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Compute & Storage Revenue Triples
The Compute & Storage end market generated $1,609.1 million, up 242% from $470.1 million, while Networking rose 68% to $3,263.2 million. CCS segment margin improved to 8.9% from 8.3%.
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Capex Steps Up Sharply
Capital expenditures were $767.4 million in the first nine months of 2026 versus $106.5 million a year earlier. Management guides about $1 billion for 2026 and $1.5-$2.0 billion for 2027, with a net use of cash expected in 2027.
Analysis · CLS · Manufacturing
Celestica's AI-driven data center business is compounding far faster than expected. Revenue of $5.83 billion beat the top of its own $5.25-$5.55 billion guidance range, and adjusted EPS of $3.30 cleared the $2.88-$3.08 range. The Compute & Storage end market more than tripled to $1.61 billion as hyperscaler AI compute volumes ramped. The trade-off is capital intensity: capex was $767.4 million in the first nine months, and management guides $1.5-$2.0 billion for 2027, with a net use of cash expected that year. Gross margin slipped to 11.0% from 13.0% on mix and TRS mark-to-market swings, so the growth is lower-margin than a year ago. Cash of $3.96 billion, boosted by the August $3.39 billion net offering, funds the build-out.
How filings like this one have moved
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At the time of this filing, CLS was trading at $269.64 on NYSE in the Manufacturing sector, with a market capitalization of approximately $31.1B. The 52-week trading range was $244.51 to $474.03. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.