The Investor
27 Oct 2026, 09:58
Celestica Jumps 17.6% Premarket as Q3 Results Beat Guidance and 2027 Revenue Outlook Surges
Celestica (NYSE: CLS) shares jumped about 17.6% in premarket trading after the company reported third-quarter 2026 revenue and adjusted EPS above the high end of its guidance and issued an exceptionally strong initial outlook for 2027.
Third-quarter revenue surged 83% year over year to $5.83 billion, while adjusted EPS more than doubled to $3.30 from $1.58. Adjusted operating margin expanded to a record 8.5% from 7.6%.
Growth was led by the Connectivity & Cloud Solutions segment, where revenue jumped 102% to $4.87 billion. Hardware Platform Solutions revenue rose about 70%, while the Advanced Technology Solutions segment grew 23%.
Management raised its 2026 outlook to $21.0 billion of revenue and $11.55 of adjusted EPS, up from prior expectations of $20.5 billion and $11.30. Free cash flow guidance was reduced to $460 million from $600 million, primarily because of working-capital investments to support faster growth.
The biggest catalyst appears to be the 2027 outlook. Celestica expects revenue of $40.0 billion, representing about 90% growth, adjusted EPS of $21.50 and an adjusted operating margin of 9.0%. Management said demand from hyperscalers and frontier AI labs remains very robust, with customer forecasts for 2028 meaningfully above the 2027 revenue outlook.
The 17.6% premarket rally therefore appears to reflect both the Q3 beat and a major upward reset in growth expectations as AI infrastructure demand accelerates.
Celestica (NYSE: CLS) shares jumped about 17.6% in premarket trading after the company reported third-quarter 2026 revenue and adjusted EPS above the high end of its guidance and issued an exceptionally strong initial outlook for 2027.
Third-quarter revenue surged 83% year over year to $5.83 billion, while adjusted EPS more than doubled to $3.30 from $1.58. Adjusted operating margin expanded to a record 8.5% from 7.6%.
Growth was led by the Connectivity & Cloud Solutions segment, where revenue jumped 102% to $4.87 billion. Hardware Platform Solutions revenue rose about 70%, while the Advanced Technology Solutions segment grew 23%.
Management raised its 2026 outlook to $21.0 billion of revenue and $11.55 of adjusted EPS, up from prior expectations of $20.5 billion and $11.30. Free cash flow guidance was reduced to $460 million from $600 million, primarily because of working-capital investments to support faster growth.
The biggest catalyst appears to be the 2027 outlook. Celestica expects revenue of $40.0 billion, representing about 90% growth, adjusted EPS of $21.50 and an adjusted operating margin of 9.0%. Management said demand from hyperscalers and frontier AI labs remains very robust, with customer forecasts for 2028 meaningfully above the 2027 revenue outlook.
The 17.6% premarket rally therefore appears to reflect both the Q3 beat and a major upward reset in growth expectations as AI infrastructure demand accelerates.
