Q3 revenue rose 82.5% to $5.83B, above guidance, and management guides 2027 revenue to $40.0B 8-K. Adjusted operating margin gains came from lower adjusted SG&A intensity, and the 2026 free cash flow outlook was cut to $460M from $600M 8-K.
Celestica, Inc · Q3 2026 · Reported 26 Oct 2026 · US
Key figures
Million USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Net revenues | 5,829.70 | 3,194.00 | +82.5 % |
Operating income | 460.00 | 325.00 | +41.5 % |
Net income | 397.20 | 267.80 | +48.3 % |
Diluted EPS | 3.26 USD/share | 2.31 USD/share | +41.1 % |
Adjusted EPS (non-GAAP) | 3.30 USD/share | 1.58 USD/share | +108.9 % |
Adjusted operating margin (non-GAAP) | 8.5 % | 7.6 % | +0.9 pp |
CCS segment margin | 8.9 % | 8.3 % | +0.6 pp |
ATS segment margin | 6.6 % | 5.5 % | +1.1 pp |
Operating margin | 7.9 % | 10.2 % | -2.3 pp |
Net margin | 6.8 % | 8.4 % | -1.6 pp |
Figures in USD, as reported. Margins are computed from the reported lines. Changes in ratios are in percentage points.
Revenue beat guidance, driven mainly by the CCS segment
Revenue of $5.83B compared with guidance of $5.25B to $5.55B, which management attributes to higher customer demand and strong execution 8-K. CCS revenue of $4.87B rose 102% with segment margin of 8.9% against 8.3% a year earlier 8-K. ATS revenue of $0.96B rose 23%, and its margin was 6.6% against 5.5% 8-K.
Management raised 2026 revenue to $21.0B from $20.5B and adjusted EPS (company-defined) to $11.55 (non-GAAP) from $11.30 8-K. The adjusted operating margin outlook stayed at 8.4% 8-K. Q4 guidance is revenue of $6.275B to $6.575B and adjusted EPS of $3.37 to $3.57 8-K.
GAAP margin fell, but the adjusted gain came from SG&A leverage
GAAP operating margin was 7.9% against 10.2% a year earlier, even though operating income rose 41.5% to $460.0M 8-K. Total return swap adjustments explain the gap: they were a $3.9M loss in Q3 2026 against a $113.3M gain a year earlier 8-K. Net income rose 48.3% while diluted EPS rose 41.1% to $3.26, because the August offering of 11.1 million shares lifted the share count about 5% 8-K.
Company-defined adjusted operating margin reached 8.5% against 7.6% a year earlier 8-K. Adjusted gross margin slipped to 11.2% (non-GAAP) from 11.7% (non-GAAP), so the improvement came from adjusted SG&A falling to 1.8% of revenue from 3.0% 8-K. Management guides adjusted operating margin to 8.7% for Q4 at the midpoint and 9.0% for 2027 8-K.
Inventory and receivables absorbed cash as the balance sheet was refilled
Operating cash flow was $389.7M against net income of $397.2M, compared with $126.2M against $267.8M a year earlier 8-K. Inventories used $1,108.0M and receivables $424.9M, largely offset by a $1,493.8M increase in payables and accruals 8-K. Free cash flow was $127.5M (non-GAAP) against $88.9M (non-GAAP) a year earlier, after net capital spending of $262.2M 8-K.
Cash reached $3,961.3M after $3,391.3M of net offering proceeds 8-K. Management cut the 2026 free cash flow outlook to $460M from $600M, citing targeted working capital investment to support 2027 growth 8-K. It also guides 2027 capital expenditures of $1.5B to $2.0B 8-K.
What to watch next
Whether Q4 delivers revenue of $6.275B to $6.575B and an adjusted operating margin near 8.7%, the step toward the 2027 outlook of $40.0B revenue and 9.0% margin 8-K.
How working capital and capital spending evolve against the reduced $460M free cash flow outlook, and how the intended new share buyback (up to 2.5% of the public float, if accepted by the TSX) proceeds 8-K.
The release does not give customer concentration.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.