Celestica raises 2026 outlook, cuts free cash flow forecast and sets 2027 revenue at $40.0 billion

Celestica reported third-quarter earnings of $3.30 a share on revenue of $5.83 billion. For the fourth quarter, it expects revenue of $6.275 billion to $6.575 billion and adjusted earnings per share of $3.37 to $3.57.

For the full year, the company now expects revenue of $21.0 billion, up from $20.5 billion, and adjusted earnings per share of $11.55, up from $11.30. It cut its free cash flow forecast, which measures the cash left after capital spending, to $460 million from $600 million. Rob Mionis, Chair and CEO, said stronger demand from hyperscalers and frontier AI labs drove the higher 2026 outlook and the first guidance for 2027.

For 2027, Celestica set an initial outlook of $40.0 billion in revenue, adjusted earnings per share of $21.50, an adjusted operating margin of 9.0% and capital expenditures of $1.5 billion to $2.0 billion. The company intends to file for a new normal course issuer bid, a program to buy back its own shares, in the fourth quarter. The current program expires on November 2, 2026. The new one would allow repurchases of up to 2.5% of its public float, the shares available to public investors.

The 2027 outlook is the bigger change. A $40.0 billion revenue target would roughly double the $21.0 billion set for 2026, and the company ties it to demand from hyperscalers and frontier AI labs. The cut to free cash flow reverses the increase Celestica gave with its second-quarter results. The company attributes the cut to working capital spending, meaning cash tied up in day-to-day operations, which it says is meant to support growth in 2027. If that revenue arrives, the cash outlay looks like the cost of the ramp. If it slips, the lower cash figure will be harder to justify.