Celestica’s September-quarter adjusted EPS was C$3.30, beating the calendar estimate of C$2.97 by 11.1%. Revenue growth and a higher outlook support the AI-infrastructure growth story. But increased investment and a recent share-price pullback leave execution risks in focus.
Celestica Inc. (TSX: CLS) reported third-quarter 2026 results after the market closed on October 26. Adjusted earnings came in at C$3.30 per share, compared with the supplied calendar estimate of C$2.97. Revenue reached US$5.83 billion, up about 83% from a year earlier. The company also raised its 2026 outlook and set ambitious targets for 2027.
Recent earnings trend
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Celestica Inc.
CLS.TO
CLS.TO
Celestica Inc.
WealthAwesomeMarket cap
$48.97B
P/E
29.5x
52W high
$655.50
52W low
$330.79
1W change
-8.03%
Beta
1.32
Analyst Price Targets
Based on analyst covering CLS · as of Oct 28, 2026
Wall Street analysts forecast CLS stock price to rise 72.3% over the next 12 months.
Consensus
BullishBased on avg. target vs last close (formal rating unavailable for Canadian listings)
Avg. Target
C$669.02
+72.3% Upside
Previously C$666.61 on Oct 27, 2026
Current Price
C$388.33
Last close
Targets are snapshotted when they change. Unchanged figures keep their original date. Not financial advice.
Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on CLS's historical volatility
30-Day Vol
71.3%
Annualized
90-Day Vol
80.8%
Annualized
Trend (90d)
-50.0%
Annualized drift
90d Mean
C$324.82
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$365.89 | C$286.05 – C$468.02 |
| 60 trading days | C$344.75 | C$243.39 – C$488.31 |
| 90 trading days | C$324.82 | C$212.07 – C$497.54 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
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Analyst coverage: 16 analyst(s) cover this name; upcoming EPS consensus is available.
Beat estimates in 4 of the last 4 comparable quarter(s).
| Fiscal period | Report date | Actual EPS | Estimate | Surprise |
|---|---|---|---|---|
| 2026-09-30 | 2026-10-26 | 3.3000 | 2.9700 | +11.1% |
| 2026-06-30 | 2026-07-27 | 2.5400 | 2.3100 | +10.0% |
| 2026-03-31 | 2026-04-27 | 2.1600 | 2.0800 | +3.8% |
| 2025-12-31 | 2026-01-28 | 1.8900 | 1.7600 | +7.4% |
| 2025-09-30 | 2025-10-27 | 1.5800 | 1.4900 | +6.0% |
| 2025-06-30 | 2025-07-28 | 1.3900 | 1.2300 | +13.0% |
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For Canadian investors, the results show how demand for data-centre and networking hardware is driving growth. But Celestica’s planned capital spending and working-capital needs are worth watching. See the Celestica stock page for more company and share information.
Investor takeaway: Celestica beat estimates again and posted strong year-over-year growth, with AI-related demand lifting its Connectivity & Cloud Solutions business. Higher 2026 guidance and a US$40 billion revenue target for 2027 point to further expansion. At the same time, the company lowered its 2026 free-cash-flow outlook and expects to spend heavily on capital projects. Investors should weigh those growth targets against execution, customer-concentration and cash-conversion risks.
11.1% EPS surprise
Adjusted EPS of C$3.30 beat the supplied calendar estimate of C$2.97 by 11.1%. Quarterly revenue was US$5.83 billion, up about 83% from a year earlier. The recent earnings trend table shows the company’s run of estimate beats.
Bull case
Celestica’s revenue climbed to US$5.83 billion from US$3.19 billion a year earlier. Its adjusted operating margin also reached a company record of 8.5%, up from 7.6%. Revenue from Connectivity & Cloud Solutions more than doubled, led by demand for networking, compute and storage.
Management raised its 2026 revenue guidance to US$21 billion and adjusted EPS guidance to US$11.55. For 2027, it forecast US$40 billion in revenue and adjusted EPS of US$21.50. If customer demand holds and production ramps go as planned, the company’s growth could support further earnings gains.
Bear case
Celestica’s growth plans require substantial investment. The company cut its 2026 free-cash-flow outlook to US$460 million from US$600 million, citing planned working-capital investment. It also expects to spend US$1.5 billion to US$2 billion on capital projects in 2027. Inventory rose significantly as the business expanded.
Large hyperscaler programs bring risks tied to customer concentration and production ramps. The recent share-price weakness also shows that strong results haven’t eased all investor concerns. And while adjusted operating margin improved, GAAP operating margin fell from a year earlier.
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