Celestica: Free Cash Flow Tells The Whole Story (NYSE:CLS)

Celestica reported Q3 FY2026 revenue of $5.83B, up 82.5% YoY, and raised 2027 outlook with $40B revenue forecast. Growth driven by AI racks and networking products, with capital spending and inventory levels increasing. Forward P/E ratio has declined to 14.9x.

Celestica Inc. (CLS) raised its 2026 outlook to $21B revenue and $11.55 EPS, with 2027 guidance at $40B revenue and $21.50 EPS. The company's growth is driven by AI and Ethernet networking segments, with management's conservative guidance potentially understating future performance, according to an analyst.

Citi analyst Atif Malik raised Celestica's (CLS) price target to $436 from $415, citing strong Q3 results and AI-driven demand. Q3 revenue was $5.83B, up 83% YoY, with adjusted EPS at $3.30. The company raised its 2026 outlook to $21B revenue and $11.55 EPS, and expects 2027 revenue of $40B and $21.50 EPS, according to Malik.

Celestica Inc. (NYSE: CLS, TSX: CLS) received approval from the TSX to repurchase up to 3,132,127 common shares, or 2.5% of its public float, through a Normal Course Issuer Bid. The bid, starting November 3, 2026, will be funded by cash or debt and shares will be cancelled. Purchases will be made on TSX, NYSE, and other exchanges, with daily limits. The company previously repurchased 205,184 shares at an average price of US$271.75.

Celestica (CLS) shares rose 8.4% on October 28, 2026, after reporting Q3 earnings of $3.30 per share, beating estimates. Revenue reached $5.83B, up 82.5% YoY. The company raised 2026 guidance and increased 2027 revenue target to $40B. Peers like Flex also gained, with the broader tech sector seeing smaller gains.

Celestica (CLS) shares fell 5.1% after reporting strong Q3 2026 results, but investors reacted to a reduced 2026 free cash flow outlook of $460M (down from $600M) due to AI expansion spending. The company raised 2026 revenue and EPS guidance but introduced a 2027 outlook with $40B revenue and $1.5B-$2.0B capital expenditures.