TLDR
- After-hours trading saw CLS stock climb 9.17%, erasing a 5.14% decline from the regular session.
- Third-quarter revenue climbed 83% year-over-year to $5.83 billion on cloud infrastructure growth.
- Adjusted EPS more than doubled to $3.30, while operating margins expanded to 8.5%.
- Full-year 2026 revenue forecast lifted to $21 billion with EPS guidance now at $11.55.
- Management unveiled a $40 billion revenue target for 2027 driven by AI infrastructure expansion.
Shares of Celestica Inc. (CLS) posted a strong after-hours rally Monday following the release of its third-quarter financial results. The electronics manufacturer disclosed an 83% year-over-year revenue increase to $5.83 billion alongside adjusted earnings that more than doubled. The stock climbed 9.17% to $268.99 in extended trading, recovering from losses earlier in the day.
Strong Q3 Results Spark After-Hours Rally for CLS Stock
Celestica shares dropped 5.14% to $246.65 during Monday’s regular session, losing $13.36 ahead of its quarterly report. The after-hours surge followed the company’s disclosure of results for the period ended September 30, 2026. Total revenue jumped from $3.19 billion in the same quarter of 2025.
Adjusted earnings came in at $3.30 per diluted share versus $1.58 in the year-ago period. GAAP earnings rose to $3.26 per diluted share from $2.31 twelve months earlier. On an adjusted basis, earnings per share climbed 109% compared to the prior year.
Celestica achieved an adjusted operating margin of 8.5%, an improvement from 7.6% in last year’s third quarter. Its GAAP operating margin, however, contracted to 7.9% from 10.2% a year prior. The company completed a public offering that generated $3.45 billion in gross proceeds during the quarter.
Company Lifts 2026 Outlook on Stronger Demand Trends
Management responded to the quarterly performance by raising its full-year revenue projection to $21 billion from a prior estimate of $20.5 billion. The adjusted earnings forecast also moved higher to $11.55 per share from $11.30. Executives cited the quarterly beat and improved fourth-quarter visibility as drivers behind the revision.
For the current quarter, Celestica anticipates revenue in the range of $6.275 billion to $6.575 billion. Adjusted earnings are expected to land between $3.37 and $3.57 per diluted share. The company’s guidance assumes an adjusted operating margin of 8.7% at the midpoint of its projections.
Free cash flow expectations for the full year were trimmed to $460 million from an earlier $600 million outlook. Management explained the reduction stems from working capital investments needed to support accelerated growth in 2027. The company maintained its previous adjusted operating margin target of 8.4% for 2026.
Management Projects $40B Revenue Milestone in 2027
Looking further ahead, Celestica outlined plans to reach $40 billion in revenue during 2027, marking 90% growth over its revised 2026 forecast. Adjusted earnings are projected at $21.50 per share next year. The company is targeting a 9.0% adjusted operating margin, which would represent a new record.
Capital expenditures are planned at $1.5 billion to $2 billion throughout 2027. The expansion strategy focuses on equipment and infrastructure supporting hyperscale cloud providers and cutting-edge AI developers. Executives noted that customer demand signals for 2028 already surpass current projections for 2027.
The company’s operations are organized into two main divisions: Connectivity and Cloud Solutions, along with Advanced Technology Solutions. The cloud segment encompasses networking equipment, server systems, and storage hardware, while other divisions serve aerospace, healthcare, and industrial manufacturing clients. The revised outlook reflects increased capacity requirements as customers place larger orders.
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