TLDR
- Celestica (CLS) stock is at $271.69, up 10%, after Q3 revenue rose 83% to $5.83 billion.
- Adjusted EPS of $3.30 beat estimates of about $2.96 to $2.99.
- 2026 revenue guidance rose to $21 billion, and 2027 revenue is guided to $40 billion.
- Free cash flow guidance was cut to $460 million from $600 million.
- 23 of 24 analysts rate the stock a Buy, with an average target of $450.50.
Celestica (CLS) stock traded at $271.69 on Tuesday, up $25.04 or 10%. The move followed a third-quarter report that beat Wall Street estimates.
Revenue rose 83% from a year ago to $5.83 billion. Analysts had expected about $5.47 billion.
Adjusted earnings per share came in at $3.30, up from $1.58 a year earlier. The consensus estimate was about $2.96 to $2.99.
Premarket trading was even livelier, with the stock up as much as 15%. The gain later narrowed to about 10%.
The stock needed the lift. It fell 26% over the past month and is still down 18% for the year.
Guidance moves higher
Celestica raised its 2026 revenue target to $21 billion from $20.5 billion. Adjusted EPS guidance went to $11.55 from $11.30.
Fourth-quarter guidance calls for revenue of $6.28 billion to $6.58 billion. Adjusted EPS is expected between $3.37 and $3.57.
The 2027 outlook grabbed the most attention. Celestica expects $40 billion in revenue, well above the $35.71 billion Wall Street forecast.
It also projects 2027 adjusted EPS of $21.50 and an adjusted operating margin of 9%. Management tied the outlook to demand for AI data center infrastructure.
Free cash flow guidance went the other way. The company cut it to $460 million from $600 million, citing working capital needs to support expansion.
Capital spending is expected to reach $1.5 billion to $2 billion in 2027. CEO Rob Mionis said customer demand forecasts for 2028 have also increased.
Valuation and analyst views
Forward P/E is 29.3x for 2026, while the trailing P/E is 47.5x. Gross margin is thin at 12.1%, and operating margin is 8.6%.
Analyst consensus fair value is $286.37, a little above the recent price. Price targets range from $375 to $550, with an average of $450.50.
Of the analysts covering the stock, 23 rate it a Buy and one a Hold. Insiders have sold stock, and Celestica pays no dividend.
Revenue growth was 28.5% in fiscal 2025 and is forecast at 38.8% in 2026. Basic EPS grew 99.2% in 2025.
Celestica traded at $271.69 as of 10:55 on Tuesday, up 10.15%. The fourth-quarter revenue guide of $6.28 billion to $6.58 billion is the next number to hit.
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