10-Q · July 27, 2026
Celestica delivered a strong Q2, with revenue of $4.6986 billion up 62% year over year and GAAP EPS of $3.17 up 74%, while revenue and adjusted EPS exceeded the company’s Q2 guidance ranges. Growth was led by CCS,…
Earnings analysis · 10-Q
CLS earnings analysis
Filed October 26, 2026 · Our reading of the company's report
The latest report
Celestica delivered exceptionally strong Q3 results, with revenue up 83% year over year to $5.83 billion and GAAP EPS up 41% to $3.26, both supported by hyperscaler networking and AI compute demand. CCS and ATS margins…
Read full summary
Celestica delivered exceptionally strong Q3 results, with revenue up 83% year over year to $5.83 billion and GAAP EPS up 41% to $3.26, both supported by hyperscaler networking and AI compute demand. CCS and ATS margins improved sequentially, while operating cash flow and liquidity strengthened materially following the $3.39 billion equity offering. Offsetting concerns are the decline in gross margin, sharply higher capital spending and elevated customer concentration, but the quarter’s growth and execution trends support a bullish assessment.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.26
What stood out
-
Revenue growth materially exceeded outlook
Q3 revenue rose 83% year over year to $5,829.7 million and 24% sequentially from $4,698.6 million, exceeding the reported Q3 guidance high end of $5.55 billion.
-
EPS beat guidance and prior year
GAAP diluted EPS increased 41% year over year to $3.26 from $2.31 and rose from $3.17 in Q2 2026. Adjusted EPS was $3.30, above the Q3 guidance high end of $3.08.
-
CCS drove growth and leverage
CCS revenue increased 102% year over year to $4,872.3 million, while CCS segment margin expanded to 8.9% from 8.3%, reflecting improved operating leverage.
-
Liquidity strengthened substantially
Cash and equivalents increased to $3,961.3 million from $595.6 million at December 31, 2025, largely reflecting $3,391.3 million of net proceeds from the August public offering.
-
Operating cash conversion improved
YTD operating cash flow increased to $1,156.9 million from $408.9 million, and YTD free cash flow rose to $412.5 million from $302.4 million despite $744.4 million of net capital expenditures.
-
Working-capital efficiency improved
The cash cycle improved to 42 days from 47 days in Q2 2026 and 65 days in Q3 2025; days in receivables declined to 56 from 63 sequentially and 68 year over year.
What to watch
-
Gross-margin compression
Gross margin declined to 11.0% from 13.0% in Q3 2025 and 12.3% in Q2 2026. Management cited CCS mix and unfavorable TRS fair-value adjustments, including a $0.9 million loss in cost of sales versus a $48.5 million gain in Q3 2025.
-
Rapid capacity investment raises execution risk
Capital intensity increased sharply: YTD capital expenditures were $767.4 million versus $106.5 million in YTD 2025, while management expects approximately $1.0 billion of 2026 spending and $1.5-$2.0 billion in 2027.
-
Customer concentration increased
Customer concentration increased, with the top 10 customers representing 85% of Q3 revenue versus 80% in Q3 2025; three CCS customers represented 35%, 17% and 14% individually.
-
Working-capital demands remain elevated
Working-capital funding remains significant: Q3 inventory consumed $1,108.0 million of cash and accounts receivable consumed $424.9 million; $700.8 million of sold receivables remained outstanding at September 30, 2026.
-
2027 cash use and unchanged risk profile
The company expects a net use of cash in 2027 from higher working-capital requirements and capital expenditures. The filing also states that there were no material changes to the risk factors disclosed in the 2025 10-K.
Management's outlook
The 10-Q reports Q3 2026 guidance of $5.25-$5.55 billion revenue and $2.88-$3.08 adjusted EPS; actual revenue was $5.83 billion and adjusted EPS was $3.30. The filing states that the 2026 annual outlook update was contained in the October 26 press release and was not incorporated into the 10-Q, so no new annual guidance direction is provided here.
Earlier filings 4
10-Q · April 27, 2026
Celestica reported materially higher Q1 2026 revenue of $4,047.0 million (up 53% YoY) with gross profit of $437.2 million (up 60% YoY) and GAAP diluted EPS of $1.83 (up 147% YoY). Both reportable segments expanded: CCS…
10-K · February 27, 2026
Celestica reported strong 2025 top-line growth driven by data-center/hyperscaler programs: total revenue for 2025 was $12.38 billion with the Connectivity & Cloud Solutions (CCS) segment up 42% to $9.19 billion.…
10-Q · April 24, 2025
Celestica reported Q1 2025 revenue of $2,648.6 million (up $439.7 million or 19.9% vs Q1 2024's $2,208.9 million) with diluted EPS of $0.74 (down from $0.77 in Q1 2024). Revenue growth was driven by CCS (Communications)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.