The key thing to watch in Celestica’s earnings report is the divergence between profit and cash flow.
Revenue in the third quarter of 2026 was $5.83 billion, above the high end of the company’s original guidance of $5.55 billion. Adjusted EPS was also higher than the original guidance ceiling of $3.08, at $3.30. Adjusted operating margin was 8.5%, compared with 7.9% on a GAAP basis.
But the company lowered its 2026 free cash flow guidance from $600 million to $460 million, a decline of about 23% (on the company’s non-GAAP basis). The company explained that it needs to invest in working capital earlier to prepare for growth in 2027.
The 2027 targets of $40 billion in revenue and a 9% adjusted operating margin are still just guidance. What matters next is how inventory, receivables, and capacity convert into cash—not just the scale of revenue. The earnings call is scheduled for 20:00 tonight and has not yet taken place, so any further explanations should not be treated as conclusions in advance.
Revenue in the third quarter of 2026 was $5.83 billion, above the high end of the company’s original guidance of $5.55 billion. Adjusted EPS was also higher than the original guidance ceiling of $3.08, at $3.30. Adjusted operating margin was 8.5%, compared with 7.9% on a GAAP basis.
But the company lowered its 2026 free cash flow guidance from $600 million to $460 million, a decline of about 23% (on the company’s non-GAAP basis). The company explained that it needs to invest in working capital earlier to prepare for growth in 2027.
The 2027 targets of $40 billion in revenue and a 9% adjusted operating margin are still just guidance. What matters next is how inventory, receivables, and capacity convert into cash—not just the scale of revenue. The earnings call is scheduled for 20:00 tonight and has not yet taken place, so any further explanations should not be treated as conclusions in advance.
