High efficiency CdTe solar cells typically use oxygenated CdS (CdS:O) window layers. We synthesize CdS:O window layers at room temperature (RT) and 270 °C using reactive sputtering. The band gaps of CdS:O layers deposited at RT increase when O2/(O2 + Ar) ratios in the deposition chamber increase. On the other hand, the band gaps of CdS:O layers deposited at 270 °C decrease as the O2/(O2 + Ar) ratios increase. Interestingly, however, our high temperature closed-space sublimation (CSS) processed CdTe solar cells using CdS:O window layers deposited at RT and 270 °C exhibit very similar cell performance, including similar short-circuit current densities. To understand the underlying reasons, CdS:O thin films deposited at RT and 270 °C are annealed at temperatures that simulate the CSS process of CdTe deposition. X-ray diffraction, atomic force microscopy, and UV-visible light absorption spectroscopy characterization of the annealed films reveals that the CdS:O films deposited at RT undergo grain regrowth and/or crystallization and exhibit reduced band gaps after the annealing. Our results suggest that CdS:O thin films deposited at RT and 270 °C should exhibit similar optical properties after the deposition of CdTe layers, explaining the similar cell performance.