Celestica (CLS) fell nearly 15% on Q1 results that met top line estimates, beat small on EPS, and came with a $2B bump to the full-year revenue guide. Sounds great (and is), but the new $19B target is back-half weighted…

… with Q2 shaping up to deliver mid-single digit sequential growth, likely due to industry-wide supply constraints for a number of key components.

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We are experiencing more component shortages now than 90 days ago. 2 main factors. One is the demand really continues to grow. And as a result, the suppliers are a little behind on adding capacity.

Robert Mionis (CEO) - Q1/26 call

Management is addressing these challenges by meaningfully building inventory balances and extending procurement cycles out to 2028…

… supported by customer commitments, which give the company even greater revenue visibility and should keep the stock at a premium.

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