Celestica: Irrational Pullback Gives Another Buying Opportunity

Celestica posted strong Q1 results, with revenue up 53% and EPS up 80%, confirming hyperscaler demand remains robust even as investors worry about margin pressure. The real story is CCS and HPS, where 1.6T switching, liquid cooling, and future CPO programs could materially expand revenue, mix quality, and margins further. Although margins may be peaking near term, accelerating capacity ramps and richer product content should still drive impressive earnings growth through 2027 and beyond thereafter.