-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Q1 revenues of $4.05B (+53%) and adjusted EPS of $2.16 (+80%) both exceeded guidance on accelerating hyperscaler demand. Adjusted operating margin reached a record 8.0%, due to higher-value CCS offerings, which grew 76% to $3.24B, with segment margin expanding to 8.6%. The company secured a new CPO switch program with a hyperscaler customer expected to ramp in 2027, and we expect more color tomorrow. Management raised 2026 guidance to $19.0B revenue (from $17.0B) and $10.15 adjusted EPS (from $8.75), representing over $6.5B in revenue growth. Stronger growth is anticipated for 2027 based on improved customer visibility and new program wins. The company enlarged its balance sheet by upsizing its credit facility to $2.5B, with revolver capacity increased to $1.75B. FCF of $137.9M remained robust despite elevated capex of $218.4M to support capacity expansion. Share buybacks slowing, FCF guidance lagging, and a +50% month may be contributing to the after-hours selloff.