$CLS

The stock had run a lot before earnings. The report was strong, but the expectation bar was extremely high. The story did not break, on the contrary, it got stronger. The real place the market may be stuck on could be FCF. While the company seriously raised its 2026 revenue and EPS guidance, it did not change its previous $500M free cash flow outlook. This may mean that AI growth requires more capex and working capital. In Q1, operating cash flow was $356.3M, while capex was $218.4M and FCF was $137.9M. So the company is making money, but it is spending serious money to grow. This is also the market’s fear. It is asking this question; This AI growth is very nice, but is it very expensive growth? If revenue and EPS are rising while FCF stays the same, the market thinks this: This growth looks very good on paper, but cash is not coming back to the treasury at the same speed. That is why I believe the stock dropped. But this does not mean the story is broken. It means more of this: Growth is strong, but more money is staying inside to finance this growth.
It will open with selling into the BoS zone