10-K · August 18, 2026
Fabrinet delivered an acceleration in fiscal 2026, with revenue up 35.7%, operating margin expanding to 10.0%, and diluted EPS increasing to $13.05. Growth was concentrated in data center and communications…
Earnings analysis · 10-Q
FN earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Fabrinet delivered strong growth, with revenue of $1.474 billion, up 51% year over year, and non-GAAP diluted EPS of $4.34, up 49% and above consensus. Demand continued to shift toward data center products, which…
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Fabrinet delivered strong growth, with revenue of $1.474 billion, up 51% year over year, and non-GAAP diluted EPS of $4.34, up 49% and above consensus. Demand continued to shift toward data center products, which represented 52.7% of revenue versus 44.7% a year earlier, and management issued Q2 outlook for $1.60 billion-$1.65 billion of revenue and $4.77-$4.92 of non-GAAP EPS. However, negative free cash flow of $137.4 million, a $19.9 million Pillar Two tax expense, customer concentration of 46.7%, and reopened PRC litigation temper the otherwise positive operating trend.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.34
What stood out
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Revenue growth and beat remained strong
Revenue was $1.474 billion, up 51% year over year and approximately 5.0% above the $1.404 billion consensus estimate.
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EPS exceeded consensus
Non-GAAP diluted EPS was $4.34, up 49% year over year and approximately 5.1% above the $4.13 consensus estimate.
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Mix shifted toward data centers
Data center products increased to 52.7% of revenue from 44.7% in the prior-year quarter, while communications infrastructure declined to 30.1% from 33.7%.
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Liquidity remained substantial
Cash, cash equivalents and short-term investments totaled $755.8 million at September 25, 2026, down from $875.1 million at June 26, 2026.
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Share repurchases continued
The company repurchased 76,721 shares during the quarter for an aggregate purchase price of $29.1 million, leaving $139.9 million of authorization available.
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Management expects continued growth
Management guided to Q2 revenue of $1.60 billion-$1.65 billion and non-GAAP diluted EPS of $4.77-$4.92.
What to watch
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Growth came with heavy cash use
Free cash flow was negative $137.4 million despite $1.474 billion of revenue, indicating that rapid growth and investment are consuming cash.
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Customer concentration remains material
Three customers each contributed at least 10% of revenue and together represented 46.7% of current-quarter revenue, versus 51.5% in the prior-year quarter.
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PRC litigation was reopened
The PRC Supreme Court accepted a retrial of litigation seeking RMB 400 million plus interest; the company stated that potential liability cannot currently be quantified.
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Pillar Two tax expense increased
The company recognized $19.9 million of current income tax expense related to enacted Pillar Two legislation during the quarter, creating a direct earnings and cash-tax headwind.
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Foreign-exchange exposure remains significant
A 10% weakening of the U.S. dollar against the Thai baht and RMB would have reduced the company’s net dollar position by approximately $28.6 million as of September 25, 2026.
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Supply constraints may limit growth
The company stated that wafer lead times can be as long as 30 weeks and that it expects supply-chain strain and periodic supplier problems to continue for the foreseeable future.
Management's outlook
The company provided Q2 fiscal 2027 outlook of $1.60 billion-$1.65 billion revenue and $4.77-$4.92 non-GAAP diluted EPS; the filing does not provide a prior numeric Q2 outlook, so direction versus prior outlook cannot be determined.
Earlier filings 4
10-Q · May 5, 2026
Fabrinet's Q3 2026 results showed significant growth, with revenue reaching $1,214,293,000 and EPS at $3.72, both exceeding analysts' expectations. Compared to the prior period, revenue increased by 39.3% while EPS…
10-Q · February 3, 2026
Fabrinet reported a strong quarter with revenue of $1,132,888,000 (up $299,280,000 or +35.9% vs $833,608,000) and diluted EPS of $3.11 (up $0.73 or +30.7% vs $2.38). Gross profit rose to $137,682,000 (gross margin…
10-K · August 20, 2024
Fabrinet reported fiscal 2024 revenue of $2.88 billion, an increase of $237.8 million or 9.0% versus fiscal 2023, driven by higher optical communications sales. The company emphasizes its differentiated optical and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.