Fabrinet Earnings Recaps
Q3 2026
May 5, 2026
Shares dropped 6.5% following Fabrinet’s earnings as investors reacted negatively to cautious outlook signals and visible deceleration in datacom revenue alongside ongoing supply constraints.
Key takeaways
- Revenue reached a record $1.214 billion, up 39% year-over-year, but datacom revenue grew only 4% annually and declined 6% sequentially, reflecting supply shortages limiting shipments.
- Telecom revenue within Optical Communications surged 55% year-over-year, led by a 90% increase in data center interconnect demand.
- Non-Optical Communications revenue jumped 52% year-over-year, driven by high-performance compute segment ramping new product generations.
- Automotive revenue decreased modestly quarter-over-quarter, partially offset by 9% growth in industrial laser revenue.
- Management highlighted ongoing supply-demand imbalances expected to persist into next quarter, tempering near-term visibility despite long-term optimism.
Q2 2026
Feb 3, 2026
Fabrinet achieved record second-quarter revenue of $1.13 billion, reflecting a remarkable 36% year-over-year growth, driven by strong performances across optical communications and high-performance computing segments.
Key takeaways
- Second-quarter non-GAAP EPS reached $3.36, exceeding guidance despite a $3 million FX loss.
- Telecom revenue surged 59% year-over-year, with data center interconnect (DCI) modules growing 42%.
- Non-optical communications revenue soared 61%, primarily due to high-performance computing, which contributed $86 million.
- Construction of a new 2 million square foot facility is on schedule for completion by the end of 2026, supporting long-term growth.
- Operating margin improved to 10.9%, reflecting effective cost management alongside strong revenue growth.