Fabrinet Q1 2027 Earnings Recap

Fabrinet’s shares rose 15.5% after first-quarter revenue of $1.474 billion and non-GAAP EPS of $4.34 both came in above the company’s guidance range. Investors also had a higher-growth outlook to weigh against slight sequential margin pressure as the company scales capacity.

Key Takeaways

• Revenue increased 51% year over year and 12% sequentially; management described this as the company’s highest top-line growth in 10 years.
• Data center revenue rose 78% year over year and 16% sequentially to $777 million, or 53% of total revenue, with growth across transceivers, interconnect and high-performance computing.
• Communications infrastructure revenue was $444 million, up 35% year over year; automotive, industrial and other revenue was $253 million, up 20%.
• Non-GAAP gross margin was 12.1%, down 10 basis points sequentially and 20 basis points year over year. Operating margin was 10.8%, down 10 basis points sequentially but up 20 basis points year over year.
• Fabrinet expects further growth from existing programs and new ramps, plans to begin Building 11 after Building 10 is completed in January, and expects NPO/CPO program contributions toward fiscal year-end.