Fabrinet
Q4 2026 Earnings
Non-GAAP adjustments include $56,743K gain on non-marketable equity securities revaluation (excluded), $57,447K Pillar Two tax provision (excluded), $8,261K share-based compensation (excluded), $424K severance, $313K legal costs, and $117K restructuring costs
Market Reaction
Did FN Beat Earnings? Q4 2026 Results
Fabrinet capped fiscal 2026 with a blowout fourth quarter, posting adjusted non-GAAP EPS of $4.10 against a consensus estimate of $3.81, a beat of 7.48% that marked the company's fifth consecutive quarter of exceeding analyst expectations. Revenue of $1.32 billion topped estimates by 3.19% and surged 44.6% year over year, as <a href="https://247wallst.com/investing/2026/07/03/what-makes-fabrinet-a-key-player-in-the-ai-optical-supply-chain/">booming AI optical demand</a> drove record volumes across the company's manufacturing operations. The growth was underpinned by a dramatic expansion in inventories to $1.02 billion from $581.01 million a year ago and a near-doubling of net property, plant and equipment to $615.07 million, reflecting Fabrinet's aggressive capacity investment to serve accelerating infrastructure buildouts. CEO Seamus Grady noted that non-GAAP EPS grew faster than revenue in the quarter. Looking ahead, Fabrinet guided Q1 FY2027 revenue of $1.38 billion to $1.43 billion and non-GAAP EPS of $4.10 to $4.25, signaling management's confidence that strong demand across its business remains durable.
- 45% year-over-year revenue growth in Q4 driven by accelerating demand
- Non-GAAP EPS growth exceeded revenue growth rate
- Multiple significant growth drivers across the business
- Strong momentum in data center and communications infrastructure markets
“Our fourth quarter was exceptional, capping off a remarkable year of accelerating growth and strong momentum. We achieved record quarterly revenue of $1.316 billion, exceeding our guidance range, and increasing 45% from a year ago. Through excellent execution, our non-GAAP EPS grew even faster, and also reached a new all-time high.”
Fabrinet CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY2027 (quarter ending September 25, 2026), Fabrinet expects revenue in the range of $1.375 billion to $1.425 billion. GAAP net income per diluted share is expected to be $3.39 to $3.54, and non-GAAP net income per diluted share is expected to be $4.10 to $4.25, based on approximately 36.3 million fully diluted shares outstanding. Non-GAAP guidance excludes $0.31/share in share-based compensation and $0.40/share in Pillar Two tax provisions. Management remains very optimistic about the strength of the business and durability in growth trends, citing multiple significant growth drivers across the business.
FN YoY Financials
Figures from SEC filings and company reports. Not investment advice.