Companies /Technology

Fabrinet

NYSE: FN Electronic Components
$432.71
▼ $5.09 (−1.16%) today
Markets closed · 6:33am ET

Q3 2025 Earnings

Reported May 5, 2025, 4:20pm ET · SEC source
$2.52
Beat +1.91%
EPS · est. $2.47
$871.8M
Beat +1.73%
Revenue · est. $856.9M
+7.5%
Beating market
FN vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−5%0+5%May 5May 6report 4:20pm ETearnings−0.7%−2.1%
−5%0+5%May 5May 6earnings−0.7%−2.1%
FN −2.1%S&P 500 −0.7%
−5%0+5%May 5May 6report 4:20pm ETearnings−0.8%−2.1%
−5%0+5%May 5May 6earnings−0.8%−2.1%
FN −2.1%NASDAQ −0.8%
0+4%+8%+12%May 5May 13report 4:20pm ETearnings+4.2%+12.0%
0+4%+8%+12%May 5May 13earnings+4.2%+12.0%
FN +12.0%S&P 500 +4.2%
0+4%+8%+12%May 5May 13report 4:20pm ETearnings+6.2%+12.0%
0+4%+8%+12%May 5May 13earnings+6.2%+12.0%
FN +12.0%NASDAQ +6.2%
−7.27%
Day of report
+2.47%
Next session
+10.97%
One week
+14.69%
30 days

S&P 500 over the same 30 days: +7.22%.

Did FN Beat Earnings? Q3 2025 Results

Fabrinet delivered a clean beat across the board in its fiscal third quarter, with record revenue of $871.80 million topping the $856.95 million consensus by 1.73% and non-GAAP earnings of $2.52 per diluted share clearing the $2.47 estimate by 1.91%, as the contract manufacturer reported results that exceeded both its own guidance range and Wall Street expectations. Revenue climbed 19.2% from $731.53 million in the year-ago quarter, driven primarily by strong telecom performance that more than compensated for an anticipated sequential softening in datacom revenue. Gross margin compressed modestly to 12.0% on a non-GAAP basis from 12.6% a year earlier, reflecting the mix effects that can accompany rapid revenue scaling, though the top-line momentum clearly dominated the story. CEO Seamus Grady pointed to the company's execution capabilities as a differentiating factor, and management backed that confidence with fourth-quarter guidance of $860 million to $900 million in revenue and non-GAAP EPS of $2.55 to $2.70, signaling continued demand visibility heading into fiscal 2026.

Key Takeaways
  • Strong telecom performance with growth that more than offset an anticipated sequential decline in datacom revenue
  • Record third quarter revenue exceeding guidance range
  • Non-GAAP EPS exceeded guidance

“We had a very strong third quarter with revenue of $872 million dollars, which was above our guidance range. We delivered another strong telecom performance with growth that more than offset an anticipated sequential decline in datacom revenue. Our team continued to execute very well, producing non-GAAP EPS that also exceeded our guidance. Looking ahead, we remain optimistic and confident in our ability to deliver strong execution in the fourth quarter and into fiscal 2026.”

Fabrinet CEO, on the earnings call

Forward Guidance & Outlook

For the fourth fiscal quarter ending June 27, 2025, Fabrinet expects revenue in the range of $860 million to $900 million. GAAP net income per diluted share is expected to be $2.32 to $2.47, and non-GAAP net income per diluted share is expected to be $2.55 to $2.70, based on approximately 36.3 million fully diluted shares outstanding. The CEO expressed optimism and confidence in the company's ability to deliver strong execution in Q4 and into fiscal 2026.

FN YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$300.0M$600.0M$900.0M$731.6M$871.8MRevenue$90.9M$102.2MGross Profit$71.3M$78.9MOperating Income$80.9M$81.3MNet Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.