Live: Will Fabrinet (NYSE: FN) Soar After Earnings Tonight?

Fabrinet will host a conference call at 5 p.m. ET. If you leave this page open we’ll post highlights from the call which will automatically update.

FN | Fabrinet Q4’25 Earnings Highlights:

• Adj. EPS: $2.65 [✅]; UP +10% YoY
• Revenue: $909.7M (Est. $910M) [✅]; UP +21% YoY
• Adj. Gross Margin: 12.5% [✅]; UP +20 bps YoY
• Net Income: $87.2M [✅]; UP +7% YoY
• Free Cash Flow: $4.7M; DOWN -93% YoY

Outlook:

• Revenue: $910M to $950M [➖]
  • Fabrinet expects continued strong demand across all business areas, which is anticipated to drive revenue growth in the first quarter of fiscal year 2026.
  • Management remains optimistic about favorable trends extending into the upcoming quarter.
• GAAP net income per diluted share: $2.48 to $2.63 [➖]
• Non-GAAP net income per diluted share: $2.75 to $2.90 [➖]

Other Key Q4 Metrics:

• Adj. Operating Income: $97.5M [✅]; UP +21% YoY
• Adj. Operating Expenses: $22.2M [✅]; UP +16% YoY
• Effective Tax Rate: 6.5% (vs. 4.8% YoY)
• Cash and Cash Equivalents: $306.4M; DOWN -25% YoY
• Inventories: $581.0M; UP +25% YoY
• Trade Accounts Receivable: $758.9M; UP +28% YoY

CEO Commentary:

• Seamus Grady: “Our fourth quarter was exceptional, capping off a remarkable year with strong momentum. We achieved record quarterly revenue of $910 million, exceeding our guidance range. Through excellent execution, our non-GAAP EPS also reached a new all-time high. For all of fiscal year 2025, we achieved record revenue of $3.4 billion, an increase of 19% from the prior year. We’re encouraged by the growing demand across all areas of our business and remain optimistic that these favorable trends will carry into the first quarter and beyond.”

Looking at other earnings tonight, Palo Alto Networks reported guidance for its next fiscal year above Wall Street expectationsa and is up 6%.

Fabrinet shares have rebounded slightly, and are now down about 1.5%.

Fabrinet’s earnings seem very solid to us, but Wall Street isn’t as impressed. Shares are down 2% at 4:23 p.m. ET.

We’ll keep evaluating them and looking if there’s anything concerning.

Guidance falls for revenues of $930 million at the midpoint and EPS $2.75 to $2.90.

As a reminder, this is what Wall Street was expecting:

• Revenue: $915.3 million
• Adjusted EPS: $2.74

That’s very solid guidance and outpaces the results we saw from Coherent last week.

Shares are initially up about 1%.

Key figures:

Adjusted EPS of $2.65

Revenue of $909.7 million.

Here’s what Wall Street expected:

• Revenue: $882 million
• Adjusted EPS: $2.63

While Wall Street is focused on whether Fabrinet will ‘beat’ consensus revenue and EPS expectations for last quarter, they’ll also be watching what guidance Fabrinet provides for its Fiscal Q1.

Here’s the Q1 figures Wall Street currently expects:

• Revenue: $915.3 million
• Adjusted EPS: $2.74

Remember, Fabrinet will issue a range for its guidance, so you’ll want to see whether the midpoint of its range is above or below these figures.