TLDR
- Fabrinet delivered Q4 non-GAAP earnings per share of $4.10, surpassing analyst expectations of $3.81 by 7.6%
- Quarterly revenue reached $1.316 billion, climbing 45% compared to the prior year and exceeding the $1.27 billion projection
- Shares finished Monday’s regular session up 5% at $598.58 before tumbling 7% in extended trading to approximately $556
- Data center operations represented 51% of total sales, emerging as Fabrinet’s dominant revenue segment
- First quarter FY2027 revenue projections range from $1.375 billion to $1.425 billion
Fabrinet delivered an impressive fiscal fourth quarter performance, surpassing analyst projections for both earnings and sales, yet shares tumbled significantly in after-hours trading.
The optical and electronic manufacturing services provider announced non-GAAP earnings of $4.10 per share, exceeding the Street consensus of $3.81 by 7.6%. Quarterly sales reached $1.316 billion, landing approximately $46 million higher than the anticipated $1.27 billion.
FN shares concluded Monday’s regular trading session with a 4.97% gain, finishing at $598.58. However, in extended trading, the stock plunged roughly 7% to around $556, sliding beneath the previous session’s close of $570.22.
Quarterly revenue surged 45% year-over-year. This milestone represents the company’s 12th consecutive quarter of record-breaking revenue and the sixth straight quarter showing accelerating annual growth rates.
For the first time in company history, data center revenue exceeded half of total sales, comprising 51% of the $1.316 billion quarterly figure.
Diversified Revenue Base Expands
Four major customers—Cisco, Nvidia, Nokia, and Amazon—each contributed at least 10% of revenue during fiscal 2026. This represents a more diversified customer portfolio compared to previous fiscal periods.
CEO Seamus Grady emphasized the broad-based nature of the quarter’s success. “What is most noticeable to us is that this performance did not come from any one product category or customer,” he stated.
Grady noted that multiple new data center transceiver initiatives involving new clients are anticipated to scale up throughout the current fiscal year.
Fiscal 2026 total revenue hit $4.64 billion, representing a 36% increase from the $3.42 billion generated in fiscal 2025. Annual non-GAAP earnings per share totaled $14.09, climbing 39% compared to the previous year.
GAAP net income for the quarter totaled $139.3 million, equivalent to $3.83 per diluted share, versus $87.2 million, or $2.42 per share, in the corresponding quarter last year.
Operating margin expanded to 10.9%, representing the company’s strongest level in three years. Gross margin stood at 12.2%, edging up slightly from the preceding quarter while declining 30 basis points year-over-year.
Forward Guidance and Manufacturing Expansion
Looking ahead to Q1 FY2027, Fabrinet projected revenue in the range of $1.375 billion to $1.425 billion, with non-GAAP earnings per share between $4.10 and $4.25. The midpoint suggests approximately 43% revenue expansion compared to the prior year.
The company continues making substantial investments in production capabilities. Thailand’s Building 10 facility remains on schedule for completion in early 2027 and is projected to contribute $3 billion to $3.5 billion in additional revenue capacity. A recently purchased Navanakorn location and an expanded Santa Clara operation will each provide an extra $200 million to $250 million in capacity.
Combined future revenue capacity is estimated to reach between $12.5 billion and $14 billion over the long term.
CFO Csaba Sverha noted that the company begins fiscal 2027 with “strong momentum.” Leadership indicated that clients are delivering demand forecasts extending “well out into the end of 2027 and beyond.”
Cash reserves and short-term investments totaled $876 million at quarter’s end. The stock has traded between $272.49 and $748.89 over the past 52 weeks.
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