Fabrinet Revenue Hits $1,474.5 Million in Record Quarter
Key Facts
Fabrinet announced on November 2, 2026, that revenue for the first fiscal quarter, ended September 25, was $1,474.5 million, compared with $978.1 million in the same period of the prior fiscal year. The company described the quarter as a record and said revenue exceeded its guidance range. GAAP net income rose to $103.5 million from $95.9 million. Diluted earnings per share on the same basis also increased to $2.86 from $2.66. The results reflect simultaneous year-over-year growth in revenue and reported earnings.
On a non-GAAP basis, net income was $157.4 million, compared with $105.3 million a year earlier, while diluted earnings per share rose to $4.34 from $2.92. Investing.com reported that quarterly revenue of $1.475 billion and earnings per share of $4.34 exceeded consensus estimates of $1.404 billion and $4.19, respectively. The non-GAAP figures show a separate trajectory from the company’s GAAP results. Exceeding estimates means the reported results came in above the figures the report cited for the market. The company did not attribute the beat to any single factor in its announcement.
Data center products were the largest revenue component, generating $777.1 million, equal to 52.7% of total sales, and growing 77.6% year over year. Telecom infrastructure products revenue was $443.9 million, or 30.1% of the total, up 34.7% year over year. Automotive, industrial and other products generated $253.4 million, representing 17.2% of revenue, and their sales rose 20.1%. The company attributed revenue growth mainly to increased demand from its major customers for data center and telecom infrastructure products. Together, the two segments accounted for most sales, while data centers recorded the fastest growth among the three categories.
CEO Seamus Grady said, "Broad-based demand across multiple key programs drove these results, while increased production of new products further supported our growth." Operating income rose to $146.005 million in the three months ended September 25, 2026, compared with $94.193 million in the three months ended September 26, 2025. The operating income margin increased to 9.9% from 9.6% in the comparison period. However, the gross profit margin fell to 11.8% from 11.9%. These indicators show operating income and its margin rising alongside a slight decline in the gross margin.
The effective tax rate rose to 20.1% in the three months ended September 25, 2026, from 5.4% in the period ended September 26, 2025. The company said the increase was mainly due to top-up taxes under Pillar Two rules. On capital allocation, the board approved adding $103.0 million to its share repurchase authorization. The addition raised the total outstanding authorization to $637.3 million. The buyback decision came as part of the earnings announcement, alongside details of the quarter’s operating and financial performance.
For its second fiscal quarter, ending December 25, 2026, Fabrinet forecast revenue of between $1.6 billion and $1.65 billion. Investing.com reported that the company’s non-GAAP diluted earnings per share guidance range was $4.77 to $4.92, above the consensus estimate of $4.43. The company based its outlook on information available through November 2, 2026, and it was built on approximately 36.2 million fully diluted shares outstanding. The company is scheduled to hold its second-quarter earnings call on February 1, 2027. On November 3, B. Riley cut its price target on the stock to $364 from $385, while maintaining a Neutral rating; an Investing.com report said the cut came amid multiple compression for AI-related optical stocks.