10-Q · May 5, 2026
Fabrinet's Q3 2026 results showed significant growth, with revenue reaching $1,214,293,000 and EPS at $3.72, both exceeding analysts' expectations. Compared to the prior period, revenue increased by 39.3% while EPS…
Earnings analysis · 10-K
FN earnings analysis
Filed August 18, 2026 · Our reading of the company's report
The latest report
Fabrinet delivered an acceleration in fiscal 2026, with revenue up 35.7%, operating margin expanding to 10.0%, and diluted EPS increasing to $13.05. Growth was concentrated in data center and communications…
Read full summary
Fabrinet delivered an acceleration in fiscal 2026, with revenue up 35.7%, operating margin expanding to 10.0%, and diluted EPS increasing to $13.05. Growth was concentrated in data center and communications infrastructure, while the company is investing heavily in new Thailand and U.S. capacity to support expected demand. The outlook is strategically constructive, but customer concentration of 57.4%, an unresolved RMB400 million litigation claim, higher capital intensity and currency exposure temper the risk-reward profile.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $13.05
What stood out
-
Broad, flexible optical manufacturing platform
Fabrinet describes its moat as a broad, flexible low-cost manufacturing platform spanning process design, engineering, supply-chain management, advanced packaging, assembly, integration and testing. It cites process optimization, cycle-time reduction, product-mix management, quality/yield improvements and material-cost reductions as supports for maintaining favorable pricing.
-
Growth accelerated with operating leverage
Revenue rose 35.7% to $4.641 billion in fiscal 2026 from $3.419 billion in fiscal 2025, following 18.6% growth in fiscal 2025. Operating income increased 42.7% to $462.9 million and operating margin expanded to 10.0% from 9.4%.
-
Data center and infrastructure led growth
Data center revenue increased 40.8% to $2.225 billion and communications infrastructure revenue increased 47.4% to $1.546 billion. Together, these categories represented 81.2% of fiscal 2026 revenue, up from 76.9% in fiscal 2025.
-
EPS growth outpaced revenue
Net income increased to $473.0 million from $332.5 million and diluted EPS rose to $13.05 from $9.17. Gross margin remained relatively stable at 12.0% versus 12.1% in fiscal 2025, despite higher volumes and continued wage and supply-chain pressure.
-
Aggressive capacity expansion
The company is expanding capacity through a 2.0 million-square-foot Chonburi facility, acquired an 8-acre Navanakorn campus in May 2026, and completed a U.S. manufacturing-facility acquisition for $76.9 million on July 27, 2026. Fiscal 2026 capital expenditures were $298.9 million, compared with $130.7 million in fiscal 2025.
-
Debt-free balance sheet supports flexibility
Fabrinet ended the year with $875.1 million of cash, cash equivalents and short-term investments and no outstanding debt. It repurchased 13,766 shares for $5.2 million during fiscal 2026, leaving $169.0 million of repurchase authorization.
What to watch
-
Customer concentration reached 57.4%
Customer concentration materially increased: four customers each represented at least 10% of revenue in fiscal 2026 and together accounted for 57.4%, versus two customers and 45.8% in fiscal 2025. Cisco represented 19.9%, NVIDIA 16.3%, Nokia 10.7% and Amazon 10.5% of fiscal 2026 revenue, while customer commitments generally do not extend beyond 13 weeks.
-
PRC litigation returned for retrial
A previously dismissed PRC unjust-enrichment lawsuit was accepted for retrial by the PRC Supreme Court on July 30, 2026. Plaintiffs seek RMB400 million plus interest from March 1, 2000, and the company stated that it cannot currently quantify potential liability.
-
Thai-baht exposure pressures earnings
Currency exposure worsened as the U.S. dollar depreciated approximately 9.4% against the Thai baht since June 28, 2024; the company reported a $3.2 million foreign-exchange loss in the three months ended December 26, 2025, reducing EPS by $0.09. As of June 26, 2026, Thai-baht liabilities were $212.2 million versus $33.9 million of assets, despite $280.0 million of forward contracts.
Management's outlook
The 10-K provides no numeric revenue or EPS guidance. MD&A expects fiscal 2027 SG&A and capital expenditures to increase versus fiscal 2026, and expects the portion of revenue attributable to regions outside North America to increase.
Earlier filings 4
10-Q · February 3, 2026
Fabrinet reported a strong quarter with revenue of $1,132,888,000 (up $299,280,000 or +35.9% vs $833,608,000) and diluted EPS of $3.11 (up $0.73 or +30.7% vs $2.38). Gross profit rose to $137,682,000 (gross margin…
10-K · August 20, 2024
Fabrinet reported fiscal 2024 revenue of $2.88 billion, an increase of $237.8 million or 9.0% versus fiscal 2023, driven by higher optical communications sales. The company emphasizes its differentiated optical and…
10-Q · May 7, 2024
Fabrinet reported quarterly revenue of $731,535,000 and diluted EPS of $2.21 for the three months ended March 29, 2024, with revenue up $66,254,000 (9.96%) versus the three months ended March 31, 2023 and diluted EPS up…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.