FN earnings analysis
What we found in FN's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $13.05
- Gross margin
- 12.0%
- Operating margin
- 10.0%
- Segment
- Data center: $2.225 billion, 47.9% of revenue, up 40.8% year over year.
- Segment
- Communications infrastructure: $1.546 billion, 33.3% of revenue, up 47.4% year over year.
- Segment
- Automotive, industrial and other: $869.6 million, 18.8% of revenue, up 10.1% year over year.
- Segment
- Single operating segment; geographic revenue mix was Asia-Pacific and others 73.9%, North America 22.7%, and Europe 3.4%.
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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