Fabrinet (NYSE:FN) Releases Quarterly Earnings Results

Fabrinet (NYSE:FN) issued its quarterly earnings data on Monday. The technology company reported $4.10 earnings per share for the quarter, beating the consensus estimate of $3.81 by $0.29, FiscalAI reports. The company had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.28 billion. Fabrinet had a net margin of 9.94% and a return on equity of 19.83%. The company’s revenue was up 44.6% on a year-over-year basis. During the same period in the prior year, the firm earned $2.65 earnings per share. Fabrinet updated its Q1 2027 guidance to 4.100-4.250 EPS.

Here are the key takeaways from Fabrinet’s conference call:

• Record Q4 performance: Revenue rose 45% year over year to $1.316 billion, exceeding guidance, while non-GAAP EPS reached a record $4.10. Full-year revenue increased 36% to $4.6 billion and non-GAAP EPS grew 39% to $14.09.
• Data center demand remained the primary growth engine. Data center revenue increased 68% year over year to $669 million, or 51% of total revenue, driven by DCI, HPC, and transceiver programs; management expects sequential growth in Q1 fiscal 2027.
• Management guided for continued momentum, forecasting Q1 fiscal 2027 revenue of $1.375 billion to $1.425 billion and EPS of $4.10 to $4.25. Executives also cited new program ramps, customer visibility into fiscal 2027 and beyond, and potential opportunities in NPO and optical cross-connect.
• Fabrinet is expanding capacity aggressively to support demand, with Building 10, the Navanakorn site, converted Pinehurst space, and a new Santa Clara campus underway or completed. Management estimates its potential capacity could rise from an approximately $5.3 billion revenue run rate to $12.5 billion–$14 billion over the coming years.
• Expansion is pressuring cash generation, with Q4 free cash flow of negative $37 million and full-year free cash flow of only $4 million as capital expenditures rose. The company also recorded a $57.4 million provision for Thailand’s OECD-related top-up tax, while component shortages remain a constraint even though management said supply risks were incorporated into guidance.

Fabrinet Price Performance

Fabrinet stock opened at $480.36 on Wednesday. The firm has a market cap of $17.21 billion, a PE ratio of 36.81 and a beta of 1.23. The stock’s fifty day moving average price is $524.36 and its two-hundred day moving average price is $569.25. Fabrinet has a one year low of $272.49 and a one year high of $748.89.

Insider Buying and Selling

In other news, Director Homa Bahrami sold 2,500 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $711.91, for a total value of $1,779,775.00. Following the completion of the transaction, the director directly owned 16,233 shares in the company, valued at approximately $11,556,435.03. The trade was a 13.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.24% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Fabrinet

A number of institutional investors have recently added to or reduced their stakes in FN. Evergreen Capital Management LLC boosted its position in shares of Fabrinet by 1.0% during the 2nd quarter. Evergreen Capital Management LLC now owns 3,032 shares of the technology company’s stock worth $893,000 after purchasing an additional 31 shares in the last quarter. Larson Financial Group LLC increased its position in Fabrinet by 25.8% in the 3rd quarter. Larson Financial Group LLC now owns 161 shares of the technology company’s stock valued at $59,000 after buying an additional 33 shares in the last quarter. UMB Bank n.a. increased its position in Fabrinet by 9.5% in the 4th quarter. UMB Bank n.a. now owns 497 shares of the technology company’s stock valued at $226,000 after buying an additional 43 shares in the last quarter. &PARTNERS raised its stake in Fabrinet by 7.4% during the 4th quarter. &PARTNERS now owns 669 shares of the technology company’s stock worth $306,000 after buying an additional 46 shares during the period. Finally, Quadrant Capital Group LLC raised its stake in Fabrinet by 0.7% during the 4th quarter. Quadrant Capital Group LLC now owns 6,628 shares of the technology company’s stock worth $3,018,000 after buying an additional 47 shares during the period. 97.38% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts recently commented on the stock. Weiss Ratings lowered shares of Fabrinet from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, August 12th. Fox Advisors downgraded shares of Fabrinet from a “strong-buy” rating to an “equal weight” rating in a research report on Tuesday, May 5th. Barclays boosted their price objective on Fabrinet from $702.00 to $739.00 and gave the stock an “overweight” rating in a report on Tuesday. JPMorgan Chase & Co. increased their target price on Fabrinet from $680.00 to $695.00 and gave the stock a “neutral” rating in a research note on Tuesday. Finally, Rosenblatt Securities reissued a “buy” rating and set a $750.00 price target on shares of Fabrinet in a report on Tuesday. Five analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, Fabrinet currently has an average rating of “Moderate Buy” and a consensus price target of $649.50.

Fabrinet News Roundup

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Fabrinet reported record fourth-quarter revenue of $1.316 billion, up 45% year over year, while non-GAAP EPS of $4.10 exceeded consensus expectations. Fiscal 2026 revenue rose 36% to $4.64 billion, and annual non-GAAP EPS increased to $14.09. Fabrinet quarterly earnings report
• Positive Sentiment: Data-center revenue surged 68%, reportedly pushing data-center interconnect sales above a $1 billion annualized run rate. Management cited strong demand, new transceiver ramps and additional capacity as drivers of continued growth in fiscal 2027. Fabrinet Q4 earnings and data-center growth
• Positive Sentiment: Fiscal first-quarter guidance was above analyst expectations, with revenue projected at $1.375 billion to $1.425 billion and non-GAAP EPS of $4.10 to $4.25. Rosenblatt and Needham reaffirmed Buy ratings, while JPMorgan raised its price target to $695. Analyst forecasts following Fabrinet results
• Neutral Sentiment: The results reinforce Fabrinet’s growing exposure to AI infrastructure customers, including Cisco, Nvidia, Amazon and Nokia, but also highlight concentration and execution risks if data-center spending or customer demand slows. Fabrinet AI infrastructure customers
• Negative Sentiment: Investors were concerned that capital expenditures jumped to approximately $252.5 million, reducing fiscal-year free cash flow to just $4.2 million from $207.3 million. Inventory also increased to roughly $1.02 billion, and new borrowing by a Thai subsidiary raised concerns about working-capital needs and financing risk. Fabrinet cash flow and inventory analysis
• Negative Sentiment: Quarterly margins were viewed as softer than expected, while reports of weakness in Nvidia’s datacom business overshadowed strength in telecom. The selloff also spread across optical and AI hardware peers amid a broader risk-off market environment. Fabrinet shares and Nvidia datacom weakness

About Fabrinet

Fabrinet is a global provider of advanced optical packaging and precision optical, electro‐mechanical and electronic manufacturing services (CEM). The company specializes in complex manufacturing processes for original equipment manufacturers (OEMs) in communications, data center, industrial, instrumentation and medical markets. Key capabilities include high‐precision fiber alignment, micro‐assembly, testing and diagnostics, and integration of electro‐optic subassemblies.

Incorporated in 2000, Fabrinet operates under a corporate structure headquartered in Singapore with additional regional offices and design centers in the Americas, Europe and Asia.