Fabrinet posted a strong fiscal fourth quarter, beating Wall Street on both earnings and revenue, but the stock still fell sharply after the closing bell.
FABRINET $FN Q4’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.32B (Est. $1.27B) 🟢; +45% YoY
🔹 Adj. EPS: $4.10 (Est. $3.82) 🟢; +55% YoY
🔹 Oper Income: $134.25M (Est. $137M) 🔴
🔹 Net Income: $139.3M (Est. $139M) 🟡Q1 Guide:
🔹 Revenue: $1.38B-$1.43B (Est. $1.32B) 🟢
🔹 Adj. EPS:… pic.twitter.com/TYsfpopg48— Wall St Engine (@wallstengine) August 17, 2026
The company reported non-GAAP EPS of $4.10, topping the $3.81 consensus by 7.6%. Revenue came in at $1.316 billion, about $46 million above the $1.27 billion estimate.
FN stock closed regular trading on Monday up 4.97% at $598.58. After hours, the stock dropped around 7% to roughly $556, pulling it below the prior close of $570.22.
Revenue was up 45% from a year earlier. That marks 12 straight quarters of record revenue for the company, and six consecutive quarters of accelerating year-over-year growth.
Data center revenue crossed 50% of total sales for the first time, accounting for 51% of the $1.316 billion quarterly total.
Cisco, Nvidia, Nokia and Amazon each accounted for at least 10% of revenue in fiscal 2026. That’s a broader customer base than the company has had in prior years.
CEO Seamus Grady said the quarter’s performance didn’t come from any single product or customer. “What is most noticeable to us is that this performance did not come from any one product category or customer,” he said.
Grady added that several new data center transceiver programs with new customers are expected to begin ramping during the fiscal year.
Full-year revenue for fiscal 2026 reached $4.64 billion, up 36% from $3.42 billion in fiscal 2025. Full-year non-GAAP EPS came in at $14.09, up 39% year over year.
GAAP net income for the quarter was $139.3 million, or $3.83 per diluted share, compared to $87.2 million, or $2.42, in the same quarter a year ago.
Operating margin reached 10.9%, the highest level in three years. Gross margin was 12.2%, up slightly from the prior quarter but down 30 basis points from a year earlier.
For Q1 FY2027, Fabrinet guided for revenue between $1.375 billion and $1.425 billion, with non-GAAP EPS of $4.10 to $4.25. At the midpoint, that implies roughly 43% revenue growth year over year.
The company is also investing heavily in manufacturing capacity. Building 10 in Thailand is on track for early 2027 and is expected to add $3 billion to $3.5 billion in revenue capacity. A newly acquired site in Navanakorn and a Santa Clara expansion each add another $200 million to $250 million.
Total potential revenue capacity is expected to reach $12.5 billion to $14 billion over time.
CFO Csaba Sverha said the company is entering fiscal 2027 with “strong momentum.” Management said customers are providing demand visibility “well out into the end of 2027 and beyond.”
Cash and short-term investments stood at $876 million at quarter end. The stock’s 52-week range is $272.49 to $748.89.
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