Fabrinet Ordinary Shares (FN) Earnings

metirFinance

Dec 2026upcoming

Next quarter

Expected to report Feb 1, 2027 — estimated from last year’s reporting date.

Consensus is $4.62 EPS for Dec 2026 across 3 estimates, ranging $4.60 to $4.63.

FN Sep 2026

Reported Nov 2, 2026

: 3.87%
: +15.45%

: $3.88
: $4.03
: —
: $1.47B

Reported results

: $1.47B; from $978.13M
: 11.79%; from 11.90%
: $146.00M; from $94.19M
: 9.90%; from 9.63%
: $103.50M; from $95.93M
: $2.86; from $2.66

Highlights

Record revenue: Q1 FY2027 revenue rose 50.8% year over year to $1.474 billion, which Fabrinet said exceeded its guidance range.
EPS above consensus: The supplied analyst data lists EPS of $4.03 versus $3.88 expected, a 3.87% beat; the release reports GAAP diluted EPS of $2.86 and non-GAAP diluted EPS of $4.34.
Data center led growth: Data center revenue climbed 77.6% to $777.1 million, or 52.7% of sales; communications infrastructure grew 34.7% to $443.9 million and automotive, industrial and other revenue rose 20.1% to $253.4 million.
Operating leverage: Operating income increased 55.0% to $146.0 million and GAAP operating margin expanded to 9.9% from 9.6%; non-GAAP operating margin rose to 10.8% from 10.6%.
Reported earnings had sizable adjustments: GAAP net income grew 7.9% to $103.5 million, including a $21.5 million non-marketable equity valuation loss and $19.9 million of Pillar Two tax expense; non-GAAP net income was $157.4 million.
Q2 outlook points higher: Fabrinet expects revenue of $1.60 billion to $1.65 billion and non-GAAP diluted EPS of $4.77 to $4.92 for the quarter ending December 25, 2026.
Investment weighed on cash generation: Operating cash flow was $21.3 million against $158.7 million of capital spending, producing negative free cash flow of $137.4 million.
Buyback authorization expanded: Fabrinet repurchased $29.1 million of shares in Q1 and authorized another $103.0 million, taking aggregate authorization to $637.3 million.

Analysis

Fabrinet opened FY2027 with record revenue of $1.474 billion, up 50.8% from $978.1 million a year earlier, and said sales exceeded its guidance range. The supplied analyst data lists EPS of $4.03 versus a $3.88 consensus, a 3.87% beat; the company’s release separately reports GAAP diluted EPS of $2.86 and non-GAAP diluted EPS of $4.34. The supplied quarter history does not include Q4 FY2026, so a direct comparison with the immediately preceding quarter is unavailable; the last listed quarter, Q3 FY2026, had revenue of $1.21 billion and diluted EPS of $3.45.

The defining drivers were broad-based market growth, with data center revenue up 77.6% and communications infrastructure up 34.7%, and modest operating-margin expansion as operating income rose 55.0% to $146.0 million. GAAP net income grew only 7.9% to $103.5 million, affected by a $21.5 million valuation loss on non-marketable equity securities and $19.9 million of Pillar Two tax expense; non-GAAP net income was $157.4 million. Fabrinet’s Q2 forecast calls for $1.60 billion to $1.65 billion of revenue and $4.77 to $4.92 of non-GAAP diluted EPS. High capital spending and working-capital needs left free cash flow negative at $137.4 million.

Market mix and growth

Data center: Revenue increased 77.6% year over year to $777.1 million, expanding to 52.7% of total sales from 44.7%. The category includes data center interconnect, high-performance computing and other data center applications.
Communications infrastructure: Revenue rose 34.7% to $443.9 million, or 30.1% of sales versus 33.7% a year ago.
Other end markets: Automotive, industrial and other revenue grew 20.1% to $253.4 million, representing 17.2% of the total.
Geography: Asia-Pacific and others generated 72.0% of revenue, North America 24.6% and Europe 3.4%. U.S. ship-to revenue increased to $342.8 million from $205.5 million a year earlier.

Margins and reported earnings

Operating results: Gross profit increased 49.3% to $173.8 million, while gross margin was 11.8%, down slightly from 11.9%. Operating income rose 55.0% to $146.0 million and operating margin improved to 9.9% from 9.6%.
Adjusted profitability: Non-GAAP operating income was $158.5 million, with a 10.8% margin versus 10.6% a year earlier. Non-GAAP net income rose to $157.4 million from $105.3 million, and non-GAAP diluted EPS was $4.34 versus $2.92.
Items affecting GAAP: Net income increased to $103.5 million from $95.9 million, but included a $21.5 million unrealized loss on the Raytek Semiconductor investment and $19.9 million of Pillar Two tax expense. The effective tax rate rose to 20.1% from 5.4%; the release’s non-GAAP reconciliation excludes both items.

Q2 guidance

For the quarter ending December 25, 2026, Fabrinet expects revenue of $1.60 billion to $1.65 billion, about 8.5% to 11.9% above Q1’s $1.474 billion. It forecasts GAAP diluted EPS of $3.81 to $3.96 and non-GAAP diluted EPS of $4.77 to $4.92, each based on approximately 36.2 million diluted shares. The company attributed its strong start to demand across significant programs and new product ramps, and said it entered Q2 with momentum.

Cash flow and capacity

Free cash flow: Operating cash flow was $21.3 million, down from $102.6 million a year earlier. Capital expenditures rose to $158.7 million from $45.3 million, resulting in free cash flow of negative $137.4 million versus positive $57.3 million.
Working capital: Receivables used $143.3 million of cash and inventory used $178.2 million as Fabrinet prepared for higher demand; a $262.1 million increase in payables partly offset those outflows. Inventory on the balance sheet reached $1.193 billion, up from $1.021 billion at June 26.
Expansion funding: Net property, plant and equipment increased to $778.2 million from $615.1 million. Fabrinet borrowed $74.7 million under a 2.45% term loan to support capital expenditures, including facility investment in Thailand and the U.S.

Capital returns

Fabrinet repurchased 76,721 shares for $29.1 million during the quarter at an average price of $379.83 per share. In October, the board authorized an additional $103.0 million of repurchases, bringing aggregate authorization to $637.3 million. Cash, cash equivalents and short-term investments totaled $755.8 million at quarter end, alongside $74.7 million of outstanding debt.

Fabrinet Ordinary Shares

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