Fabrinet posts strong Q4, raises capacity, guides Q1 2027

Fabrinet (NYSE: FN ) released fourth-quarter financial results and hosted an earnings call on Monday.

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View the webcast at Summary Fabrinet reported a strong fourth quarter with revenue of $1.316 billion, a 45% increase year-over-year, and a non-GAAP EPS of $4.10, both exceeding guidance.

For fiscal year 2026, Fabrinet achieved total revenue of $4.6 billion, up 36% from the previous year, driven by diverse demand across data center and communications infrastructure markets.

The company announced a change in revenue reporting categories to better align with the end markets served: data centers, communications infrastructure, and automotive, industrial, and other revenues.

Fabrinet is expanding its manufacturing capacity with new facilities in Thailand and Santa Clara to support growth, aiming to increase its revenue capacity to between $12.5 and $14 billion over the coming years.

Q1 2027 guidance projects revenue between $1.375 and $1.425 billion, representing 43% year-over-year growth, with EPS expected between $4.10 and $4.25.

Management expressed confidence in sustained demand and growth potential, supported by visibility into customer forecasts extending into fiscal 2027 and beyond.

Full Transcript OPERATOR Good afternoon.

Welcome to Fabrinet's financial results conference call for the fourth quarter of fiscal year 2026.

At this time, all participants are in a listen-only mode.

Later, we will conduct a question-and-answer session, and instructions on how to participate will be provided at that time.

As a reminder, today's call is being recorded.

I would now like to turn the call over to your host, Garo Tumajanian, Vice President of Investor Relations.

Garo Tumajanian, Vice President of Investor Relations Thank you, operator, and good afternoon, everyone.

Thank you for joining us on today's conference call to discuss Fabrinet's financial and operating results for the fourth quarter of fiscal year 2026, which ended June 26, 2026.

With me on the call today are Seamus Grady, Chairman and Chief Executive Officer, and Csaba, Chief Financial Officer.

This call is being webcast and a replay will be available on the Investors section of our website located at investor.fabrinet.com.

During this call, we will present both GAAP and non-GAAP financial measures.

Please refer to the Investors section of our website for important information, including our earnings press release and investor presentation, which include our GAAP to non-GAAP reconciliation as well as additional details of our revenue breakdown.

In addition, today's discussion will contain forward-looking statements about the future financial performance of the company.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from management's current expectations.

These statements reflect our opinions only as of the date of this presentation, and we undertake no obligation to revise them in light of new information or future events, except as required by law.

For a description of the risk factors that may affect our results, please refer to our recent SEC filings, in particular the section captioned Risk Factors in our Form 10-Q filed on May 5, 2026.

We will begin the call with remarks from Seamus and Csaba, followed by time for questions.

I would now like to turn the call over to Fabrinet's Chairman and CEO, Seamus Grady.

Seamus Grady, Chairman and Chief Executive Officer Thank you, Garo.

Good afternoon, everyone, and thank you for joining our call today.

We are delighted to report an outstanding fourth quarter that ended a remarkable year of accelerating year-over-year revenue growth, and we are enthusiastic that our momentum will extend in the first quarter and through fiscal year 2027.

Fourth quarter revenue of $1.316 billion increased 45% year over year and exceeded the top end of our guidance range.

This revenue upside flowed through to the bottom line with non-GAAP EPS of $4.10, which was also above our guidance range.

We were pleased to see success from multiple sustainable growth drivers simultaneously supporting our business as we closed out fiscal 2026, and we are excited to anticipate an even stronger fiscal 2027.

For all of fiscal 2026, revenue was an impressive $4.6 billion, increasing 36% from fiscal 2025, and with strong execution, net income grew even faster than revenue, producing non-GAAP EPS of $14.09 for the year.

What's most noticeable to us is that this performance did not come from any one product category or customer, but from increasing demand trends across numerous customers in multiple markets, particularly evident at customers addressing the data center market as well as those serving the communications infrastructure market.