Key Highlights
- The company delivered Q4 non-GAAP earnings per share of $4.10, surpassing analyst expectations of $3.81 by 7.6%
- Quarterly revenue reached $1.316 billion, representing a 45% year-over-year increase and exceeding the $1.27 billion projection
- Shares finished Monday’s session up 5% at $598.58 before tumbling 7% in after-hours trading to approximately $556
- Data center operations now represent 51% of total sales, marking the first time this segment became the dominant revenue driver
- Management projects Q1 FY2027 revenue between $1.375 billion and $1.425 billion
Despite delivering impressive fiscal fourth-quarter results that exceeded analyst projections across key metrics, Fabrinet experienced a significant decline in after-hours trading.
The optical and electronics manufacturing specialist announced non-GAAP earnings of $4.10 per share, eclipsing the Street consensus of $3.81. Quarterly sales totaled $1.316 billion, approximately $46 million higher than the anticipated $1.27 billion.
During Monday’s regular session, FN shares climbed 4.97% to finish at $598.58. However, in extended trading, the stock retreated roughly 7% to around $556, falling beneath the previous closing price of $570.22.
The quarterly sales figure represented a 45% surge compared to the same period last year. This achievement extends the company’s streak of record-breaking revenue to 12 consecutive quarters, with year-over-year growth rates accelerating for six quarters running.
For the first time in company history, data center operations surpassed the halfway mark of total revenue, comprising 51% of the $1.316 billion quarterly figure.
Diversified Customer Portfolio
Throughout fiscal 2026, Cisco, Nvidia, Nokia, and Amazon each contributed at least 10% of total revenue. This represents a more diversified customer concentration compared to previous fiscal periods.
Chief Executive Seamus Grady emphasized the balanced nature of quarterly performance. “What is most noticeable to us is that this performance did not come from any one product category or customer,” he stated.
Grady also noted that multiple new data center transceiver initiatives with fresh customers are scheduled to scale up throughout the current fiscal year.
Annual revenue for fiscal 2026 totaled $4.64 billion, climbing 36% from the prior year’s $3.42 billion. Full-year non-GAAP earnings per share increased 39% year-over-year to $14.09.
On a GAAP basis, quarterly net income reached $139.3 million, translating to $3.83 per diluted share, versus $87.2 million, or $2.42 per share, during the comparable period last year.
The company’s operating margin expanded to 10.9%, achieving its highest level in three years. Gross margin registered at 12.2%, showing modest improvement from the previous quarter while declining 30 basis points year-over-year.
Forward-Looking Guidance and Manufacturing Investments
Looking ahead to Q1 FY2027, management issued revenue guidance of $1.375 billion to $1.425 billion, with non-GAAP earnings per share projected at $4.10 to $4.25. The midpoint suggests approximately 43% year-over-year revenue expansion.
Fabrinet continues making substantial investments in production capacity. The company’s Building 10 facility in Thailand remains on schedule for early 2027 completion and is anticipated to provide $3 billion to $3.5 billion in additional revenue capacity. Meanwhile, a recently acquired Navanakorn location and Santa Clara facility expansion will each contribute between $200 million and $250 million.
Combined potential revenue capacity is projected to reach $12.5 billion to $14 billion in the long term.
Chief Financial Officer Csaba Sverha characterized the company’s position entering fiscal 2027 as having “strong momentum.” Leadership indicated that customers are providing demand projections “well out into the end of 2027 and beyond.”
The company held $876 million in cash and short-term investments at quarter’s end. Shares have traded between $272.49 and $748.89 over the past 52 weeks.
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