Fabrinet (FN) Q4 FY2026 Earnings Call: Data Center Revenue Jumps 68%
Source Tradingkey
Key Takeaways
- Fabrinet (NYSE: FN) reported fiscal Q4 2026 revenue of $1.316 billion, up 45% year over year and above the high end of management’s guidance. Non-GAAP diluted EPS reached $4.10.
- Full-year fiscal 2026 revenue increased 36% to $4.6 billion, while non-GAAP EPS rose 39% to $14.09.
- Data center revenue grew 68% year over year and 13% sequentially to $669 million, accounting for 51% of total revenue. DCI reached an annualized revenue run rate exceeding $1 billion.
- For fiscal Q1 2027, management guided to revenue of $1.375 billion to $1.425 billion and non-GAAP EPS of $4.10 to $4.25. The revenue midpoint implies approximately 43% year-over-year growth.
- Fabrinet is expanding capacity in Thailand and Silicon Valley. Management said its current plans could raise annual revenue capacity from a fiscal Q4 exit run rate of approximately $5.3 billion to $12.5 billion-$14 billion over the coming years.
- Management said strong demand spans DCI, transceivers, high-performance computing, communications infrastructure and new program ramps, while customer forecasts provide visibility into fiscal 2027 and beyond. These forecasts are not firm orders.
Core Financial Data
| Metric | Fiscal Q4 2026 | Change / Commentary |
|---|---|---|
| Revenue | $1.316 billion | Up 45% year over year; above guidance |
| Non-GAAP gross margin | 12.2% | Up 10 bps sequentially; down 30 bps year over year |
| Non-GAAP operating expenses | 1.2% of revenue | Supported operating leverage |
| Non-GAAP operating margin | 10.9% | Highest level in three years |
| GAAP net income | $139 million | $3.83 per diluted share |
| Non-GAAP net income | $149 million | $4.10 per diluted share |
| Operating cash flow | $55 million | — |
| Capital expenditure | $92 million | Included capacity expansion and the Nava Nakorn campus purchase |
| Free cash flow | $(37) million | Outflow during the quarter |
| Cash and short-term investments | $876 million | Down $70 million sequentially |
| Full-Year Metric | Fiscal 2026 | Year-over-Year Change |
|---|---|---|
| Revenue | $4.6 billion | +36% |
| Non-GAAP EPS | $14.09 | +39% |
| Operating cash flow | $257 million | — |
| Free cash flow | $4 million | — |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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