Fabrinet Tops Q4 Estimates but Shares Fall

Fabrinet reported fourth quarter results that exceeded analyst expectations, though shares slid 6.7% following the announcement despite strong guidance.

The optical manufacturing services provider posted adjusted earnings per share of $4.10, surpassing the analyst consensus of $3.81 by $0.29. Revenue reached a record $1.32 billion, beating estimates of $1.27 billion and surging 45% YoY from $909.7 million in the prior-year quarter.

CEO Seamus Grady said, "Our fourth quarter was exceptional, capping off a remarkable year of accelerating growth and strong momentum. We achieved record quarterly revenue of $1.316 billion, exceeding our guidance range, and increasing 45% from a year ago."

For the first quarter of fiscal 2027, Fabrinet issued guidance that topped analyst projections. The company expects revenue between $1.38 billion and $1.43 billion, with a midpoint of $1.405 billion exceeding the consensus estimate of $1.32 billion. Adjusted EPS guidance of $4.10 to $4.25, with a midpoint of $4.18, also surpassed the analyst consensus of $3.99.

For the full fiscal year 2026, revenue increased 36% to $4.64 billion from $3.42 billion in fiscal 2025. Adjusted net income per diluted share for the year reached $14.09, compared to $10.17 in the prior year.

The company’s GAAP net income for the fourth quarter was $139.3 million, or $3.83 per diluted share, compared to $87.2 million, or $2.42 per diluted share, in the same quarter last year.