Fabrinet Posts Record Q4 2026 Revenue, Beats Estimates but Shares Slip

Fabrinet posted record fourth-quarter FY2026 results, delivering $1.316 billion in revenue, up 45% year over year, and non-GAAP earnings per share of $4.10, both ahead of guidance and consensus. The quarter capped a fiscal year in which revenue climbed 36% to $4.64 billion from $3.42 billion, with adjusted diluted EPS of $14.09 against $10.17 a year earlier. Management attributed the surge to AI-driven demand for high-speed optical interconnect.

Guidance was the stronger half of the release. Fabrinet sees fiscal Q1 2027 revenue of $1.38 billion to $1.43 billion, a $1.405 billion midpoint against roughly $1.32 billion consensus, with adjusted EPS of $4.10 to $4.25 versus about $3.99 expected . Shares still slipped more than 5% in after-hours trading, a reaction that points less at the print than at how much AI optical growth is already embedded in the multiple.

The capacity story is the one to track. On the call, management framed a path toward $12.5 billion to $14 billion of annual revenue capacity, anchored by Building 10 at the Chonburi campus: a 2 million square foot facility carrying roughly $130 million of capex that supports about $3 billion of incremental revenue. A separate conversion of office and warehouse space at Pinehurst adds roughly 120,000 square feet and a claimed $150 million of revenue upside. Note the distinction that early coverage blurred: those figures describe revenue capacity being built, not dollars being spent.

For FN, the near-term question is whether gross margin holds while that footprint scales, and whether customer concentration in optical transceivers broadens as hyperscaler orders shift between generations. Watch the fiscal Q1 print for the first read on Building 10 utilization and on whether the guidance midpoint proves conservative.

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