$FN · Fabrinet
Fabrinet reported Q1 FY2027 results with record revenue of $1.474B, up 51% YoY and above guidance. GAAP diluted EPS was $2.86 vs. $2.66 a year ago; non-GAAP diluted EPS was $4.34 vs. $2.92. The company guided Q2 revenue to $1.6B–$1.65B with non-GAAP EPS of $4.77–$4.92, and announced a $103M expansion of its share repurchase program.
- Revenue of $1.474B grew 51% YoY from $978.1M, exceeding the company's guidance range.
- Non-GAAP diluted EPS of $4.34 nearly doubled from $2.92 a year ago.
- Q2 FY2027 revenue guidance of $1.6B–$1.65B implies ~10% sequential growth at the midpoint.
- Board expanded the share repurchase program by $103M, bringing total authorization to $637.3M.
- GAAP operating income rose 55% YoY to $146M, though gross margin compressed slightly to 11.8% from 11.9%.
Extended-hours trading shows FN at $356.54, up 13.3% from the regular-session close of $314.70. The massive revenue beat and strong Q2 guide are driving a sharp after-hours rally on the $11.28B market-cap name.
Fabrinet's 51% revenue surge and Q2 guide implying sequential acceleration confirm it is a direct beneficiary of the AI-driven optical networking buildout, with scale that now rivals much larger peers.
Fabrinet's 51% revenue growth and optical-packaging demand signal robust hyperscaler/datacenter capex trends, consistent with AI-infrastructure buildout tailwinds benefiting the optical manufacturing supply chain.
The $21.6M "Other income (expense), net" loss includes a $21.5M non-marketable equity securities revaluation loss. Income tax expense surged to $26M from $5.5M YoY, partly tied to OECD Pillar Two global minimum tax implementation.