What is the market's earnings forecast for Fabrinet next quarter?

What is the revenue and EPS growth rate for Fabrinet year over year?

What does Fabrinet do and what are its main business segments?

What guidance did Fabrinet's management provide for the next earnings period?

What were the key takeaways from Fabrinet’s earnings call?

What is Fabrinet's gross profit margin?

Did Fabrinet beat or miss consensus estimates last quarter?

What were the key takeaways from Fabrinet's earnings call?

- **Revenue Record**: Q2 revenue of $1.13B (+36% YoY) driven by HPC ($86M), Telecom DCI (+42% YoY), and datacom recovery.
- **HPC Growth**: Targeting $150M+ HPC revenue with 2/3 production lines ramping; potential for additional customers and program expansion.
- **CPO & OCS**: Early-stage engagement with 3 CPO customers; excited about OCS long-term potential.
- **Capacity Expansion**: 250K sqft of Building 10 operational by mid-2026; Pinehurst conversion adds 120K sqft, supporting $300M+ annual growth.
- **Q3 Outlook**: Revenue $1.15B-$1.17B, EPS $3.45-$3.60, with sequential growth in telecom, datacom, and HPC offsetting automotive decline.

**【CEO Summary Section】**
- **Record Revenue Growth**: Q2 revenue reached $1.13 billion, up 36% YoY and 16% QoQ, driven by strong performance across all segments.
- **Segment Highlights**: 
  - Optical Communications: $833 million (+29% YoY, +11% QoQ), with Telecom DCI modules at $142 million (+42% YoY, +3% QoQ).
  - Non-Optical Communications: $300 million (+61% YoY, +30% QoQ), led by HPC revenue of $86 million.
  - Automotive: $117 million (+12% YoY, slight QoQ decline as expected).
- **Future Growth Drivers**: Continued expansion in HPC, CPO, and OCS; telecom demand (DCI, satellite), and datacom momentum. Building 10 (2M sqft) on track for mid-2026 completion.

**【CFO Financial Commentary】**
- **Earnings Performance**: Non-GAAP EPS of $3.36, up 40% YoY, despite $3M FX loss. Gross margin 12.4% (flat YoY), operating margin 10.9% (+30bps YoY).
- **Balance Sheet**: Cash of $961 million, operating cash flow $46 million. Free cash flow outflow of $5 million due to CapEx ($52 million for capacity expansion).
- **Q3 Guidance**: Revenue $1.15B-$1.17B (+30% YoY midpoint), non-GAAP EPS $3.45-$3.60 (+40% YoY midpoint). Expect sequential growth in telecom, datacom, and HPC, with modest automotive decline.

**【Q&A Highlights】**
- **HPC Ramp**: Current HPC revenue $86M, targeting $150M+ when fully ramped. Two production lines qualified, third in process. Potential for additional HPC customers and larger share of existing program.
- **CPO & OCS**: Engaged with 3 customers on CPO programs; optical circuit switches (OCS) in early stages but excited about long-term potential.
- **Datacom Constraints**: Supply constraints easing with second-source EML approval. Sequential growth expected in datacom, with 800G/1.6T modules driving demand.
- **Capacity Expansion**: 250K sqft of Building 10 (Chonburi) operational by mid-2026; Pinehurst conversion adding 120K sqft of manufacturing space. Total capacity additions support $300M+ annual revenue growth.
- **FX Impact**: Q2 saw $0.09 EPS drag from FX; similar headwinds expected in Q3, offset by operating leverage.


Fabrinet (FN) Q2 2026 Earnings Call Transcript

- **Record Q1 growth**: $978 million revenue (+22% YoY), driven by 59% telecom surge and $15 million HPC contribution.
- **Key risks**: DataCom component shortages, but telecom and HPC offsetting with 29% Q2 guidance.
- **Expansion focus**: $45 million capex for Building 10, supporting 2 million sq ft by mid-2026.

**【CEO Summary Section】**
- First-quarter revenue of $978 million, up 22% year-over-year and 8% sequentially, with record telecom and HPC contributions.
- Telecom revenue surged 59% YoY to $412 million, driven by DCI expansion and data center interconnect products.
- HPC program contributed $15 million, expected to scale significantly in future quarters.
- DataCom revenue declined 1% sequentially due to component constraints but maintained strong demand trends.

**【CFO Financial Commentary】**
- GAAP net income of $105 million, or $2.92 non-GAAP EPS, exceeding guidance with $103 million operating cash flow.
- Gross margin of 12.3%, operating margin of 10.6%, and capital expenditures of $45 million for Building 10 expansion.
- Q2 guidance: $1.05-$1.1 billion revenue and $3.15-$3.30 EPS, driven by telecom, HPC, and DataCom growth.

**【Q&A Highlights】**
- HPC program ramping with complex qualification processes and customer-specific requirements.
- Component shortages persisting but improving; telecom and HPC growth offsetting DataCom challenges.
- Building 10 expansion on track for mid-2026 completion to support 2 million sq ft capacity.

Fabrinet (FN) Q1 2026 Earnings Call Transcript

- **Record Q4 Performance**: $910M revenue (+21% YoY), $2.65 EPS beat, and $3.4B full-year revenue (+19% YoY).
- **Key Growth Drivers**: Telecom DCI ($107M, +45% YoY) and datacom 1.6T transceivers (+32% QoQ).
- **Supply Chain Challenges**: Q1 datacom dip due to 200G EML shortages, but demand remains robust.
- **Strategic Moves**: Evaluating Building 10 acceleration and AWS HPC program ramping in Q1.
- **Margin Outlook**: Q1 gross margin may face headwinds, but long-term target maintained at mid-12%.

**【CEO Summary Section】**
- Q4 revenue reached $910 million, up 21% YoY and 4% QoQ, driven by telecom and datacom growth. Full-year revenue hit $3.4 billion (+19% YoY), with non-GAAP EPS of $10.17, a record high.
- Telecom revenue grew 46% YoY to $412 million, with DCI contributing $107 million (12% of total revenue). Datacom revenue rose 10% QoQ to $277 million, driven by 1.6T transceivers.
- New HPC program with AWS began ramping in Q4, and Building 10 expansion is being evaluated to meet demand. FY2026 outlook includes strong momentum across telecom, datacom, and HPC.

**【CFO Financial Commentary】**
- Q4 GAAP net income was $96 million, with non-GAAP EPS of $2.65 (vs. $2.50 guidance). Gross margin improved to 12.5%, benefiting from operational efficiencies.
- Revenue breakdown: Optical communications ($689M, +15% YoY), Non-optical ($221M, +41% YoY), Other ($53M, +38% YoY). 800G+ products contributed $313M (+21% YoY), while below-800G products declined 18% QoQ.
- Q1 2026 guidance: Revenue $910M-$950M, EPS $2.75-$2.90. Margins may face temporary headwinds from new product ramps and seasonal costs.

**【Q&A Highlights】**
- **Component Constraints**: Datacom revenue expected to dip Q1 due to supply shortages for 200G EML-based products, but demand remains strong. Issues are temporary and being resolved with customers/suppliers.
- **Gross Margin Trends**: Q4 gross margin benefited from legacy business efficiency, but Q1 may face headwinds from new product ramps. Long-term target remains mid-12%.
- **Building 10 Expansion**: Considering accelerating construction to meet demand, potentially increasing CapEx temporarily.
- **AWS Partnership**: HPC program ramping in Q1, with potential for significant revenue growth. DCI business (400ZR/800ZR) expected to continue strong growth.
- **Tariffs Impact**: Minimal impact as tariffs are borne by customers, and products often ship outside the U.S.


Fabrinet (FN)-18 Aug 25-2025 Q4 Earnings call transcript

- **Revenue Growth**: Q3 revenue of $872 million (+19% YoY) exceeded expectations, driven by Telecom and Non-Optical Communications.
- **Amazon Partnership**: Multi-year agreement with AWS to provide advanced manufacturing services, with FY26 revenue contribution expected.
- **Telecom Momentum**: Telecom revenue up 42% YoY, supported by 400ZR demand and new system wins.
- **1.6T Transition**: Datacom decline due to product transition, but 1.6T ramp positioned for FY26 growth.
- **Automotive Strength**: Automotive revenue up 76% YoY, highlighting long-term growth in Non-Optical segment.
- **Share Repurchases**: $35 million in Q3 buybacks, with $197 million remaining under current authorization.


**【CEO Summary Section】**
- Q3 revenue of $872 million exceeded guidance, driven by 19% year-over-year growth. Non-GAAP EPS was $2.52, also above expectations.
- Telecom revenue surged 42% YoY to $406 million, fueled by 400ZR momentum and new system wins. Datacom revenue declined 16% QoQ due to a large customer product transition, but 1.6T ramp is anticipated to accelerate in FY26.
- Non-Optical Communications revenue grew 53% YoY to $215 million, with Automotive up 76% YoY and Industrial Laser up 33% YoY.
- Announced a multi-year partnership with Amazon Web Services, including a warrant purchase agreement for up to 1% of shares. This relationship is expected to contribute meaningfully to FY26 revenue.
- Repurchased $35 million in shares during Q3, with $197 million remaining under the current authorization.

**【CFO Financial Commentary】**
- Optical Communications revenue was $657 million, with Telecom accounting for 62% ($406 million) and Datacom 38% ($251 million). Below-800G products (e.g., 400ZR) grew 27% YoY, while 800G+ products declined 8% YoY due to transitioning to 1.6T.
- Non-Optical Communications revenue of $215 million included $129 million from Automotive (76% YoY growth) and $40 million from Industrial Laser (33% YoY growth).
- Gross margin was 12%, impacted by $4 million in contra-revenue from the Amazon warrant. Operating margin reached 10.2%, a new record.
- Q4 guidance: Revenue $860-900 million (midpoint +18% YoY), EPS $2.55-2.70. Guidance reflects near-term headwinds from new product ramps but positions for FY26 growth.

**【Q&A Key Points】**
- **Datacom Decline**: Q3 Datacom decline was driven by a large customer product transition, but 1.6T ramp is expected to offset this in FY26. No market share loss observed.
- **Amazon Partnership**: Initial focus on qualification builds for multiple product families, with revenue ramping in FY26. Long-term potential for expansion into other hyperscalers.
- **Telecom Growth**: ZR demand and new system wins (e.g., Ciena) are key drivers. Non-speed-rated products (e.g., legacy telecom) also contributed to growth.
- **Margin Outlook**: Q3 gross margin impacted by Amazon warrant ($4 million). Q4 expects short-term margin compression from new ramps, but FY26 outlook remains strong.
- **Building 10**: Construction on track for 18-month timeline, with potential acceleration if demand warrants.


Fabrinet (FN)-5 May 25-2025 Q3 Earnings call transcript

- **Record Q2 Results**: $834M revenue (+17% YoY), $2.61 EPS beat, fueled by telecom growth and new factory investment.
- **Capacity Expansion**: 2M sq.ft. factory adds $2.4B potential revenue, signaling long-term growth confidence.
- **Telecom Surge**: 24% YoY growth driven by ZR modules, offsetting datacom softness from 1.6T transition.
- **Share Buybacks**: $69M repurchased in Q2, $100M authorized for further returns.
- **Tariff Opportunity**: Potential to gain share if customers shift production from China-impacted suppliers.

**【CEO Summary Section】**
- Q2 revenue reached $834 million, up 17% YoY and 4% QoQ, driven by telecom growth and new product wins.
- Announced construction of a 2M sq.ft. factory (Building 10) to support long-term capacity needs, adding $2.4B in potential revenue.
- Telecom revenue surged 24% YoY and 17% QoQ, led by DCI products and new system wins.
- Datacom revenue declined 9% QoQ due to customer transition to next-gen 1.6T products, but expects recovery in coming quarters.
- Repurchased $69M of shares in Q2 and authorized an additional $100M buyback.

**【CFO Financial Commentary】**
- Non-GAAP EPS of $2.61 beat expectations, driven by revenue growth and FX gains.
- Gross margin 12.4%, stable despite FX headwinds.
- Operating income $88M (10.6% margin), up 12% YoY.
- Q3 guidance: Revenue $850-870M, EPS $2.55-2.63, with telecom and automotive growth offsetting datacom softness.
- Free cash flow $94M, with capex increasing for new factory.

**【Key Q&A Highlights】**
- **Telecom Recovery**: Telecom revenue at $348M (54% of optical) up 24% YoY, driven by ZR modules and new system wins. Expect continued strength in Q3+.
- **1.6T Product Timing**: Customer ramp expected to begin Q3/Q4, with Fabrinet ready for steep volume growth. ASPs competitive vs 800G.
- **Tariff Impact**: Potential to gain share if customers shift production from China. Fabrinet's Thailand facilities unaffected by tariffs.
- **Sienna Win**: New system win to contribute FY26+, with $257M in 800+G products showing strong momentum.
- **CapEx Outlook**: $20M+ quarterly capex for next 6-8 quarters to build new factory.


Actual											0.92	0.96	1.05	1.1	1.21	1.31	1.45	1.5	1.5	1.68	1.97	1.9	1.94	1.86	2	2.08	2.39	2.41	2.39	2.61	2.52	2.65	2.92	3.36
Forecast											0.935	0.87	0.976	1.038	1.144	1.2183	1.3284	1.4575	1.522	1.5413	1.736	1.8721	1.8753	1.7975	1.8597	2.031	2.1069	2.2428	2.3773	2.4945	2.5026	2.6383	2.8242	3.2492
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-1.60%	+10.34%	+7.58%	+5.97%	+5.77%	+7.53%	+9.15%	+2.92%	-1.45%	+9.00%	+13.48%	+1.49%	+3.45%	+3.48%	+7.54%	+2.41%	+13.44%	+7.45%	+0.53%	+4.63%	+0.70%	+0.44%	+3.39%	+3.41%

FN

FN fundamentals

FN Q2 2026 Earnings

Earnings Call

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FN

FN fundamentals

FN Q2 2026 Earnings

Earnings Call

FN Earnings Call Summary for Q2/20265:00 PM on Feb 2, 2026

FN Earnings Call Summary for Q1/20265:00 PM on Nov 3, 2025

FN Earnings Call Summary for Q4/20255:00 PM on Aug 18, 2025

FN Earnings Call Summary for Q3/20255:00 PM on May 5, 2025

FN Earnings Call Summary for Q2/20255:00 PM on Feb 3, 2025

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