Fabrinet's Q2 2025: Diverging Insights on Telecom Trends, Datacom Ramp, and Speed Transition

These are the key contradictions discussed in Fabrinet's latest 2025Q2 earnings call, specifically including: Telecom Revenue Trends, Expectations for Datacom Product Ramp, and Transition to Higher-Speed Products:



Record Revenue and Earnings:
- Fabrinet reported record revenue of $834 million for Q2, up 17% year-on-year and 4% from Q1.
- The growth was driven by strong business momentum, with record non-GAAP earnings per share of $2.61.

Optical Communications and Telecommunications Growth:
- Optical communications revenue was $647 million, up 14% year-on-year and 3% from Q1.
- Telecommunications revenue performed particularly well, increasing 24% year-on-year and 17% sequentially.
- The growth was primarily due to increased demand for data center interconnect products and early success with new telecom systems.

Non-Optical Communications Expansion:
- Non-optical communications revenue reached $186 million, up 29% year-on-year and 5% sequentially.
- Growth was driven by strong performances in automotive and industrial laser sectors.

Capacity Expansion and Share Repurchase:
- Fabrinet announced plans to construct a new 2 million square foot facility in Chonburi, adding over 50% to their total footprint.
- The company repurchased over 1/3 of its $200 million authorized share repurchase program and received an additional $100 million authorization.
- These actions reflect confidence in future growth and capacity requirements.