Fabrinet's Q4 2025 Earnings Call: Key Contradictions in Datacom and Telecom Revenue Projections

Impact of component shortages on Datacom, Amazon revenue ramp and categorization, datacom revenue and growth expectations, supply chain constraints and their impact on Datacom, telecom revenue and growth are the key contradictions discussed in Fabrinet's latest 2025Q4 earnings call.



Record Revenue and Earnings:
- Fabrinet reported a record revenue of $910 million for Q4, above guidance and up more than 20% from a year ago, with non-GAAP earnings reaching $2.65 per share.
- The growth was driven by strong performance in optical communications and the ramp-up of a new telecom system program.

Optical Communications Growth:
- Optical communications revenue reached $689 million, up 15% from a year ago, with telecom revenue increasing 46% from a year ago.
- The growth was primarily due to strong demand for data center interconnect (DCI) products and system programs.

Datacom Revenue Trends:
- Datacom revenue was $277 million, down 12% from a year ago but grew 10% sequentially.
- The sequential growth was driven by strong demand for new higher data rate products like 1.6T, though there were component supply constraints affecting growth.

Automotive and Industrial Laser Segment:
- Automotive revenue was $128 million, with only a slight sequential decline following previous quarters of rapid growth.
- Industrial laser revenue remained stable at $40 million, reflecting consistent performance within this segment.