Fabrinet (NYSE:FN) Issues Quarterly Earnings Results, Beats Expectations By $0.14 EPS

Fabrinet (NYSE:FN) released its quarterly earnings results on Monday. The technology company reported $3.72 earnings per share for the quarter, beating the consensus estimate of $3.58 by $0.14, FiscalAI reports. Fabrinet had a net margin of 9.94% and a return on equity of 20.38%. The business had revenue of $1.21 billion for the quarter, compared to analysts’ expectations of $1.19 billion. During the same quarter in the previous year, the business posted $2.52 earnings per share. The firm’s revenue for the quarter was up 39.3% compared to the same quarter last year. Fabrinet updated its Q4 2026 guidance to 3.720-3.870 EPS.

Here are the key takeaways from Fabrinet’s conference call:

• Record quarter: Fabrinet reported revenue of $1.214 billion (up 39% YoY) and record non?GAAP EPS of $3.72, with both results beating guidance.
• Datacom supply constraints: Broad component shortages (lasers, memory and certain ASICs) limited shipments so reported Datacom revenue understates demand, and management expects the supply imbalance to persist into Q4.
• New Datacom wins: The company has qualified and begun shipping two 800G scale?out transceiver programs to a hyperscaler and expects multiple merchant transceiver ramps to start production in the back half of the calendar year, contributing more meaningfully in fiscal 2027.
• Capacity and strategic investments: Fabrinet is accelerating capacity buildout (Building 10 adds 2M sq ft with partial floors coming online this year), made a $32M minority investment in Raytek Semiconductor to support CPO capabilities, and acquired a 200k sq ft Navanakorn site — moves management says position the company to scale toward several billion dollars of additional revenue capacity.

Fabrinet Price Performance

Shares of Fabrinet stock opened at $658.45 on Wednesday. The company has a 50-day moving average of $590.96 and a 200 day moving average of $506.78. The firm has a market cap of $23.59 billion, a price-to-earnings ratio of 56.57 and a beta of 1.22. Fabrinet has a 1 year low of $193.54 and a 1 year high of $734.79.

Analysts Set New Price Targets

Several equities research analysts have recently commented on FN shares. Weiss Ratings cut shares of Fabrinet from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, April 8th. JPMorgan Chase & Co. decreased their price target on shares of Fabrinet from $700.00 to $680.00 and set a “neutral” rating for the company in a research note on Tuesday. Rosenblatt Securities raised their price objective on shares of Fabrinet from $715.00 to $750.00 and gave the stock a “buy” rating in a report on Tuesday. Northland Securities set a $800.00 price objective on Fabrinet in a research report on Monday, April 20th. Finally, Fox Advisors downgraded Fabrinet from a “strong-buy” rating to an “equal weight” rating in a report on Tuesday. Five analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Fabrinet presently has an average rating of “Moderate Buy” and an average target price of $661.75.

Key Fabrinet News

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Q3 results beat expectations — revenue grew ~39% year?over?year and EPS topped estimates, driven by strength in Optical/Telecom and HPC end markets. Fabrinet Announces Third-Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Catalyst from bullish broker views — Rosenblatt raised its price target to $750 (buy) and Needham reaffirmed a buy with a $800 target, giving analysts-side confidence in longer?term demand outlook. Needham Reaffirms Buy / Price Target Notice
• Neutral Sentiment: Company provided Q4 guidance (EPS $3.72–3.87; revenue roughly $1.25B–$1.29B / ~ $1.3B range) that is largely in?line with consensus, leaving limited surprise potential. Management noted ongoing datacom supply constraints even as program ramps continue. Fabrinet forecasts $1.25B-$1.29B Q4 revenue as datacom supply constraints persist
• Negative Sentiment: Market sold off despite the beat — investors treated the quarter as a “sell?the?news” event because guidance left little room for upside after an extended run, prompting profit?taking and multiple compression. Fabrinet Stock Tumbles Despite Q3 Earnings, Revenue Beats
• Negative Sentiment: JPMorgan trimmed its price target to $680 and moved to a neutral rating, reducing an influential buy-side bull case and likely weighing on sentiment. JPMorgan Price Target Note
• Negative Sentiment: Operational/cash concerns flagged by data providers — some reports show a sharp drop in operating cash flow and a big increase in capex alongside insider selling activity, which added to near?term worries about free cash generation and dilution of the beat. Fabrinet slides despite Q3 beat as Q4 outlook looks mostly in-line

Hedge Funds Weigh In On Fabrinet

A number of institutional investors and hedge funds have recently made changes to their positions in FN. Quarry LP boosted its position in shares of Fabrinet by 300.0% in the 4th quarter. Quarry LP now owns 72 shares of the technology company’s stock worth $33,000 after purchasing an additional 54 shares in the last quarter. Acumen Wealth Advisors LLC bought a new stake in Fabrinet in the fourth quarter worth $37,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Fabrinet in the fourth quarter worth $42,000. Strive Financial Group LLC bought a new position in shares of Fabrinet during the fourth quarter valued at $49,000. Finally, Larson Financial Group LLC raised its position in shares of Fabrinet by 25.8% in the 3rd quarter. Larson Financial Group LLC now owns 161 shares of the technology company’s stock worth $59,000 after purchasing an additional 33 shares during the last quarter. Institutional investors own 97.38% of the company’s stock.

Fabrinet Company Profile

Fabrinet is a global provider of advanced optical packaging and precision optical, electro?mechanical and electronic manufacturing services (CEM). The company specializes in complex manufacturing processes for original equipment manufacturers (OEMs) in communications, data center, industrial, instrumentation and medical markets. Key capabilities include high?precision fiber alignment, micro?assembly, testing and diagnostics, and integration of electro?optic subassemblies.

Incorporated in 2000, Fabrinet operates under a corporate structure headquartered in Singapore with additional regional offices and design centers in the Americas, Europe and Asia.