Fabrinet (FN) investor relations material

Executive summary

• Q1 FY27 revenue reached a record $1,474.5M, up 50.8% YoY; non-GAAP diluted EPS of $4.34 also set a record and exceeded guidance.

• Broad-based demand across significant programs and new product ramps supported growth; management cited strong momentum entering Q2.

• Non-GAAP operating profit rose to $158.5M from $103.6M YoY, with operating margin increasing 20 bps to 10.8%.

Financial highlights

• GAAP net income was $103.5M, or $2.86 per diluted share; non-GAAP net income was $157.4M, or $4.34 per diluted share.

• GAAP operating income was $146.0M, up from $94.2M; gross profit was $173.8M on a GAAP basis and $178.0M on a non-GAAP basis.

• Operating cash flow was $21.3M; capital expenditures were $158.7M and non-GAAP free cash flow was negative $137.4M.

Outlook and guidance

• Q2 FY27 revenue guidance is $1.60B–$1.65B, with non-GAAP diluted EPS of $4.77–$4.92; revenue guidance implies 43% YoY growth at the midpoint.

• Growth is expected across data center, communications infrastructure, and automotive, industrial and other; efficiencies and leverage are expected to improve margins.

• Management expects operating margin to expand through FY27 and beyond; new programs are expected to contribute increasingly during the year.

• NPO revenue is expected in the latter half of FY27, while CPO is further out; OCS and NPO each could represent multi-hundred-million-dollar opportunities.