Fabrinet (FN) Q4 2026 earnings summary

Executive summary

• Achieved record Q4 revenue of $1.316 billion, up 45% year-over-year and above guidance, with broad-based growth across data center, communications infrastructure, and automotive/industrial markets.

• Fiscal 2026 revenue reached $4.64 billion, a 36% increase from fiscal 2025.

• Non-GAAP EPS for Q4 was $4.10, and for the year $14.09, both exceeding guidance and up from $2.65 and $10.17, respectively, a year ago.

• Multiple sustainable growth drivers, new program wins, and strong business momentum are fueling performance into fiscal 2027.

• Demonstrated consistent growth and profitability, supported by a strong balance sheet and experienced management.

Financial highlights

• Q4 gross margin was 12.2%, up 10 bps sequentially but down 30 bps year-over-year; Q4 operating margin reached 10.9%, the highest in three years.

• Q4 non-GAAP net income was $149.1 million ($4.10 per share); GAAP net income was $139.3 million ($3.83 per share).

• Full-year non-GAAP EPS grew to $14.09; FY26 GAAP net income was $473.0 million, GAAP EPS $13.05.

• Ended Q4 with $875.8 million in cash and equivalents; total shareholders' equity was $2.46 billion as of June 26, 2026.

• FY26 gross margin (GAAP): 12.0%; non-GAAP gross margin: 12.2%.

Outlook and guidance

• Q1 fiscal 2027 revenue expected between $1.375 billion and $1.425 billion, up 43% year-over-year at midpoint.

• Q1 EPS guidance is $4.10 to $4.25 (non-GAAP); GAAP EPS guidance: $3.39–$3.54.

• Management expresses high confidence in long-term demand trends and visibility into fiscal 2027 and beyond.

• Guidance excludes share-based compensation and certain non-recurring items.

• Addressable markets remain large and growing, with focus on next-generation products and OEM relationships.