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olivLaw · US equity research

Fabrinet FN

Telephone & Telegraph Apparatus · SIC 3661 · Vertical: Telephone & Telegraph Apparatus (SIC 3661)

292.97USD−14.25% · 1 dayClose 05 Nov 2026

Fabrinet is an advanced optical packaging and precision manufacturing services provider for OEMs in optical communications, automotive, industrial lasers and sensors. Revenue grew 35.7% to 4.64 billion USD in fiscal 2026, and record fourth-quarter revenue reflected continued momentum into fiscal 2027.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 05 Nov 2026, Fabrinet (FN) stock was 292.97 USD (−14.25% on the day), with market capitalisation 10.5 bn USD, P/E 22.1 on diluted EPS of 13.25 USD over the last 12 months, beta 2.26, 52-week range 292.97–746.47 USD. Latest reported quarter (Q1 2027): revenue of 1.5 bn USD (+50.7% YoY), net income of 103.5 m USD (+7.9% YoY), diluted EPS 2.86 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
10.5 bn USD
shares as of 23 Oct 2026
P/E (TTM)
22.1
Diluted EPS TTM 13.25 · TTM to 25 Sept 2026
E/P (TTM)
4.52%
TTM to 25 Sept 2026
Dividend yield
unavailable
Beta (2y)
2.26
Volatility (1y) 81%
52-week range
292.97746.47

Price history

Loading chart…

Technical reading

RSI (14)
35.6
weak (30–45)
Bollinger (20, 2)
267.32 – 457.01
in the lower half of the band · %B 0.14 · band width 52.4%
SMA 50 / 200
395.99 / 521.23
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-26.21 / -23.89
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−40.1%−5.9%−34.2 pp—
3 months−46.1%−4.6%−41.5 pp—
6 months−53.2%+0.2%−53.4 pp—
Year to date−35.7%+7.4%−43.1 pp—
1 year−39.8%+8.2%−48.0 pp−15.0%
3 years+81.3%+68.4%+12.9 pp−22.8%
5 years+143.3%+56.5%+86.7 pp—
Max drawdown (1y)
−60.8%
14 May 2026 → 05 Nov 2026
Max drawdown (5y)
−60.8%
14 May 2026 → 05 Nov 2026
Compound annual growth (5y)
+19.5%
S&P 500 +9.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q1 2027 · 25 Sept 2026

Revenue
1.5 bn USD
+50.7% YoY
Net income
103.5 m USD
+7.9% YoY
Diluted EPS
2.86
+7.5% YoY
net / operating
7.0% / 9.9%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27
Revenue833.6 m871.8 m909.7 m978.1 m1.1 bn1.2 bn1.3 bn1.5 bn
Cost of revenue732.8 m769.6 m798.4 m861.7 m995.2 m1.1 bn1.2 bn1.3 bn
Gross profit100.8 m102.2 m111.3 m116.4 m137.7 m144.3 m158.1 m173.8 m
SG&A21.2 m22.1 m22.2 m22.2 m23.3 m24.3 m23.7 m26.7 m
Operating income79.6 m78.9 m89.1 m94.2 m114.4 m120.0 m134.2 m146.0 m
Depreciation & amortisation13.0 m ≈13.4 m ≈14.2 m14.9 m16.1 m ≈17.8 m ≈19.6 m21.7 m
Interest expense0000———231.0 k
Pre-tax income94.9 m86.3 m93.2 m101.4 m119.7 m134.2 m199.7 m129.5 m
Income tax8.3 m5.0 m6.0 m5.5 m7.1 m9.0 m60.5 m26.0 m
Net income86.6 m81.3 m87.2 m95.9 m112.6 m125.2 m139.3 m103.5 m
Diluted EPS2.382.252.42 ≈2.663.113.453.83 ≈2.86
Operating cash flow115.9 m ≈74.2 m ≈55.1 m102.6 m46.3 m ≈52.9 m ≈55.0 m21.3 m
Capex21.9 m ≈28.5 m ≈50.4 m45.3 m51.6 m ≈63.8 m ≈91.9 m158.7 m
Share repurchases68.7 m ≈34.8 m ≈22.3 m268.0 k4.8 m ≈151.0 k ≈029.1 m

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 57 percentile of its own 40-quarter history (min 12.2, median 20.3, max 47.4; quarters with earnings only).

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue1.6 bn1.6 bn1.9 bn2.3 bn2.6 bn2.9 bn3.4 bn4.6 bn
Revenue YoY+15.5%+3.6%+14.5%+20.4%+16.9%+9.0%+18.6%+35.7%
Net income121.0 m113.5 m148.3 m200.4 m247.9 m296.2 m332.5 m473.0 m
Net income YoY+43.7%−6.2%+30.7%+35.1%+23.7%+19.5%+12.3%+42.3%
Diluted EPS3.233.013.955.366.738.109.1713.05
Diluted EPS YoY+46.2%−6.8%+31.2%+35.7%+25.6%+20.4%+13.2%+42.3%
net %7.6%6.9%7.9%8.9%9.4%10.3%9.7%10.2%
Free cash flow128.7 m108.3 m76.1 m34.7 m152.0 m365.6 m207.3 m4.2 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 26 Jun 2026

Cash
346.7 m USD
Financial debt
0 USD
Net debt
-346.7 m USD
Equity
2.5 bn USD
Total assets
3.9 bn USD
Debt / equity
0.00x
Current ratio
2.25x
ROE
21.3%
ROA
14.0%
FCF margin
0.1%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
2.9 bn
2025
3.4 bn
2026
4.6 bn

SEC (XBRL)· 18 Aug 2026verified

Cost of revenue
2024
2.5 bn
2025
3.0 bn
2026
4.1 bn

SEC (XBRL)· 18 Aug 2026verified

Gross profit
2024
356.1 m
2025
413.3 m
2026
556.5 m

SEC (XBRL)· 18 Aug 2026verified

SG&A
2024
78.5 m
2025
87.5 m
2026
93.5 m

SEC (XBRL)· 18 Aug 2026verified

Operating income
2024
277.6 m
2025
324.4 m
2026
462.9 m

SEC (XBRL)· 18 Aug 2026verified

Depreciation & amortisation
2024
49.0 m
2025
53.4 m
2026
68.4 m

SEC (XBRL)· 18 Aug 2026verified

EBITDA
2024
326.6 m ≈
2025
377.9 m ≈
2026
531.3 m ≈

SEC (XBRL)· 18 Aug 2026derived

Interest expense
2024
124.0 k
2025
0
2026
84.0 k

SEC (XBRL)· 18 Aug 2026verified

Pre-tax income
2024
311.4 m
2025
355.2 m
2026
555.1 m

SEC (XBRL)· 18 Aug 2026verified

Income tax
2024
15.2 m
2025
22.7 m
2026
82.1 m

SEC (XBRL)· 18 Aug 2026verified

Net income
2024
296.2 m
2025
332.5 m
2026
473.0 m

SEC (XBRL)· 18 Aug 2026verified

Diluted EPS
2024
8.10
2025
9.17
2026
13.05

SEC (XBRL)· 18 Aug 2026verified

Weighted average diluted shares
2024
36.6 m
2025
36.3 m
2026
36.3 m

SEC (XBRL)· 18 Aug 2026verified

Balance sheet · USD

Cash
2024
410.0 m
2025
306.4 m
2026
346.7 m

SEC (XBRL)· 18 Aug 2026verified

Receivables
2024
592.5 m
2025
758.9 m
2026
1.0 bn

SEC (XBRL)· 18 Aug 2026verified

Inventories
2024
463.2 m
2025
581.0 m
2026
1.0 bn

SEC (XBRL)· 18 Aug 2026verified

Current assets
2024
2.0 bn
2025
2.4 bn
2026
3.2 bn

SEC (XBRL)· 18 Aug 2026verified

Property, plant & equipment, net
2024
307.2 m
2025
380.6 m
2026
615.1 m

SEC (XBRL)· 18 Aug 2026verified

Intangibles (excl. goodwill)
2024
2.3 m
2025
2.2 m
2026
2.5 m

SEC (XBRL)· 18 Aug 2026verified

Total assets
2024
2.3 bn
2025
2.8 bn
2026
3.9 bn

SEC (XBRL)· 18 Aug 2026verified

Short-term debt
2024
0
2025
—
2026
0

SEC (XBRL)· 03 Nov 2026verified

Long-term debt
2024
—
2025
—
2026
0

SEC (XBRL)· 03 Nov 2026verified

Current liabilities
2024
557.9 m
2025
809.8 m
2026
1.4 bn

SEC (XBRL)· 18 Aug 2026verified

Total liabilities
2024
592.8 m
2025
849.6 m
2026
1.5 bn

SEC (XBRL)· 18 Aug 2026verified

Equity
2024
1.7 bn †
2025
2.0 bn †
2026
2.5 bn †

SEC (XBRL)· 18 Aug 2026verified

Cash flow · USD

Operating cash flow
2024
413.1 m
2025
328.4 m
2026
256.7 m

SEC (XBRL)· 18 Aug 2026verified

Capex
2024
47.5 m
2025
121.1 m
2026
252.5 m

SEC (XBRL)· 18 Aug 2026verified

Free cash flow
2024
365.6 m ≈
2025
207.3 m ≈
2026
4.2 m ≈

SEC (XBRL)· 18 Aug 2026derived

Investing cash flow
2024
-169.8 m
2025
-286.3 m
2026
-183.6 m

SEC (XBRL)· 18 Aug 2026verified

Financing cash flow
2024
-64.9 m
2025
-147.0 m
2026
-30.7 m

SEC (XBRL)· 18 Aug 2026verified

Share repurchases
2024
39.5 m
2025
125.7 m
2026
5.2 m

SEC (XBRL)· 18 Aug 2026verified

Computed indicators

Growth

Revenue growth (YoY)
35.7%
computed by olivLawFY 2026
Revenue CAGR 3Y
20.6%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
19.8%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
42.7%
computed by olivLawFY 2026
Net income growth (YoY)
42.3%
computed by olivLawFY 2026
Net income CAGR 3Y
24.0%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
26.1%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
42.3%
computed by olivLawFY 2026
EPS CAGR 3Y
24.7%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
27.0%
computed by olivLawFY 2021 → FY 2026
FCF growth (YoY)
-98.0%
computed by olivLawFY 2026

Profitability

Gross margin
11.9%
computed by olivLawTTM to 25 Sept 2026
EBITDA margin
11.5%
computed by olivLawTTM to 25 Sept 2026
EBIT margin
10.0%
computed by olivLawTTM to 25 Sept 2026
Net margin
9.4%
computed by olivLawTTM to 25 Sept 2026
FCF margin
-3.7%
computed by olivLawTTM to 25 Sept 2026

Returns

ROE
21.0%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
ROA
13.1%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
ROIC
19.3%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
ROCE
19.5%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-317.6 m USD
computed by olivLawbalance sheet at 25 Sept 2026
Net debt / EBITDA
-0.5x
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
Debt / equity
0.0x
computed by olivLawbalance sheet at 25 Sept 2026
Interest coverage
1,634.0x
computed by olivLawTTM to 25 Sept 2026

Liquidity

Current ratio
2.0x
computed by olivLawbalance sheet at 25 Sept 2026
Cash ratio
0.2x
computed by olivLawbalance sheet at 25 Sept 2026

Cash

Operating cash flow
175.4 m USD
computed by olivLawTTM to 25 Sept 2026
Capital expenditure
365.9 m USD
computed by olivLawTTM to 25 Sept 2026
Free cash flow
-190.5 m USD
computed by olivLawTTM to 25 Sept 2026
FCF conversion
-39.6%
computed by olivLawTTM to 25 Sept 2026
Cash conversion
29.7%
computed by olivLawTTM to 25 Sept 2026

Efficiency

Days sales outstanding
66 days
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
Days payables outstanding
unavailable
input data missing

Market and valuation

Market capitalisation
10.5 bn USD
computed by olivLawbalance sheet at 25 Sept 2026
Enterprise value
10.1 bn USD
computed by olivLawbalance sheet at 25 Sept 2026
Market cap / net income TTM
21.8x
computed by olivLawTTM to 25 Sept 2026
P/E (TTM)
22.1x
computed by olivLawTTM to 25 Sept 2026
Earnings yield
4.5%
computed by olivLawTTM to 25 Sept 2026
P/B
4.2x
computed by olivLawbalance sheet at 25 Sept 2026
P/S
2.0x
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
EV/EBITDA
17.2x
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
EV/EBIT
19.7x
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
EV/Sales
2.0x
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-1.8%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
Dividend yield
unavailable
input data missing
Shareholder yield (distributions)
0.3%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026

4 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

292.97 USD

05 Nov 2026Source: olivLaw, closing series

Market cap: 10.5 bn USD

Key indicators

Market capitalisation
10.5 bn USD
computed by olivLawbalance sheet at 25 Sept 2026
P/E (TTM)
22.1x
computed by olivLawTTM to 25 Sept 2026
P/B
4.2x
computed by olivLawbalance sheet at 25 Sept 2026
EV/EBITDA
17.2x
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
ROE
21.0%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
Net margin
9.4%
computed by olivLawTTM to 25 Sept 2026
Revenue growth (YoY)
35.7%
computed by olivLawFY 2026
Dividend yield
unavailable
input data missing

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 25 Sept 2026
Latest balance sheet date: 25 Sept 2026
Share count (cover of the latest filing), as of: 23 Oct 2026
Source: SEC (XBRL)published 03 Nov 2026
verified 2445derived 189

Score by group

100% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · the base of the ratio is not positive
  • Peers: EV/Salesunavailable · not enough peers
  • Peers: EV/EBITDAunavailable · not enough peers

no valuation method could be computed

Multiple comparisons use the SIC vertical: Telephone & Telegraph Apparatus (SIC 3661)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
Gross margin · Quality11.9%0 (on a fixed band)11%
EBIT margin · Quality10.0%83 (vs peers)9%
FCF margin · Quality-3.7%0 (on a fixed band)9%
Revenue CAGR 3Y · Growth20.6%82 (on a fixed band)17%
Revenue growth (YoY) · Growth35.7%100 (vs peers)9%
Net debt / EBITDA · Balance sheet-0.5x100 (on a fixed band)6%
Current ratio · Balance sheet2.0x73 (on a fixed band)6%
EV/Sales · Valuation2.0x100 (on a fixed band)17%
FCF yield · Valuation-1.8%0 (on a fixed band)13%
Shareholder yield (distributions) · Returns0.3%39 (on a fixed band)4%

Score groups

  • Balance sheet86/100 · 2/2 factors with a value
  • Growth88/100 · 2/2 factors with a value
  • Quality26/100 · 3/3 factors with a value
  • Returns39/100 · 1/1 factors with a value
  • Valuation57/100 · 2/2 factors with a value

Memo

FABRINET (FN). Latest full fiscal year: 2026; data up to 2026-09-25.

Figures computed from the financial statements: revenue 4.6 bn USD in 2026; YoY growth 35.7%; net margin 9.4%; ROE 21.0%; net debt/EBITDA -0.5x.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • EBIT margin: 10.0%
  • Revenue CAGR 3Y: 20.6%
  • Revenue growth (YoY): 35.7%
  • Net debt / EBITDA: -0.5x
  • Current ratio: 2.0x
  • EV/Sales: 2.0x

What contradicts it

  • Gross margin: 11.9%
  • FCF margin: -3.7%
  • FCF yield: -1.8%

Versus the vertical median

Telephone & Telegraph Apparatus (SIC 3661) · same industry (4-digit SIC) · compared with 7 companies

Multiples and returns vs the median

P/E
22.1x
vertical median —
EV/EBITDA
17.2x
vertical median —
P/S
2.0x
vertical median 0.8x
above median (+160.6%)
P/B
4.2x
vertical median 1.6x
above median (+162.2%)
ROE
21.0%
vertical median -8.8%
above median
Net margin
9.4%
vertical median -3.4%
above median
EBIT margin
10.0%
vertical median -0.1%
above median
Revenue YoY
35.7%
vertical median 9.4%
above median (+278.6%)
Net debt/EBITDA
-0.5x
vertical median —
Dividend yield
—
vertical median 3.3%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
CIENCiena Corp32.7 bn51.522.4%10.9%+18.8%+13% / +403%
FNFabrinet10.5 bn22.121.0%9.4%+35.7%−40% / +81%
CLFDClearfield, Inc.390.1 m—-2.8%-4.7%+19.6%−2% / +13%
ADTNADTRAN Holdings, Inc.336.6 m—-19.2%-2.2%+17.5%−48% / −21%
AUDCAudiocodes Ltd.207.2 m24.74.9%3.6%+1.4%−15% / −32%
FKWLFranklin Wireless Corp.26.3 m—-14.9%-13.0%−20.8%−50% / −23%
CLROClearone Inc12.1 m—-275.7%—unavailable−14% / −63%
SONMDNA X, Inc.3.4 m——-14.5%−37.7%−60% / −98%

1- and 3-year price returns: for FN from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
194.41
Total return -34% · Per year -34%
342.13
Total return 17% · Per year 17%
513.20
Total return 75% · Per year 75%
3 years
230.60
Total return -21% · Per year -8%
452.47
Total return 54% · Per year 16%
739.01
Total return 152% · Per year 36%
5 years
273.53
Total return -7% · Per year -1%
598.39
Total return 104% · Per year 15%
1,064.17
Total return 263% · Per year 29%
What moves the 3-year price the most
  • Exit P/E± 113.12
  • Net margin± 79.18
  • Annual revenue growth± 59.06
  • Annual dilution± 6.65

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 18 Aug 2026; since then the company filed 10-Q (03 Nov 2026), 8-K (02 Nov 2026 · results).

In brief

Fabrinet is an advanced optical packaging and precision manufacturing services provider for OEMs in optical communications, automotive, industrial lasers and sensors. Revenue grew 35.7% to 4.64 billion USD in fiscal 2026 1, and record fourth-quarter revenue reflected continued momentum into fiscal 2027 2.

SWOT

Strengths

  • The company has differentiated optical packaging and integration technologies, and many customers rely on it as their only outsourced manufacturer 1.
  • Vertical integration into customized optics and glass supports customer products and reduces the number of suppliers needed 1.
  • Rapid revenue and profit growth in recent quarters shows strong business momentum 2.

Weaknesses

  • Dependence on a small number of major customers makes revenue vulnerable to lost or reduced orders 1.
  • Most revenue comes from Asia-Pacific, and operating across several countries adds complexity 1.
  • Orders are typically short-term, with no firm commitments beyond 13 weeks, which makes planning difficult 1.

Opportunities

  • Diversifying into semiconductor processing, biotechnology and metrology could reduce reliance on optical communications 1.
  • New product introduction centres in Silicon Valley and Israel could win new business transferred to Thailand for volume production 1.
  • Expanding customer bases in Europe, Asia-Pacific and the Middle East could open new markets 1.

Threats

  • Industry consolidation could reduce demand or increase pricing pressure 1.
  • Better-resourced competitors could offer similar products at more aggressive prices 1.
  • Changes in trade policies could affect supply chains and customer demand 2.

Risks

  • Customer concentrationhigh

    Loss or reduction of orders from a major customer could significantly affect revenue 1.

  • Quarterly volatilitymedium

    Revenue and margins have fluctuated significantly from quarter to quarter, making comparisons difficult 1.

  • Supply chain disruptionmedium

    Shortages from sole-source suppliers can raise costs and reduce gross margin 12.

  • Asian labor costsmedium

    Wage increases and currency fluctuations in Asia could reduce operating profitability 1.

  • Customer credit risklow

    Financially stressed customers could lead to inventory write-offs and unrecoverable receivables 1.

Investment thesis

What would need to be true (bull case)

  • If demand for data center and communications products continues to grow, the company could sustain its revenue growth 12.
  • Non-GAAP earnings per share reached a record in fiscal 2026, indicating operating efficiency 2.
  • Diversification into new markets could reduce dependence on any single segment over time 1.

What would break the thesis

  • Concentration of revenue in a few large customers leaves the company exposed to their decisions 1.
  • The optical market has periods of overcapacity, and a slowdown in demand could quickly affect results 1.
  • Large customers have strong negotiating power, which could pressure margins in future 1.

What to watch

  • Actual results against first-quarter revenue guidanceQ1 2027
  • Trend in gross margin and labor costs in Thailand and China2027
  • Share of major customers in total revenue in the next annual reportnext 10-K
  • Progress in diversifying into semiconductor and biotechnology markets2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 18 Aug 2026; since then the company filed 10-Q (03 Nov 2026), 8-K (02 Nov 2026 · results).

The business

Fabrinet provides OEMs with process design, supply chain management, manufacturing, printed circuit board assembly, advanced optical packaging, integration and testing for complex products 1. The company builds components and modules for optical communications, industrial lasers, automotive parts, medical devices and sensors, and in some cases is the sole outsourced manufacturing partner of its customers 1. It also makes customized optics and glass, which it either incorporates into customer products or sells on the merchant market 1.

Segments

Data center

This is the largest segment, at 47.9% of fiscal 2026 revenue versus 46.2% in fiscal 2025 1. It includes optical interconnect products such as active optical cables for data centers and computing clusters 1.

Automotive, industrial and other

This segment represented 18.8% of fiscal 2026 revenue, down from 23.1% in fiscal 2025 1. It includes automotive sensors, industrial lasers and medical sensing products 1.

Market context

Fabrinet's market is driven by bandwidth demand, data center expansion and OEM outsourcing of production 1. The company argues that the automotive, industrial laser and sensor markets are substantially larger than the optical communications components market 1. More than 77% of fiscal 2026 revenue was shipped to customers outside North America 1.

Trends

  • Data center growthtailwind

    Demand for high-speed optical connectivity in data centers has grown quickly and is now the largest revenue source 1. If this growth continues, it could support demand for the company's services 1.

  • OEM outsourcingtailwind

    Optical and laser equipment makers increasingly outsource manufacturing to specialist partners, opening new opportunities for the company 1.

  • Customer consolidationheadwind

    Acquisitions among customers reduce the number of potential buyers and increase their negotiating power, adding pricing pressure 1.

  • Labor costs in Thailand and Chinamixed

    Rising wages in Thailand and China could reduce profit margins, though the company seeks to offset this through productivity gains 1.

Competitive position

The main competition comes from customers' internal manufacturing capacity, which they may choose to use instead of outsourcing 1. Other competitors in optical manufacturing services include large electronics manufacturing services firms and specialised Chinese producers 1. Many competitors have longer histories and greater financial resources 1.

  • Benchmark ElectronicsBHE

    Named as an optical manufacturing services competitor in the filing 1.

  • CelesticaCLS

    Named as an optical manufacturing services competitor in the filing 1.

  • JabilJBL

    Named as an optical manufacturing services competitor in the filing 1.

  • SanminaSANM

    Named as an optical manufacturing services competitor in the filing 1.

News & filings

In the press

The latest news item in our archive is from 02 Nov 2026; the newest SEC filing is from 03 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-06-26 · SEC / Fabrinet · 18 Aug 2026
  2. [2] Form 8-K, results release (exhibit 99.1) · SEC / Fabrinet · 17 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.