Research Reports

Prepared Highlights

Q4 FY2025 revenue was $910M, above guidance, up >20% YoY and 4% QoQ (CEO); full-year FY2025 revenue record $3.4B, up 19% YoY (CEO)
Non-GAAP EPS Q4: $2.65 (record); full-year: $10.17 (record) (CEO)
Optical communications revenue Q4: $689M, up 15% YoY, 5% QoQ (CFO)
- Telecom: $412M, up 46% YoY, 1% QoQ; DCI revenue $107M (12% of total revenue), up 45% YoY (CEO, CFO)
- Datacom: $277M, down 12% YoY, up 10% sequentially; 1.6T transceiver volume shipments began (CEO, CFO)
800G & faster products revenue: $313M, up 21% YoY, 32% QoQ (CFO)
Non-optical communications revenue Q4: $221M, up 41% YoY, 3% QoQ (CFO)
- Automotive: $128M (slight sequential decline); Industrial laser: $40M (stable); Other: $53M (CFO)
Gross margin Q4: 12.5% (better than anticipated) (CFO)
Operating margin Q4: 10.7% (record, +50 bps QoQ) (CFO)
CapEx Q4: $50M (driven by Building 10 construction and program ramps); Free cash flow: $5M (CFO)
FY2025 customer concentration: NVIDIA 28%, Cisco 18% of revenue; top 10 customers 86% (CFO)
Share repurchases FY2025: $126M (record); Q4: 108K shares at avg $206, total $22M; $174M remaining for FY2026 (CFO)
Official guidance (Q1 FY2026):
- Revenue: $910M–$950M (CFO)
- Non-GAAP EPS: $2.75–$2.90 (CFO)
- Gross margin expected within mid-5% target range; seasonal merit increases create ~10–20 bps pressure (CFO)
Mgmt quotes:
- “We had an excellent fourth quarter, ending an outstanding year with tremendous momentum.” (CEO)
- “With multiple growth drivers providing clear visibility toward reaching $1 billion in quarterly revenue, we are now evaluating options to accelerate the completion of a portion of Building 10.” (CEO)
- “We are very optimistic about datacom growth trends for fiscal 2026.” (CEO)
- “We anticipate healthy year-over-year and sequential growth in the first quarter.” (CFO)
- “This is an exciting time at Fabrinet… we are highly optimistic about Q1 and the new fiscal year ahead.” (CFO)

Prepared Metrics

Metric	Value	Speaker/Context
Q4 Revenue	$910M	CFO – above guidance, +21% YoY, +4% QoQ
Full-Year FY2025 Revenue	$3.4B	CEO – record, +19% YoY
Q4 Non-GAAP EPS	$2.65	CFO – record; includes $0.10 FX loss
Full-Year Non-GAAP EPS	$10.17	CEO – record
Q4 Telecom Revenue	$412M	CFO – +46% YoY, +1% QoQ
Q4 DCI Revenue	$107M	CFO – 12% of total revenue, +45% YoY
Q4 Datacom Revenue	$277M	CFO – -12% YoY, +10% QoQ
Q4 800G+ Products Revenue	$313M	CFO – +21% YoY, +32% QoQ
Q4 Non-Optical Revenue	$221M	CFO – +41% YoY, +3% QoQ
Q4 Gross Margin	12.5%	CFO – better than anticipated
Q4 Operating Margin	10.7%	CFO – record, +50 bps QoQ
Q4 CapEx	$50M	CFO – Building 10 & program ramps
Q4 Free Cash Flow	$5M	CFO
FY2025 NVIDIA Revenue Share	28%	CFO – >10% customer
FY2025 Cisco Revenue Share	18%	CFO – >10% customer
FY2025 Share Repurchases	$126M	CFO – record
Remaining Buyback Authorization	$174M	CFO – entering FY2026
Q1 FY2026 Revenue Guidance	$910M–$950M	CFO
Q1 FY2026 Non-GAAP EPS Guidance	$2.75–$2.90	CFO

Q&A Batch (1–5 of 8)

Q1 — Karl Ackerman

Topic: HPC归类澄清及未来数据中心增长向量
Key points:
- HPC（高性能计算）不属于datacom，Q4归类在“其他”，Q1起单独报告。
- 主要客户的收发器机会以1.6T为主，其他datacom客户同时覆盖800G和1.6T。
- 公司正推进四个增长向量：最大datacom客户、其他自有设计客户、商售收发器供应商、超大规模直供。
Mgmt stance: bullish，因多个增长向量并行且主动拓展。

Q2 — Timothy Paul Savageaux

Topic: FY26增长预期、Building 10加速及新电信系统贡献
Key points:
- FY25营收增长19%，且最大客户收入同比下降；对FY26持乐观态度，但仅提供逐季指引。
- Building 10部分空间计划提前3–6个月启用，将影响CapEx。
- 新电信系统已在Q4贡献收入，但主要爬坡仍在FY26。
Mgmt stance: bullish，因datacom需求超供应、1.6T需求强劲、电信趋势持续。

Q3 — Joseph Lima Cardoso

Topic: 毛利率与OpEx展望、800G/1.6T供应限制
Key points:
- 目标维持毛利率在**mid-12%**区间；新项目爬坡带来临时压力，Q1受季节性调薪及新项目启动成本影响。
- OpEx保持谨慎，仅含常规调薪，有望随收入增长提升运营杠杆。
- 供应限制集中于1–2个组件（200G/信道EML相关），预计1–2个季度内解决，需求远超供应。
Mgmt stance: neutral（短期有临时压力，但视为暂时性，整体需求乐观）。

Q4 — Steven Bryant Fox

Topic: Q4毛利率超预期原因、组件短缺影响、DCI业务趋势
Key points:
- Building 10尚未产生费用；Q4毛利率好于预期主要因现有业务执行效率超计划，新项目启动成本低于预期。
- 组件短缺在Q4影响很小，主要冲击在Q1；短缺对毛利率无直接负面影响（可调配产能）。
- DCI业务YoY增长45%，主要由400G ZR驱动，800G ZR开始出现但未替代400G；新系统赢单属于电信而非DCI。
Mgmt stance: bullish，DCI需求强劲且持久，执行能力强。

Q5 — George Charles Notter

Topic: Amazon warrants归属及HPC业务

Q&A Batch (6-8 of 8)

Q6 — Ryan Boyer Koontz

Topic: 800G demand visibility, auto segment outlook, tariff impact
Key points:
- Visibility on 800G demand is “quite good”; both 800G and 1.6T are supply-constrained, not demand-constrained.
- Auto segment expected to be “steady” in FY2026, not growing as fast as datacom/telecom; FN’s auto business is EV charging infrastructure, less exposed to consumer sentiment.
- Tariffs: no meaningful impact to date; shipping terms make customer responsible for tariffs; products often shipped to Asia/Europe, not directly to U.S.
Mgmt stance: Neutral on auto (steady growth, slower than other segments); neutral on tariffs (no impact seen, contractual protections).

Q7 — Michael Edward Genovese

Topic: 200G per lane lasers, supply constraints across 800G and 1.6T
Key points:
- Bulk of 800G growth is on 200G per lane products.
- Supply constraints affect both 800G and 1.6T.
- Sequential decline in current quarter is driven primarily by main customer on 200G per lane; other customers are being worked on but not yet meaningful revenue.
Mgmt stance: Neutral (acknowledges supply constraints impacting both product lines, but main customer is the key driver of near-term weakness).

Q8 — Timothy Paul Savageaux

Topic: Component shortage quantification, 800G+ growth drivers
Key points:
- Component shortage impact on datacom is “meaningful enough to call out”; FN would be “up fairly significantly” without it, but no specific number provided.
- 800G and above growth driven by both datacom and telecom; DCI (400 ZR) is strong in telecom segment, contributing to growth.
Mgmt stance: Neutral (acknowledges substantial headwind from component shortages but declines to quantify; highlights mixed growth drivers across datacom and telecom).