FN · Fabrinet

Fabrinet delivered exceptional third quarter fiscal 2026 results, with revenue reaching a record $1,214.3 million, up 39% from $871.8 million in the prior year quarter, fueled by numerous ongoing and ramping programs providing meaningful tailwinds, as stated by CEO Seamus Grady. Gross profit expanded to $144.3 million from $102.2 million, while operating income rose to $120.0 million from $78.9 million, reflecting robust operational leverage. GAAP net income of $125.2 million and diluted EPS of $3.45 significantly outperformed the prior year's $81.3 million and $2.25, with non-GAAP figures even stronger at $134.9 million and $3.72 per share. Balance sheet strength improved markedly, with total assets at $3.51 billion versus $2.83 billion at fiscal year-end 2025, driven by higher cash ($356.6 million), receivables ($908.5 million), and inventories ($876.0 million), though offset by increased payables. Operating cash flow for the nine months was $201.8 million, supporting $160.6 million in capex. Looking ahead, Fabrinet guides Q4 revenue to $1.25-$1.29 billion and GAAP EPS to $3.48-$3.63 (non-GAAP $3.72-$3.87), based on 36.3 million diluted shares, signaling continued momentum from new datacom customer agreements. Management highlights growth trajectory into Q4 and beyond, amid a focus on advanced optical packaging and precision manufacturing across Thailand, US, China, and Israel facilities.