Fabrinet is experiencing a powerful growth cycle driven by the ramp of 800G optical transceivers for AI data centers, with revenue growth accelerating to 44.6% year-over-year in Q4 2026. However, this expansion is consuming significant cash, as evidenced by th...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has accelerated sharply to 44.6% year-over-year in Q4 2026, yet gross margins remain structurally capped within a tight 11.6%-12.4% band, suggesting limited pricing power despite the AI-driven demand surge.
Fabrinet's Q3 2026 results show strong revenue and net income, driven by AI and optical demand, with potential for further growth from higher speed transceivers and HPC manufacturing.
Fabrinet is benefiting from rising automation and AI demand, particularly as a manufacturing partner for advanced optical transceivers, high-performance computing clusters, and industrial lasers.
Fabrinet's strong financial position is underpinned by a debt-free balance sheet, providing stability and flexibility for future growth initiatives.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 17, 2026 | $4.10+7.6% vs $3.81 | $1.3B+3.1% vs $1.3B |
Q2 2026 May 4, 2026 | $3.72+4.5% vs $3.56 | $1.2B+2.2% vs $1.2B |
Q1 2026 Feb 2, 2026 | $3.36+3.1% vs $3.26 | $1.1B+5.2% vs $1.1B |
Q4 2025 Nov 3, 2025 | $2.92+3.5% vs $2.82 | $978M+4.7% vs $934M |
Fabrinet is positioned to benefit from surging AI and data center demand, driving robust optical manufacturing growth. FN's aggressive capacity expansion, supported by a strong balance sheet and no debt, underpins its ability to capture future demand. Operating leverage and accelerating EPS growth have compressed FN's valuation, making shares attractive after a sharp correction.
Fabrinet delivered 45% Q4 FY2026 revenue growth, driven by surging AI data center demand, with Data Center revenue up 68%. At $380, FN trades at 21x FY2027 EPS, but valuation improves to 17x FY2028 and 13x FY2029 on accelerating earnings growth. DCI and customer diversification are key growth drivers, while capacity expansions could push production to $9.8 billion by early 2027.
Fabrinet holds a critical, high-barrier position in the AI infrastructure supply chain. Rapid revenue growth is currently driven by a small number of major hyperscaler customers.
Fabrinet (FN) reported earnings 30 days ago. What's next for the stock?
Benchmark FN against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Fabrinet (FN)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $403.80 | $14.47B | 30.94 | 35.73% | 10.19% | 21.33% | — | |
| $114.45 | $41.93B | 49.12 | 8.14% | 3.32% | 18.71% | — | |
| $308.98 | $32.6B | 52.19 | 3.18% | 2.57% | 62.24% | — | |
| $356.09 | $40.94B | 48.85 | 30.71% | 7.16% | 50.69% | — | |
| $82.23 | $2.95B | 120.93 | 0.11% | 1.89% | 4.81% | — | |
| $263.33 | $7.05B | 42.07 | 1.82% | 4.03% | 12.46% | — |
Fabrinet (FN) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Fabrinet (FN) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 17, 2026·SEC
May 4, 2026·SEC
Feb 2, 2026·SEC
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Fabrinet (FN) stock FAQ — growth, dividends, profitability & financials explained
Fabrinet (FN) reported $4.64B in revenue for fiscal year 2026. This represents a 1135% increase from $375.7M in 2006.
Fabrinet (FN) grew revenue by 35.7% over the past year. This is strong growth.
Yes, Fabrinet (FN) is profitable, generating $473.0M in net income for fiscal year 2026 (10.2% net margin).
Fabrinet (FN) has a return on equity (ROE) of 21.3%. This is excellent, indicating efficient use of shareholder capital.
Fabrinet (FN) generated $3.0M in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
