Fabrinet (FN) investor relations material

Executive summary

• Achieved record Q3 revenue of $1.214 billion, up 39% year-over-year, surpassing guidance, driven by strong demand in both optical and non-optical communications segments.

• Non-GAAP EPS reached a record $3.72, exceeding guidance, with GAAP net income at $125.2 million, up 54% year-over-year.

• Growth was broad-based across Optical Communications, Telecom, Datacom, and Non-Optical segments, with new Datacom programs and customer agreements ramping.

• Strategic investments, including a minority stake in Raytek Semiconductor and capacity expansions, position the company for continued growth into FY27.

• Serving diverse and expanding markets such as telecom, datacom, automotive, industrial lasers, and medical devices.

Financial highlights

• Q3 revenue: $1.214 billion (+39% YoY); Optical Communications revenue: $889 million (+35% YoY); Non-Optical Communications revenue: $326 million (+52% YoY).

• GAAP net income: $125.2 million; Non-GAAP net income: $134.9 million; GAAP diluted EPS: $3.45; Non-GAAP diluted EPS: $3.72.

• Gross margin: 12.1% (non-GAAP), 11.9% (GAAP); operating margin: 10.7% (non-GAAP), 9.9% (GAAP).

• Cash and equivalents: $945.9 million as of March 27, 2026; no debt.

• Free cash flow for nine months: $41.1 million; capex for nine months: $160.6 million.

Outlook and guidance

• Q4 revenue expected between $1.25–$1.29 billion, with non-GAAP EPS guidance of $3.72–$3.87.

• Growth expected to continue, supported by new customer agreements and program ramps, especially in datacom.

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

• SG&A expenses projected to increase due to higher IT and employee costs.

• Current cash and credit facilities sufficient for working capital and capex for at least the next 12 months.