Fabrinet (NYSE:FN) Releases Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Fabrinet (NYSE:FN) released its quarterly earnings results on Monday. The technology company reported $3.36 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.26 by $0.10, FiscalAI reports. Fabrinet had a return on equity of 18.16% and a net margin of 9.77%.The firm had revenue of $1.13 billion for the quarter, compared to the consensus estimate of $1.08 billion. During the same period last year, the business posted $2.61 EPS. The company’s revenue for the quarter was up 35.9% on a year-over-year basis. Fabrinet updated its Q3 2026 guidance to 3.450-3.600 EPS.

Here are the key takeaways from Fabrinet’s conference call:

• Record Q2 results — revenue of $1.13 billion (+36% YoY) and record non‑GAAP EPS of $3.36, both above guidance.
• Broad, multi‑segment strength — Telecom was a standout (record $554M, +59% YoY) with DCI at $142M, Datacom showed sequential recovery and a newly approved second EML source should ease prior supply constraints, and HPC surged to $86M (management expects a >~$150M run‑rate when fully ramped over the next two quarters).
• Capacity expansion under way — 2 million sq ft Building 10 remains on track for calendar‑end 2026 with ~250k sq ft available mid‑2026, plus ~120k sq ft being converted to manufacturing at Pinehurst to support anticipated demand.
• Ongoing FX pressure — Q2 included a $3M revaluation loss (~$0.09/share) and management expects continuing FX headwinds in Q3, implying an estimated 20–30 basis point gross margin drag.
• Confident near‑term outlook — Q3 guidance of $1.15–$1.20B revenue (~35% YoY at midpoint) and non‑GAAP EPS of $3.45–$3.60 (~40% YoY at midpoint), with management expecting to offset FX pressure through operating leverage.

Fabrinet Stock Performance

Shares of Fabrinet stock opened at $499.83 on Tuesday. Fabrinet has a fifty-two week low of $148.55 and a fifty-two week high of $531.22. The company has a market capitalization of $17.91 billion, a P/E ratio of 51.48 and a beta of 1.04. The company has a fifty day moving average of $473.49 and a 200 day moving average of $406.16.

Insider Activity

In related news, CEO Seamus Grady sold 22,451 shares of Fabrinet stock in a transaction that occurred on Wednesday, November 26th. The stock was sold at an average price of $446.95, for a total transaction of $10,034,474.45. Following the sale, the chief executive officer owned 23,573 shares of the company’s stock, valued at approximately $10,535,952.35. This trade represents a 48.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Thomas F. Kelly sold 2,200 shares of the business’s stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $464.14, for a total value of $1,021,108.00. Following the completion of the transaction, the director directly owned 18,789 shares in the company, valued at approximately $8,720,726.46. This represents a 10.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 28,151 shares of company stock worth $12,643,707 over the last ninety days. Corporate insiders own 0.24% of the company’s stock.

Hedge Funds Weigh In On Fabrinet

Institutional investors have recently added to or reduced their stakes in the company. Ashton Thomas Private Wealth LLC purchased a new stake in shares of Fabrinet during the 1st quarter worth approximately $203,000. Empowered Funds LLC bought a new stake in Fabrinet in the first quarter worth $2,331,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Fabrinet by 4.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 79,444 shares of the technology company’s stock valued at $15,691,000 after purchasing an additional 3,717 shares in the last quarter. M&T Bank Corp bought a new position in Fabrinet during the second quarter valued at $214,000. Finally, EverSource Wealth Advisors LLC grew its stake in shares of Fabrinet by 574.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 533 shares of the technology company’s stock worth $157,000 after buying an additional 454 shares in the last quarter. Hedge funds and other institutional investors own 97.38% of the company’s stock.

Analyst Ratings Changes

Several research firms have recently commented on FN. Zacks Research lowered shares of Fabrinet from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. JPMorgan Chase & Co. boosted their target price on shares of Fabrinet from $430.00 to $530.00 and gave the company an “overweight” rating in a research report on Tuesday, November 4th. Northland Securities set a $600.00 target price on shares of Fabrinet in a report on Monday, December 22nd. Barclays set a $548.00 price target on shares of Fabrinet and gave the stock an “overweight” rating in a research note on Tuesday. Finally, Susquehanna upped their price objective on Fabrinet from $550.00 to $570.00 and gave the stock a “positive” rating in a research note on Thursday, January 22nd. Seven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $478.50.

Key Stories Impacting Fabrinet

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Record revenue and EPS beat: Fabrinet reported Q2 revenue of ~$1.13B (year‑over‑year growth ~36%) and EPS consistent with the company release ($3.36), topping headline consensus and showing strong top‑line demand. Fabrinet (FN) Q2 2026 Earnings Call Highlights
• Positive Sentiment: Ahead‑of‑consensus guidance: Management set Q3 FY2026 EPS guidance of $3.45–$3.60 and revenue guidance (~$1.2B) above Street expectations, supporting continued growth into the next quarter. Fabrinet Announces Second Quarter Fiscal Year 2026 Financial Results
• Neutral Sentiment: Analyst views and valuations are mixed: several firms maintain buy ratings and lofty price targets (median ~\$538), but valuation is elevated (P/E ~51) after a large one‑year rally — this increases sensitivity to any near‑term miss. Fabrinet (FN) Stock Falls on Q2 2026 Earnings
• Neutral Sentiment: Full earnings call and transcript are available for details on customer timing, product ramps (AI/HPC exposure) and FX commentary — useful for parsing whether weakness is operational or timing‑related. Fabrinet (FN) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Shares fell sharply despite the beat: multiple outlets reported a significant intraday sell‑off — the market appears focused on items beyond headline revenue/EPS. Fabrinet shares tumble despite record Q2 results
• Negative Sentiment: Cash flow and balance‑sheet signals raised concerns: third‑party summaries flagged a sharp drop in operating cash flow, large increase in capex and lower cash balances year‑over‑year — these can pressure near‑term liquidity and investor sentiment. Fabrinet (FN) Stock Falls on Q2 2026 Earnings
• Negative Sentiment: Perception of mixed metrics: while company releases show EPS beat, some outlets reported different diluted EPS figures or misses on specific measures — any apparent inconsistency can amplify selling in a richly valued stock. Fabrinet crashes despite strong Q2 results, guidance
• Negative Sentiment: Insider selling and profit‑taking after a large rally: datasets cited recent insider sales and a ~126% one‑year rally — these dynamics can accentuate post‑earnings pullbacks. Fabrinet (FN) Stock Falls on Q2 2026 Earnings

Fabrinet Company Profile

Fabrinet is a global provider of advanced optical packaging and precision optical, electro‐mechanical and electronic manufacturing services (CEM). The company specializes in complex manufacturing processes for original equipment manufacturers (OEMs) in communications, data center, industrial, instrumentation and medical markets. Key capabilities include high‐precision fiber alignment, micro‐assembly, testing and diagnostics, and integration of electro‐optic subassemblies.

Incorporated in 2000, Fabrinet operates under a corporate structure headquartered in Singapore with additional regional offices and design centers in the Americas, Europe and Asia.