Fabrinet Reports Record Q2 2026 Earnings Exceeding Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Record Revenue: Fabrinet's Q2 revenue reached $1.13 billion, growing 36% year-over-year and 16% sequentially, not only exceeding guidance but also marking a historic high for the company, reflecting strong market demand and execution capabilities.
- Strong Growth in Optical and Telecom: Optical communications revenue was $833 million, up 29% year-over-year, while telecom revenue hit $554 million, increasing 59% from last year, indicating the company's expanding market share in key sectors and enhancing future growth potential.
- High-Performance Computing Expansion: High-performance computing revenue surged to $86 million, with expectations for continued strong growth in the coming quarters as new production lines come online, further solidifying the company's competitive edge in technology.
- Strategic Investment and Expansion: The company is constructing a 2 million square foot Building 10, expected to be completed by the end of 2026, and is converting office space into manufacturing space to meet increasing production demands, ensuring long-term business growth.
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Analyst Views on FN
Wall Street analysts forecast FN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FN is 544.83 USD with a low forecast of 499.00 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 489.440
Low
499.00
Averages
544.83
High
600.00
Current: 489.440
Low
499.00
Averages
544.83
High
600.00
About FN
Fabrinet is a provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, automotive components, industrial lasers, medical devices and sensors. The Company offers a range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and testing. It focuses primarily on low-volume production of a wide variety of high complexity products. It also designs and fabricates applications-specific crystals, lenses, prisms, mirrors, laser components, and substrates (customized optics) and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products (customized glass).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Fabrinet Reports Record Q2 2026 Earnings Exceeding Guidance
- Record Revenue: Fabrinet's Q2 revenue reached $1.13 billion, growing 36% year-over-year and 16% sequentially, not only exceeding guidance but also marking a historic high for the company, reflecting strong market demand and execution capabilities.
- Strong Growth in Optical and Telecom: Optical communications revenue was $833 million, up 29% year-over-year, while telecom revenue hit $554 million, increasing 59% from last year, indicating the company's expanding market share in key sectors and enhancing future growth potential.
- High-Performance Computing Expansion: High-performance computing revenue surged to $86 million, with expectations for continued strong growth in the coming quarters as new production lines come online, further solidifying the company's competitive edge in technology.
- Strategic Investment and Expansion: The company is constructing a 2 million square foot Building 10, expected to be completed by the end of 2026, and is converting office space into manufacturing space to meet increasing production demands, ensuring long-term business growth.
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