Earnings Recap — Q4 FY2026
CY Q3 2026 · Reported August 17, 2026 · Beat 6 of last 6 quarters
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Fabrinet's record quarter and raised capacity targets underscore the accelerating pace of AI infrastructure buildout, with data center revenue now over half of total and DCI run-rate exceeding $1B. The company's expansion to $12.5-14B capacity signals sustained multi-year demand for optical interconnects, transceivers, and HPC assembly, reinforcing the critical role of contract manufacturers in scaling AI data center infrastructure.
Fabrinet reported record Q4 FY26 revenue of $1.316B, up 45% YoY, and non-GAAP EPS of $4.10, both above guidance. Data center revenue became the largest category at $669M (51% of total), driven by DCI (annualized run rate >$1B) and HPC, while communications infrastructure grew 40% YoY to $413M. The company completed the acquisition of a new campus in Navanakorn, Thailand, and a new site in Santa Clara, and began qualifying space in Building 10. For fiscal 2026, revenue grew 36% to $4.6B and non-GAAP EPS rose 39% to $14.09, with four customers each exceeding 10% of revenue: Cisco (20%), NVIDIA (16%), Nokia (11%), and Amazon (11%).
Management guided Q1 FY27 revenue to $1.375-1.425B (43% YoY growth at midpoint) and non-GAAP EPS to $4.10-4.25, noting typical first-quarter expense seasonality as a temporary margin headwind. They expressed confidence in continued strong growth across data center (transceivers, DCI, HPC), communications infrastructure, and automotive/industrial, with new transceiver programs ramping through fiscal 2027. Capacity expansion is on track: Building 10 to add 2M sq ft by early 2027, Navanakorn campus commissioned, and Santa Clara acquisition to double Silicon Valley footprint. Management raised the long-term capacity run-rate target to $12.5-14B, up from prior $11.5B, citing both increased square footage and higher revenue per square foot. They emphasized customer visibility extending into fiscal 2027 and beyond.
“We are excited to report that we have successfully completed and have already begun shipping two datacom transceiver programs directly to a hyperscale customer, with initial ramps starting in the fourth quarter.”
on Hyperscale direct transceiver programs
“We have land capacity and plans in place to bring that capacity up to between 12.5 and 14 billion over the coming years.”
on Capacity expansion
“We are more confident than ever in our longer term outlook. Customers provide us with visibility that goes into fiscal 27 and beyond.”
on Long-term demand visibility
How do you think about the triggers for Building 11 and longer-term capacity additions?
Seamus Grady detailed the capacity roadmap: exiting Q4 at a $5.3B run rate, with Pinehurst conversions adding to $5.5-5.8B, Building 10 adding $3-3.5B to reach $8.5-9.3B, plus Navanakorn and Santa Clara each adding $200-250M, and room for two more Chonburi buildings. Total potential capacity of $12.5-14B, with continued land acquisition.
How are you thinking about Fabrinet's ability to address CPO and NPO opportunities, especially given the Raytec partnership?
Seamus Grady said NPO is a more near-term opportunity than CPO, combining elements of pluggables and CPO. Fabrinet is well-positioned due to its expertise in high-volume optical packaging, and the Raytec partnership will add wafer-level packaging capacity in Thailand, enabling them to offer all packaging capabilities under one roof.
Is it within the bounds of reasonableness to think about annual growth in fiscal 27 accelerating from fiscal 26?
Seamus Grady said it is 'not beyond the bounds of possibility' given the demand picture, with visibility extending into 2027 and beyond. He noted the company has had 12 consecutive quarters of record revenue and 6 consecutive quarters of accelerating YoY growth, and the demand environment remains 'staggering.'