Fabrinet has delivered outstanding financial performance for the fourth quarter of fiscal year 2026, exceeding market expectations for both revenue and earnings per share. This strong close to the fiscal year positions the company for continued momentum into fiscal year 2027. A key strategic change involves restructuring revenue reporting into three distinct categories: Data Centers, Communications Infrastructure, and Automotive, Industrial, and Other, providing a clearer view of the evolving market landscape. The company's proactive approach to meeting escalating demand is evident in its substantial investments in expanding manufacturing capabilities across its global facilities.
On Monday, August 17, 2026, at 5:00 p.m. ET, Fabrinet held its earnings call, where Chairman and CEO Seamus Grady, CFO Csaba Sverha, and VP of Investor Relations Garo Toomajanian discussed the company's robust performance. Fourth-quarter revenue soared to $1.316 billion, marking a 45% year-over-year increase and exceeding the management's high-end guidance. Non-GAAP EPS also outperformed, reaching $4.10. For the full fiscal year 2026, total revenue hit an impressive $4.6 billion, up 36% from fiscal year 2025, with non-GAAP EPS growing even faster at 39% to $14.09. This growth wasn't concentrated in a single product or customer segment but was broadly driven by increasing demand across various markets, particularly in data centers and communications infrastructure.
A significant highlight was the unveiling of a new revenue reporting structure. This change aims to better reflect the end markets Fabrinet serves, particularly given the increasing complexity and prevalence of optical and electronic products within and between data centers. The new categories are Data Centers, Communications Infrastructure, and Automotive, Industrial, and Other. Data Center revenue reached $669 million, representing 51% of total revenue and growing by 68% year-over-year, largely due to demand for optical and interconnect products. The Data Center Interconnect (DCI) products achieved an annual run rate of $1 billion. Communications Infrastructure revenue stood at $413 million, showing 40% year-over-year growth, while Automotive, Industrial, and Other contributed $234 million, growing 8% year-over-year.
Fabrinet is aggressively expanding its manufacturing footprint to keep pace with soaring demand. Building 10 at its Chonburi campus in Thailand is on track to add 2 million square feet, with initial sections already qualified. The company also converted 120,000 square feet of office space at its Pinehurst campus into manufacturing space and commissioned a new 200,000 square foot facility in Navanakorn. Additionally, Fabrinet acquired a 130,000 square foot campus in Santa Clara, California, to significantly expand its Silicon Valley presence for new product introductions. These expansions are projected to increase Fabrinet's total annual revenue capacity to between $12.5 billion and $14 billion in the coming years, a substantial jump from the current $5.3 billion run rate. This strategic investment in capacity underscores the company's confidence in sustained long-term growth and its ability to capitalize on emerging opportunities in high-growth markets like high-performance computing (HPC) and advanced optical technologies such as Near Packaged Optics (NPO).
Looking ahead, Fabrinet's guidance for the first quarter of fiscal year 2027 projects revenue between $1.375 billion and $1.425 billion, representing a 43% year-over-year growth at the midpoint. Non-GAAP EPS is expected to be between $4.10 and $4.25. The company emphasizes its strong momentum in the data center market, driven by transceivers, DCI, and HPC products, as well as robust demand in communications infrastructure and the automotive, industrial, and other segments. Fabrinet's management remains optimistic about its long-term outlook, citing consistent customer visibility extending into fiscal year 2027 and beyond, reinforcing the durability of current strong demand trends.
