- Record Fourth Quarter Revenue Exceeds Guidance Range
- Record Fiscal Year 2026 Revenue Increases 36% Year-over-year
BANGKOK, Aug. 17, 2026 (GLOBE NEWSWIRE) -- Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced its financial results for its fourth quarter and fiscal year ended June 26, 2026.
Seamus Grady, Chief Executive Officer of Fabrinet, said, “Our fourth quarter was exceptional, capping off a remarkable year of accelerating growth and strong momentum. We achieved record quarterly revenue of $1.316 billion, exceeding our guidance range, and increasing 45% from a year ago. Through excellent execution, our non-GAAP EPS grew even faster, and also reached a new all-time high. For the full fiscal year, revenue increased 36% to $4.6 billion. As we look to fiscal year 2027, we remain very optimistic about the strength of our business and durability in the growth trends we are seeing, as multiple, significant growth drivers across our business contribute to our success.”
Fourth Quarter Fiscal Year 2026 Financial Highlights
GAAP Results
- Revenue for the fourth quarter of fiscal year 2026 was $1,315.8 million, compared to $909.7 million for the fourth quarter of fiscal year 2025.
- GAAP net income for the fourth quarter of fiscal year 2026 was $139.3 million, compared to $87.2 million for the fourth quarter of fiscal year 2025.
- GAAP net income per diluted share for the fourth quarter of fiscal year 2026 was $3.83, compared to $2.42 for the fourth quarter of fiscal year 2025.
Non-GAAP Results
- Non-GAAP net income for the fourth quarter of fiscal year 2026 was $149.1 million, compared to $95.6 million for the fourth quarter of fiscal year 2025.
- Non-GAAP net income per diluted share for the fourth quarter of fiscal year 2026 was $4.10, compared to $2.65 for the fourth quarter of fiscal year 2025.
Fiscal Year 2026 Financial Highlights
GAAP Results
- Revenue for fiscal year 2026 was $4.64 billion, compared to $3.42 billion for fiscal year 2025.
- GAAP net income for fiscal year 2026 was $473.0 million, compared to $332.5 million for fiscal year 2025.
- GAAP net income per diluted share for fiscal year 2026 was $13.05, compared to $9.17 for fiscal year 2025.
Non-GAAP Results
- Non-GAAP net income for fiscal year 2026 was $510.9 million, compared to $368.8 million for fiscal year 2025.
- Non-GAAP net income per diluted share for fiscal year 2026 was $14.09, compared to $10.17 for fiscal year 2025.
Business Outlook
Based on information available as of August 17, 2026, Fabrinet is issuing guidance for its first fiscal quarter ending September 25, 2026, as follows:
- Fabrinet expects first quarter revenue to be in the range of $1.375 billion to $1.425 billion.
- GAAP net income per diluted share is expected to be in the range of $3.39 to $3.54, based on approximately 36.3 million fully diluted shares outstanding.
- Non-GAAP net income per diluted share is expected to be in the range of $4.10 to $4.25, based on approximately 36.3 million fully diluted shares outstanding.
Guidance for non-GAAP net income per diluted share excludes share-based compensation expenses and certain non-recurring items. A reconciliation of non-GAAP net income per diluted share to the corresponding GAAP measure is available at the end of this press release.
Conference Call Information
What: Fabrinet Fourth Quarter Fiscal Year 2026 Financial Results CallWhen: August 17, 2026Time: 5:00 p.m. ETLive Call and Replay: https://investor.fabrinet.com/events-and-presentations/events
A recorded version of this webcast will be available approximately two hours after the call and accessible at http://investor.fabrinet.com. The webcast will be archived on Fabrinet’s website for a period of one year.
About Fabrinet
Fabrinet is a leading 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 subsystems, automotive components, medical devices, industrial lasers and sensors. Fabrinet offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, advanced packaging, integration, final assembly and testing. Fabrinet focuses on production of high complexity products in any mix and any volume. Fabrinet maintains engineering and manufacturing resources and facilities in Thailand, the United States of America, the People’s Republic of China, and Israel. For more information visit: www.fabrinet.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include (1) our optimism about the strength of our business and durability in the growth trends we are seeing, and (2) all of the statements under the “Business Outlook” section regarding our expected revenue, GAAP and non-GAAP net income per share, and fully diluted shares outstanding for the first quarter of fiscal year 2027. These forward-looking statements involve risks and uncertainties, and actual results could vary materially from these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: changes in general economic conditions, either globally or in our markets, and the risk of recession or an economic downturn; disruption to our supply chain, which could increase our costs and affect our ability to procure parts and materials; less customer demand for our products and services than forecasted; less growth in the data center, communications infrastructure, and automotive, industrial and other markets than we forecast; difficulties expanding into additional markets, such as the semiconductor processing, biotechnology, metrology and materials processing markets; increased competition in the optical manufacturing services markets; difficulties in delivering products and services that compete effectively from a price and performance perspective; our reliance on a small number of customers and suppliers; difficulties in managing our operating costs; difficulties in managing and operating our business across multiple countries (including Thailand, the People’s Republic of China, Israel and the U.S.); and other important factors as described in reports and documents we file from time to time with the Securities and Exchange Commission (SEC), including the factors described under the section captioned “Risk Factors” in our Quarterly Report on Form 10-Q filed with the SEC on May 4, 2026. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP, we provide investors with certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. We believe these non-GAAP financial measures provide investors with useful supplemental information to: (1) measure company performance against historical results, (2) facilitate comparisons to our competitors’ operating results, and (3) allow greater transparency with respect to information used by management in making financial and operational decisions. In addition, we use some of these non-GAAP financial measures to measure company performance for the purposes of determining employee incentive plan compensation.
Non-GAAP gross profit, non-GAAP operating profit, non-GAAP net income and non-GAAP net income per diluted share exclude: share-based compensation expenses; severance payment and others; restructuring and other related costs; legal and litigation costs; non-marketable equity securities revaluation; and charges arising from the implementation or application of the OECD Pillar Two global minimum tax framework, including charges resulting from changes in implementing regulations, administrative guidance or related governmental measures. We have excluded these items in order to enhance investors’ understanding of our underlying operations.
Non-GAAP free cash flow is net cash provided by (used in) operating activities, minus capital expenditures (purchase of property, plant and equipment). We use free cash flow to measure our ability to generate additional cash from our business operations.
There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We urge you to review the reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.
Investor Contact:
Garo Toomajanian
[email protected]
CONSOLIDATED BALANCE SHEETS (in thousands of U.S. dollars, except share data and par value)June 26,
2026 June 27,
2025 (unaudited) Assets Current assets Cash and cash equivalents$346,711 $306,425 Short-term investments 528,344 627,819 Trade accounts receivable, net of allowance for expected credit losses of $1,050 and $1,344, respectively 1,017,933 758,894 Inventories 1,021,235 581,015 Prepaid expenses 49,915 38,476 Other current assets 195,571 116,210 Total current assets 3,159,709 2,428,839 Non-current assets Long-term restricted cash 704 — Property, plant and equipment, net 615,067 380,640 Intangibles, net 2,458 2,156 Operating right-of-use assets 3,974 5,768 Deferred tax assets 19,229 13,406 Non-marketable equity securities 89,103 — Other non-current assets 20,717 623 Total non-current assets 751,252 402,593 Total Assets$3,910,961 $2,831,432 Liabilities and Shareholders’ Equity Current liabilities Trade accounts payable 1,005,761 637,417 Fixed assets payable 86,018 40,781 Operating lease liabilities, current portion 1,189 1,792 Income tax payable 63,469 7,939 Accrued payroll, bonus and related expenses 29,850 24,566 Accrued expenses 56,549 30,630 Severance liabilities, current portion 2,319 — Other payables 157,470 66,717 Total current liabilities 1,402,625 809,842 Non-current liabilities Deferred tax liability 1,654 1,595 Operating lease liabilities, non-current portion 2,824 3,679 Severance liabilities, non-current portion 31,776 31,225 Other non-current liabilities 17,826 3,279 Total non-current liabilities 54,080 39,778 Total Liabilities 1,456,705 849,620 Shareholders’ equity Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of June 26, 2026 and June 27, 2025) — — Ordinary shares (500,000,000 shares authorized, $0.01 par value; 39,722,708 shares and 39,602,152 shares issued as of June 26, 2026 and June 27, 2025, respectively; and 35,834,864 shares and 35,728,074 shares outstanding as of June 26, 2026 and June 27, 2025, respectively) 397 396 Additional paid-in capital 251,854 237,881 Less: Treasury shares (3,887,844 shares and 3,874,078 shares as of June 26, 2026 and June 27, 2025, respectively) (365,287) (360,056)Accumulated other comprehensive income (loss) 968 10,294 Retained earnings 2,566,324 2,093,297 Total Shareholders’ Equity 2,454,256 1,981,812 Total Liabilities and Shareholders’ Equity$3,910,961 $2,831,432
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Three Months Ended Year Ended(in thousands of U.S. dollars, except per share data)June 26,
2026 June 27,
2025 June 26,
2026 June 27,
2025 (unaudited) (unaudited) (unaudited) Revenues$1,315,788 $909,692 $4,641,097 $3,419,327 Cost of revenues (1,157,737) (798,401) (4,084,586) (3,005,978)Gross profit 158,051 111,291 556,511 413,349 Selling, general and administrative expenses (23,685) (22,166) (93,507) (87,466)Restructuring and other related costs (117) (69) (117) (1,436)Operating income 134,249 89,056 462,887 324,447 Interest income 7,025 7,770 32,418 40,162 Interest expense (84) — (84) — Foreign exchange gain (loss), net 1,151 (3,523) 2,866 (9,251)Other income (expense), net 57,377 (67) 57,026 (178)Income before income taxes 199,718 93,236 555,113 355,180 Income tax expense (60,458) (6,029) (82,086) (22,653)Net income 139,260 87,207 473,027 332,527 Other comprehensive income (loss), net of tax: Change in net unrealized gain (loss) on available-for-sale securities (1,793) 246 (3,118) 9,893 Change in net unrealized gain (loss) on derivative instruments 3,288 1,407 (6,094) 2,314 Change in foreign currency translation adjustment (26) 92 (114) 1,228 Total other comprehensive income (loss), net of tax 1,469 1,745 (9,326) 13,435 Net comprehensive income$140,729 $88,952 $463,701 $345,962 Earnings per share Basic$3.89 $2.44 $13.21 $9.23 Diluted$3.83 $2.42 $13.05 $9.17 Weighted-average number of ordinary shares outstanding (in thousands of shares) Basic 35,833 35,788 35,815 36,017 Diluted 36,358 36,084 36,252 36,267
CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended(in thousands of U.S. dollars)June 26,
2026 June 27,
2025 (unaudited) Cash flows from operating activities Net income$473,027 $332,527 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 68,371 53,433 (Gain) loss on disposal of property, plant and equipment and intangibles (693) (70)(Gain) loss on non-marketable equity securities (56,743) — Amortization of discount (premium) of short-term investments (4,724) (4,563)Inventory obsolescence impairment 2,681 — (Reversal of) allowance for expected credit losses (294) (285)Unrealized loss (gain) on exchange rate and fair value of foreign currency forward contracts 268 4,963 Share-based compensation 34,630 33,004 Customer warrant 4,800 4,109 Deferred income tax expense (benefit) (5,107) (5,726)Other non-cash expenses 409 131 Changes in operating assets and liabilities Trade accounts receivable (259,258) (165,657)Inventories (442,901) (117,809)Other current assets and non-current assets (108,114) (33,595)Trade accounts payable 370,753 194,236 Income tax payable 55,530 4,029 Accrued expenses 16,675 13,036 Other payables 94,753 11,522 Severance liabilities 3,743 3,799 Other current liabilities and non-current liabilities 8,919 1,281 Net cash provided by operating activities 256,725 328,365 Cash flows from investing activities Purchase of short-term investments (276,207) (444,149)Proceeds from sales of short-term investments 12,000 — Proceeds from maturities of short-term investments 365,289 279,417 Purchases of non-marketable equity securities (32,360) — Purchase of property, plant and equipment (252,503) (121,078)Purchase of intangibles (1,181) (738)Proceeds from disposal of property, plant and equipment 1,387 252 Net cash used in investing activities (183,575) (286,296)Cash flows from financing activities Repurchase of ordinary shares (5,231) (125,733)Withholding tax related to net share settlement of restricted share units (25,456) (21,275)Net cash used in financing activities (30,687) (147,008)Net increase (decrease) in cash, cash equivalents and restricted cash$42,463 $(104,939)Movement in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at the beginning of period$306,425 $409,973 Increase (decrease) in cash, cash equivalents and restricted cash 42,463 (104,939)Effect of exchange rate on cash, cash equivalents and restricted cash (1,473) 1,391 Cash, cash equivalents and restricted cash at the end of period$347,415 $306,425
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) Supplemental disclosuresYear Ended(in thousands of U.S. dollars)June 26,
2026 June 27,
2025 (unaudited) Cash paid for Taxes$29,405 $24,302Cash received for interest$33,462 $33,718Non-cash investing and financing activities Construction, software and equipment related payables$86,018 $40,781
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED) Reconciliation of GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Profit and Non-GAAP Gross Margin
Three Months Ended Year Ended(in thousands of U.S. dollars)June 26,
2026 June 27,
2025 June 26,
2026 June 27,
2025Revenues$1,315,788 $909,692 $4,641,097 $3,419,327 Gross profit (GAAP)$158,051 12.0% $111,291 12.2% $556,511 12.0% $413,349 12.1%Share-based compensation expenses 2,765 2,573 11,459 10,456 Gross profit (Non-GAAP)$160,816 12.2% $113,864 12.5% $567,970 12.2% $423,805 12.4%
Three Months Ended Year Ended(in thousands of U.S. dollars)June 26,
2026 June 27,
2025 June 26,
2026 June 27,
2025Revenues$1,315,788 $909,692 $4,641,097 $3,419,327 Operating profit (GAAP)$134,249 10.2% $89,056 9.8% $462,887 10.0% $324,447 9.5%Share-based compensation expenses 8,261 8,101 34,630 33,004 Severance payment and others 424 — 1,109 748 Legal and litigation costs 313 250 1,320 1,077 Restructuring and other related costs 117 69 117 1,436 Operating profit (Non-GAAP)$143,364 10.9% $97,476 10.7% $500,063 10.8% $360,712 10.5%
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED) Reconciliation of GAAP Net Income and EPS to Non-GAAP Net Income and EPS
Three Months Ended Year Ended June 26,
2026 June 27,
2025 June 26,
2026 June 27,
2025(in thousands of U.S. dollars, except per share data)Net income Diluted EPS Net income Diluted EPS Net income Diluted EPS Net income Diluted EPSGAAP measures$139,260 $3.83 $87,207 $2.42 $473,027 $13.05 $332,527 $9.17Items reconciling GAAP net income & EPS to non-GAAP net income & EPS: Related to cost of revenues: Share-based compensation expenses 2,765 0.08 2,573 0.07 11,459 0.32 10,456 0.29Total related to cost of revenues 2,765 0.08 2,573 0.07 11,459 0.32 10,456 0.29Related to selling, general and administrative expenses: Share-based compensation expenses 5,496 0.15 5,528 0.15 23,171 0.64 22,548 0.62Legal and litigation costs 313 0.01 250 0.01 1,320 0.03 1,077 0.03Severance payment and others 424 0.01 — — 1,109 0.03 748 0.02Total related to selling, general and administrative expenses 6,233 0.17 5,778 0.16 25,600 0.70 24,373 0.67Related to restructuring and other related costs: Restructuring and other related costs 117 0.00 69 0.00 117 0.00 1,436 0.04Total related to restructuring and other related costs 117 0.00 69 0.00 117 0.00 1,436 0.04Related to other income and expense: Non-marketable equity securities revaluation (56,743) (1.56) — — (56,743) (1.56) — —Total related to other income and expense (56,743) (1.56) — — (56,743) (1.56) — —Related to income tax (benefit) expense Tax provision related to Pillar Two 57,447 1.58 — — 57,447 1.58 — —Total related to income tax (benefit) expense 57,447 1.58 — — 57,447 1.58 — —Total related to net income & EPS 9,819 0.27 8,420 0.23 37,880 1.04 36,265 1.00Non-GAAP measures$149,079 $4.10 $95,627 $2.65 $510,907 $14.09 $368,792 $10.17Shares used in computing diluted net income per share (in thousands of shares) GAAP diluted shares 36,358 36,084 36,252 36,267Non-GAAP diluted shares 36,358 36,084 36,252 36,267
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(UNAUDITED) (in thousands of U.S. dollars) Three Months Ended Year Ended June 26,
2026 June 27,
2025 June 26,
2026 June 27,
2025Net cash provided by operating activities $54,967 $55,093 $256,725 $328,365 Less: Purchase of property, plant and equipment (91,869) (50,410) (252,503) (121,078)Non-GAAP free cash flow $(36,902) $4,683 $4,222 $207,287
GUIDANCE FOR QUARTER ENDING SEPTEMBER 25, 2026
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES Diluted
EPSGAAP net income per diluted share$3.39 to $3.54Related to cost of revenues: Share-based compensation expenses0.12Total related to cost of revenues0.12Related to selling, general and administrative expenses: Share-based compensation expenses0.19Total related to selling, general and administrative expenses0.19Related to income tax (benefit) expense: Tax provision related to Pillar Two0.40Total related to income tax (benefit) expense0.40Total related to net income & EPS0.71Non-GAAP net income per diluted share$4.10 to $4.25