Fabrinet (FN) Earnings History

Fabrinet - Q2 FY2026 EarningsBeat

Filed at: Feb 2, 2026, 4:21 PM EST|Read from source

EXECUTIVE SUMMARY

Fabrinet delivered an exceptional second quarter with record revenue and earnings per share, significantly exceeding guidance due to strong performance in key strategic programs and excellent operational execution. The company is confident these drivers will continue into the third quarter, reflected in strong forward guidance.

POSITIVE HIGHLIGHTS

  • •

    Record revenue of $1,132.9 million for the second quarter of fiscal year 2026, up from $833.6 million in the prior year quarter.

    positive
  • •

    GAAP net income increased to $112.6 million from $86.6 million in the prior year quarter.

    positive
  • •

    GAAP diluted EPS rose to $3.11 from $2.38 in the prior year quarter.

    positive
  • •

    Non-GAAP diluted EPS increased to $3.36 from $2.61 in the prior year quarter.

    positive

CONCERNS & RISKS

  • •

    Inventories increased significantly from $581.0 million to $798.9 million year-over-year, a 37.5% increase, outpacing revenue growth.

    attention
  • •

    Operating margin (GAAP) was 10.1% in Q2 FY2026, compared to 9.5% in Q2 FY2025, showing some compression when considering the increase in revenue.

    attention
  • •

    Non-GAAP free cash flow was negative $5.3 million for the three months ended December 26, 2025, compared to positive $94.0 million in the prior year period.

    negative
  • •

    Purchase of property, plant and equipment increased to $51.6 million for the three months ended December 26, 2025, from $21.9 million in the prior year period.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$1.13B
+35.9%
Prior year: $833.61M
Annual (YTD)
$2.11B
N/A
Prior year: $1.64B
Net Income
Quarterly
$112.63B
N/A
EPS (Diluted)
Quarterly
$3.11
+30.7%
Prior year: $2.38
Operating Income
Quarterly
$114.40B
N/A
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Gross Margin
Current Quarter
12.2%
Prior Year
12.1%
YoY Change
+10 bps
Operating Margin
Current Quarter
10.1%
Prior Year
9.5%
YoY Change
+60 bps
Net Margin
Current Quarter
9.9%
Prior Year
10.4%
YoY Change
-50 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

Q3 2026

revenue
$1150000.0B—$1200000.0B
Mid-point: $1175000.0B
eps_diluted
$3.22—$3.37
Mid-point: $3.29
"GAAP"
eps_diluted
$3.45—$3.60
Mid-point: $3.53
"Non-GAAP"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q2 FY2026
Restructuring and other related costs
Non-GAAP adjustments exclude these costs.
+$0M
$0.00 per share
Q2 FY2025
Restructuring and other related costs
Non-GAAP adjustments exclude these costs.
+$0.046M
$0.00 per share
FY2026 (YTD)
Restructuring and other related costs
Non-GAAP adjustments exclude these costs.
+$0M
$0.00 per share
FY2025 (YTD)
Restructuring and other related costs
Non-GAAP adjustments exclude these costs.
+$0.103M
$0.00 per share
Q2 FY2026
Legal and litigation costs
Non-GAAP adjustments exclude these costs.
+$0.254M
$0.01 per share
FY2026 (YTD)
Legal and litigation costs
Non-GAAP adjustments exclude these costs.
+$0.51M
$0.01 per share
Q2 FY2025
Severance payment and others
Non-GAAP adjustments exclude these costs.
+$0.018M
$0.00 per share
FY2025 (YTD)
Severance payment and others
Non-GAAP adjustments exclude these costs.
+$0.748M
$0.02 per share
Total Impact
+$1.679M$0.04 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Delivered an exceptional second quarter with record revenue and earnings per share above guidance.

— Fabrinet, Q2 FY2026 2026 Earnings Call

Multiple large, key strategic programs contributed to outstanding performance.

— Fabrinet, Q2 FY2026 2026 Earnings Call

Excellent execution and strong operating leverage generated record EPS.

— Fabrinet, Q2 FY2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.