Fabrinet Fiscal Q1 Revenue Rises 50.7% to Record $1.47 Billion; Buyback Expanded
Fabrinet started its 2027 fiscal year with record revenue that beat its own guidance, and the optical and electronics manufacturer forecast even higher sales for its fiscal second quarter. Revenue for the quarter ended Sept. 25 rose 50.7% to $1.47 billion from $978.1 million a year earlier, according to its 8-K.
Non-GAAP earnings climbed 48.6% to $4.34 a diluted share from $2.92, and non-GAAP net income rose 49.5% to $157.4 million from $105.3 million.
GAAP results grew more slowly. Net income rose 7.9% to $103.5 million, or $2.86 a share, from $95.9 million, or $2.66 a share. Operating income increased 55.0% to $146.0 million from $94.2 million, but the company recorded $21.6 million of other expense and income tax expense rose to $26.0 million from $5.5 million.
"Fiscal year 2027 is off to an excellent start with record revenue and non-GAAP earnings per share that were well above our guidance ranges," Chairman and Chief Executive Officer Seamus Grady said. "Broad-based demand across multiple significant programs drove these results, with new product ramps further supporting our growth."
Guidance points higher
For the fiscal second quarter ending Dec. 25, Fabrinet expects revenue of $1.6 billion to $1.65 billion. It forecasts GAAP earnings of $3.81 to $3.96 a diluted share and non-GAAP earnings of $4.77 to $4.92 a share.
"We enter the second quarter with exceptional momentum that makes us confident that we can deliver another strong performance," Grady said.
Bigger buyback
The board approved an additional $103.0 million for share repurchases, bringing the total authorization under the existing program to $637.3 million. Fabrinet spent $29.1 million buying back shares during the quarter.
Spending to grow
Operating cash flow fell to $21.3 million from $102.6 million a year earlier, as purchases of property, plant and equipment jumped to $158.7 million from $45.3 million. GAAP gross margin was 11.8%, compared with 11.9% a year ago.
By the numbers
- Revenue: $1.47 billion, up 50.7%
- GAAP EPS: $2.86 vs. $2.66
- Non-GAAP EPS: $4.34, up 48.6%
- Q2 revenue guidance: $1.6 billion to $1.65 billion
- Q2 non-GAAP EPS guidance: $4.77 to $4.92
- Added buyback authorization: $103.0 million
Sources
- Fabrinet Form 8-K with first-quarter fiscal 2027 earnings release, filed Nov. 2, 2026 (accession 0001408710-26-000034)
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