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Fabrinet Earnings Confirm the AI Optics Thesis but Cash Flow Needs Time

Writer: Antonia Njeru
Antonia Njeru
8 hours ago
6 min read

Fabrinet  |  NYSE FN  |  Update through fiscal Q4 2026  |  Rating Buy


Summary

  • I maintain a Buy rating on Fabrinet. 4Q FY 2026 revenue reached $1.316Bn, up 45% year over year and $40Mn above consensus, while non-GAAP EPS of $4.10 beat by $0.29.


  • The AI optics thesis strengthened as data center revenue grew 68% to $669Mn and became 51% of sales, led by DCI and high-performance computing.


  • My base case values FN at $455 using $18.16 of fiscal 2027 EPS, a 27x terminal P/E, and a 10% discount rate.


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    Glowing circuit board with a central chip sending teal and gold data lines to cube-like server blocks on a dark tech background
    Source; Nexthop ai

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