Key Highlights

  • Record Revenue for the fiscal first quarter reached $1,474.5 million, climbing from $978.1 million one year earlier.
  • Non-GAAP Earnings per diluted share landed at $4.34, versus $2.92 during the same stretch last year.
  • Data center sales advanced 78% to $777 million, which accounts for 53% of overall revenue.
  • For the second quarter, revenue is guided between $1.6 billion and $1.65 billion, with non-GAAP per-share earnings from $4.77 up to $4.92.
  • The board tacked on $103.0 million to the repurchase program, which now stands at $637.3 million overall.

Record Top Line Lifted by Data Center Work and Faster Expansion

Fabrinet (NYSE:FN) posted a record $1,474.5 million in revenue for fiscal Q1 2027, a quarter that closed on Sep 25, 2026. That total represents a 51% jump from $978.1 million a year before. The Nov 2, 2026 release also surpassed the company's internal forecast range, and executives characterized the pace as the strongest in a decade, marking a 14th successive quarter of increases.

The Business supplies advanced optical packaging along with precision optics, electromechanical and electronic production to customers making optical communication parts, automotive components, medical equipment and industrial lasers. Sales tied to data centers rose 78% to $777 million, fueled by interconnect products, transceiver lines and HPC workloads.

Communications infrastructure revenue climbed 35% to $444 million, and automotive, industrial and other categories rose 20% to $253 million.

Global Minimum Tax Charge and a Revaluation Loss Hold Back GAAP Earnings

On a GAAP basis, Net Income came in at $103.5 million, equal to $2.86 per diluted share, compared with $95.9 million, which was $2.66, twelve months earlier. Stripping out adjustments, the non-GAAP figure was $157.4 million or $4.34 per diluted share, against $105.3 million or $2.92 before. Taxes under the global minimum tax framework account for a $19.9 million provision, and $21.5 million of non-cash losses from revaluing a minority Investment make up the rest of the gap.

Margins were slightly lower on both bases. GAAP gross Margin landed at 11.8%, compared with 11.9%, and the non-GAAP gross margin moved to 12.1% from 12.3%, a shift management mostly tied to currency pressure. The non-GAAP operating margin, however, reached 10.8%, up from 10.6%.

Cash generation weakened, with operating cash inflow dropping to $21.3 million from $102.6 million. Capital expenditure, a calculated $158.7 million, jumped from $45.3 million and included $77 million spent on a second Santa Clara campus. Free Cash Flow therefore landed at negative $137.4 million.

Building 10 Capacity Near $10 Billion Supports Second Quarter Guidance

Guidance for the quarter closing Dec 25, 2026 calls for revenue between $1.6 billion and $1.65 billion. GAAP diluted EPS is projected between $3.81 and $3.96, and non-GAAP between $4.77 and $4.92, using roughly 36.2 million diluted shares.

Leadership indicated revenue capacity was about $5.8 billion at fiscal 2026's end and should approach $10 billion in January, chiefly through the completion of Building 10 in Chonburi, Thailand. Building 11, which follows, adds about $3 billion in revenue capacity across roughly 1.5 million square feet.

In the quarter, the company bought back roughly 77,000 shares at a cost of $29.1 million. An additional $103.0 million was then approved by the board, which puts the program's overall authority at $637.3 million.

Factory Expansion Strains Free Cash Flow as the Next Checkpoints Approach

Record top-line growth and non-GAAP earnings arrived alongside heavy plant investment, which left free cash flow in negative territory. Upcoming milestones include the second-quarter outcome measured against the guidance band between $1.6 billion and $1.65 billion, Building 10's January completion, and the beginning of Building 11 work.