BANGKOK, May 04, 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 third fiscal quarter ended March 27, 2026.
Seamus Grady, Chairman and Chief Executive Officer of Fabrinet, said, "Our third quarter was exceptionally strong, delivering record financial results that exceeded our guidance ranges. Growth was supported by numerous ongoing and ramping programs that continue to provide meaningful tailwinds. We expect several new customer agreements, particularly in the datacom market, to further strengthen our growth trajectory as we move into the fourth quarter and beyond."
Third Quarter Fiscal Year 2026 Financial Highlights
GAAP Results
Revenue for the third quarter of fiscal year 2026 was $1,214.3 million, compared to $871.8 million for the third quarter of fiscal year 2025.
GAAP net income for the third quarter of fiscal year 2026 was $125.2 million, compared to $81.3 million for the third quarter of fiscal year 2025.
GAAP net income per diluted share for the third quarter of fiscal year 2026 was $3.45, compared to $2.25 for the third quarter of fiscal year 2025.
Non-GAAP Results
Non-GAAP net income for the third quarter of fiscal year 2026 was $134.9 million, compared to $91.2 million for the third quarter of fiscal year 2025.
Non-GAAP net income per diluted share for the third quarter of fiscal year 2026 was $3.72, compared to $2.52 for the third quarter of fiscal year 2025.
Business Outlook
Based on information available as of May 4, 2026, Fabrinet is issuing guidance for its fourth fiscal quarter ending June 26, 2026, as follows:
Fabrinet expects fourth quarter revenue to be in the range of $1.25 billion to $1.29 billion.
GAAP net income per diluted share is expected to be in the range of $3.48 to $3.63, 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 $3.72 to $3.87, 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 Third Quarter Fiscal Year 2026 Financial Results Call
When:
May 4, 2026
Time:
5:00 p.m. ET
Live 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 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 fourth quarter of fiscal year 2026. 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 optical communications, automotive, industrial lasers and sensors 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 February 3, 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; and legal and litigation costs. 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]
FABRINETCONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars, except share data and par value)
March 27,2026
June 27,2025
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
356,562
$
306,425
Short-term investments
588,674
627,819
Trade accounts receivable, net of allowance for expected credit losses of $1,181 and $1,344, respectively
908,544
758,894
Inventories
875,988
581,015
Prepaid expenses
38,196
38,476
Other current assets
177,476
116,210
Total current assets
2,945,440
2,428,839
Non-current assets
Long-term restricted cash
694
—
Property, plant and equipment, net
524,973
380,640
Intangibles, net
2,392
2,156
Operating right-of-use assets
4,434
5,768
Deferred tax assets
17,266
13,406
Other non-current assets
13,787
623
Total non-current assets
563,546
402,593
Total Assets
$
3,508,986
$
2,831,432
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable
859,004
637,417
Fixed assets payable
65,307
40,781
Operating lease liabilities, current portion
1,462
1,792
Income tax payable
7,611
7,939
Accrued payroll, bonus and related expenses
30,845
24,566
Accrued expenses
36,418
30,630
Severance liabilities, current portion
1,981
—
Other payables
152,915
66,717
Total current liabilities
1,155,543
809,842
Non-current liabilities
Deferred tax liability
1,216
1,595
Operating lease liability, non-current portion
2,963
3,679
Severance liabilities
31,501
31,225
Other non-current liabilities
13,052
3,279
Total non-current liabilities
48,732
39,778
Total Liabilities
1,204,275
849,620
Shareholders' equity
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of March 27, 2026 and June 27, 2025)
—
—
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 39,717,065 shares and 39,602,152 shares issued as of March 27, 2026 and June 27, 2025, respectively; and 35,829,221 shares and 35,728,074 shares outstanding as of March 27, 2026 and June 27, 2025, respectively)
397
396
Additional paid-in capital
243,038
237,881
Less: Treasury shares (3,887,844 shares and 3,874,078 shares as of March 27, 2026 and June 27, 2025, respectively)
(365,287
)
(360,056
)
Accumulated other comprehensive income (loss)
(501
)
10,294
Retained earnings
2,427,064
2,093,297
Total Shareholders' Equity
2,304,711
1,981,812
Total Liabilities and Shareholders' Equity
$
3,508,986
$
2,831,432
FABRINETCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended
Nine Months Ended
(in thousands of U.S. dollars, except per share data)
March 27,2026
March 28,2025
March 27,2026
March 28,2025
Revenues
$
1,214,293
$
871,799
$
3,325,309
$
2,509,635
Cost of revenues
(1,069,954
)
(769,616
)
(2,926,849
)
(2,207,577
)
Gross profit
144,339
102,183
398,460
302,058
Selling, general and administrative expenses
(24,295
)
(22,063
)
(69,822
)
(65,300
)
Restructuring and other related costs
—
(1,264
)
—
(1,367
)
Operating income
120,044
78,856
