Fabrinet (FN) is set to report second-quarter fiscal 2026 results on Feb. 2. Revenue expected between $1.05-$1.10 billion and EPS between $3.15-$3.30. Consensus estimates show 29.39% revenue growth and 24.9% EPS growth YoY. Fabrinet has beaten earnings estimates in the last four quarters with an average surprise of 2.39%.

The company’s performance in Q2 2026 likely benefited from strong momentum in Telecom and Data Center Interconnect business, with rising demand for DCI modules. Expansion in High-Performance Computing business has also boosted growth. However, the Automotive sector is expected to show weakness, impacting overall performance.

Fabrinet experienced margin pressure in Q1 2026 due to FX headwinds and seasonal impacts. Revenue-driven operating leverage may support margins in Q2, but FX pressures could limit margin expansion. Our model does not predict an earnings beat this time, with an Earnings ESP of 0.00% and a Zacks Rank #3.

Consider companies like Cirrus Logic (CRUS), Advanced Micro Devices (AMD), and Rockwell Automation (ROK) for potential earnings beats. CRUS has an Earnings ESP of +5.89%, AMD has +2.01%, and ROK has +1.03%. Each company has shown strong stock performance and favorable earnings estimates.

The AI revolution has created millionaires, but lesser-known AI firms addressing major issues may offer more profitable opportunities in the future. It’s important to look beyond well-known stocks for potential growth. Advanced Micro Devices, Cirrus Logic, and Rockwell Automation are worth considering for earnings beats.

Read more at Nasdaq: Fabrinet Set to Report Q2 Earnings: What’s in the Cards for the Stock?