Fabrinet (FN) reported second-quarter fiscal 2026 non-GAAP earnings of $3.36 per share, beating estimates by 3.07% and increasing 28.7% year over year. Revenues of $1.13 million grew 35.9% year over year, surpassing estimates by 5.03%. Optical Communications accounted for 73.5% of revenues, with Datacom and Telecom contributing significantly.

In the non-optical communications segment, revenues rose 61% year over year to $300.3 million. Automotive revenues increased by 12.3%, Industrial Laser revenues grew by 10.4%, and Other revenues rose by 26.2%. High-Performance Computing generated $85.6 million in revenues.

Fabrinet’s gross profit expanded 35.4% year over year to $140.3 million in the second quarter, with gross margin remaining flat. Non-GAAP operating profit reached $123.4 million, reflecting a 30-basis-point year-over-year improvement in operating margin to 10.9%.

As of Dec. 26, 2025, Fabrinet had cash and cash equivalents of $960.8 million. The company generated $46.3 million in cash flow from operating activities in the reported quarter, with non-GAAP free cash flow turning negative at $5.3 million.

For the third quarter of fiscal 2026, Fabrinet expects revenues between $1.15 billion and $1.20 billion, with non-GAAP earnings projected to be between $3.45 and $3.60 per share. The company currently holds a Zacks Rank #3 (Hold).

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Read more at Nasdaq: Fabrinet Q2 Earnings Surpass Estimates, Revenues Increase Y/Y