Key Highlights

  • Revenue reached a record USD 1,474.5 million, compared with USD 978.1 million a year earlier, a 51% increase.
  • GAAP Net Income was USD 103.5 million, or USD 2.86 per diluted share, versus USD 95.9 million and USD 2.66.
  • Non-GAAP net income rose to USD 157.4 million, or USD 4.34 per share, compared with USD 2.92.
  • The board added USD 103.0 million to the share repurchase authorization, bringing the aggregate to USD 637.3 million.

First-Quarter Results

Fabrinet (NYSE:FN), a provider of advanced optical packaging and precision optical, electro-mechanical and electronic Manufacturing services, reported first-quarter fiscal 2027 Revenue of USD 1,474.5 million for the quarter ended September 25, 2026, up from USD 978.1 million and above its guidance range. GAAP net income was USD 103.5 million versus USD 95.9 million, and GAAP net income per diluted share was USD 2.86 versus USD 2.66.

The gap between GAAP and non-GAAP results was wide. Non-GAAP net income was USD 157.4 million versus USD 105.3 million, and non-GAAP net income per diluted share was USD 4.34 versus USD 2.92. By our calculation, non-GAAP Earnings Per Share grew about 49% while GAAP earnings per share grew about 8%, a difference that reflects share-based compensation expense and certain non-recurring items excluded from the non-GAAP figures.

Management Commentary

Chairman and chief executive Seamus Grady said fiscal 2027 is off to an excellent start, with record revenue and non-GAAP earnings per share well above the guidance ranges. He attributed the result to broad-based Demand across multiple significant programs, with new product ramps adding further support, and said the company enters the second quarter with exceptional momentum that makes him confident of another strong performance.

Fabrinet manufactures for original equipment manufacturers of complex products, including optical communication components, modules and subsystems, automotive components, medical devices, industrial lasers and sensors. It maintains engineering and manufacturing resources in Thailand, the United States, China and Israel.

Share Repurchase Expansion

The board approved an expansion of the share repurchase program, authorizing the repurchase of up to an additional USD 103.0 million of ordinary shares. The addition brings the aggregate authorization under the existing program to USD 637.3 million. The company did not state the amount already used within that total in the press release, so the remaining capacity cannot be derived from the release alone.

Second-Quarter Guidance Markers

For the second fiscal quarter ending December 25, 2026, the company projects revenue of USD 1.6 billion to USD 1.65 billion, GAAP net income per diluted share of USD 3.81 to USD 3.96 and non-GAAP net income per diluted share of USD 4.77 to USD 4.92, on about 36.2 million fully diluted shares. The midpoint of the revenue range, USD 1.625 billion, is about 10% above the first-quarter figure by our calculation, and the non-GAAP earnings per share midpoint of USD 4.85 is about 12% above the USD 4.34 just reported.

Guidance for non-GAAP earnings excludes share-based compensation and certain non-recurring items, and a reconciliation to the GAAP measure is included at the end of the company's release. Items to track include program concentration, the pace of new product ramps, the gap between GAAP and non-GAAP earnings, and deployment of the enlarged repurchase authorization.