Fabrinet reported record fourth-quarter revenue of $1.316 billion for fiscal 2026, an increase of approximately 45% from $909.7 million in the corresponding period a year earlier. The Thailand-centred advanced-manufacturing company also closed the year with revenue of $4.64 billion, up 36% from $3.42 billion in fiscal 2025.
The company manufactures advanced optical, electro-mechanical and electronic products for original-equipment manufacturers operating across optical communications, data infrastructure, industrial systems, automotive technology, medical devices, lasers and sensors. Its production footprint includes Thailand, the United States, China and Israel.
Fourth-quarter GAAP net income rose to $139.3 million from $87.2 million, while diluted GAAP earnings increased to $3.83 per share from $2.42. On a non-GAAP basis, quarterly net income reached $149.1 million, compared with $95.6 million a year earlier, with diluted earnings increasing to $4.10 per share from $2.65.
For the full financial year, GAAP net income increased to $473 million from $332.5 million. Diluted GAAP earnings reached $13.05 per share, up from $9.17, while non-GAAP net income rose to $510.9 million and non-GAAP diluted earnings reached $14.09 per share.
Chief executive Seamus Grady attributed the performance to accelerating growth and multiple demand drivers across the business. Fabrinet expects revenue of between $1.375 billion and $1.425 billion for the quarter ending September 25, 2026. It forecast GAAP diluted earnings of $3.39 to $3.54 and non-GAAP diluted earnings of $4.10 to $4.25.
The results also show the working-capital and investment requirements associated with the company’s expansion. Inventories increased to approximately $1.02 billion from $581 million over the year, while trade receivables rose to roughly $1.02 billion from $759 million. Property, plant and equipment increased to $615 million from $381 million.
Capital expenditure for fiscal 2026 reached $252.5 million, more than double the prior year’s $121.1 million. Operating cash flow declined to $256.7 million from $328.4 million, while full-year non-GAAP free cash flow was $4.2 million, compared with $207.3 million in fiscal 2025. The fourth quarter produced negative free cash flow of $36.9 million as investment and working-capital requirements increased.
Fabrinet’s performance offers a direct view into the expansion of Asian optical and precision-electronics production supporting data-centre and communications infrastructure. Optical transceivers, advanced packaging and high-complexity manufacturing are increasingly important as AI clusters require higher-bandwidth, lower-latency connections between processors, servers and data-centre networks.
