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Fabrinet Is Moving Deeper Into HPC—Can It Scale Beyond a Secondary Supplier Role?

Fabrinet’s recent financial performance in the second quarter of fiscal year 2026 has demonstrated significant growth, surpassing its own projections. Revenue hit a record $1.13 billion, marking a 36% year-over-year increase and a 16% sequential rise. This performance represents Fabrinet’s fastest growth since its IPO over a decade and a half ago. Non-GAAP EPS also reached a new high at $3.36 per share, exceeding guidance despite adverse foreign exchange impacts. The company’s growth was driven by substantial contributions from various key strategic programs. In optical communications, revenue rose 29% from the previous year, with telecom revenue alone growing 59% annually and 17% quarterly. The data center interconnect (DCI) sector also saw a 42% year-over-year revenue boost, indicating strong demand continuity. Although datacom revenue was down 7% year-over-year, it showed a 2% quarter-over-quarter growth, hinting at a positive momentum shift.