Description

Fabrinet: A 39% Growth Quarter Faces Fourth Quarter Supply Headwinds!

Fabrinet reported a strong third-quarter fiscal 2026 performance with revenue reaching a record $1.214 billion, surpassing guidance and reflecting a 39% year-over-year increase and 7% sequential growth. Non-GAAP earnings per share (EPS) also exceeded expectations at $3.72. The company’s growth was driven primarily by its Optical Communications segment, particularly Telecom revenues which surged 55% year-over-year to $628 million. Within Telecom, data center interconnect (DCI) revenue grew impressively by 90% year-over-year and 38% sequentially, offsetting softer Datacom revenue that rose just 4% year-over-year but declined 6% sequentially due to component supply constraints. Fabrinet indicated that strong demand for Datacom products continues to outpace supply, affected by shortages in lasers, memory, ASICs, and other materials. Supply constraints limited their ability to fully capitalize on demand and are expected to persist into the fourth quarter.