Earnings release
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Fabrinet Announces First Quarter Fiscal Year 2027 Financial Results November 2, 2026 Record First Quarter Revenue Increased 51% From Prior Year, Exceeding Guidance Range BANGKOK, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced its financial results for its first fiscal quarter ended September 25, 2026. Seamus Grady, Chairman and Chief Executive Officer of Fabrinet, said, “Fiscal year 2027 is off to an excellent start with record revenue and non-GAAP earnings per share that were well above our guidance ranges. Broad-based demand across multiple significant programs drove these results, with new product ramps further supporting our growth. We enter the second quarter with exceptional momentum that makes us confident that we can deliver another strong performance.” First Quarter Fiscal Year 2027 Financial Highlights GAAP Results Revenue for the first quarter of fiscal year 2027 was $1,474.5 million, compared to $978.1 million for the first quarter of fiscal year 2026. GAAP net income for the first quarter of fiscal year 2027 was $103.5 million, compared to $95.9 million for the first quarter of fiscal year 2026. GAAP net income per diluted share for the first quarter of fiscal year 2027 was $2.86, compared to $2.66 for the first quarter of fiscal year 2026. Non-GAAP Results Non-GAAP net income for the first quarter of fiscal year 2027 was $157.4 million, compared to $105.3 million for the first quarter of fiscal year 2026. Non-GAAP net income per diluted share for the first quarter of fiscal year 2027 was $4.34, compared to $2.92 for the first quarter of fiscal year 2026. Share Repurchase Program Expanded Fabrinet also announced that its Board of Directors has approved an expansion of its share repurchase program, authorizing the repurchase of up to an additional $103.0 million of Fabrinet’s ordinary shares. The addition brings the aggregate authorization under Fabrinet’s existing share repurchase program to $637.3 million. Business Outlook Based on information available as of November 2, 2026, Fabrinet is issuing guidance for its second fiscal quarter ending December 25, 2026, as follows: Fabrinet expects second quarter revenue to be in the range of $1.6 billion to $1.65 billion. GAAP net income per diluted share is expected to be in the range of $3.81 to $3.96, based on approximately 36.2 million fully diluted shares outstanding. Non-GAAP net income per diluted share is expected to be in the range of $4.77 to $4.92, based on approximately 36.2 million fully diluted shares outstanding. Guidance for non-GAAP net income per diluted share excludes share-based compensation expenses and certain non-recurring items. A reconciliation of non-GAAP net income per diluted share to the corresponding GAAP measure is available at the end of this press release.
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Conference Call Information What: Fabrinet First Quarter Fiscal Year 2027 Financial Results Call When: November 2, 2026 Time: 5:00 p.m. ET Live Call and Replay: https://investor.fabrinet.com/events-and-presentations/events A recorded version of this webcast will be available approximately two hours after the call and accessible at http://investor.fabrinet.com. The webcast will be archived on Fabrinet’s website for a period of one year. About Fabrinet Fabrinet is a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and subsystems, automotive components, medical devices, industrial lasers and sensors. Fabrinet offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, advanced packaging, integration, final assembly and testing. Fabrinet focuses on production of high complexity products in any mix and any volume. Fabrinet maintains engineering and manufacturing resources and facilities in Thailand, the United States of America, the People’s Republic of China, and Israel. For more information visit: www.fabrinet.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include (1) our statement relating to our confidence that we will be able to deliver a strong performance in the second quarter of fiscal year 2027 and (2) all of the statements under the “Business Outlook” section regarding our expected revenue, GAAP and non-GAAP net income per share, and fully diluted shares outstanding for the second quarter of fiscal year 2027. These forward-looking statements involve risks and uncertainties, and actual results could vary materially from these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: changes in general economic conditions, either globally or in our markets, and the risk of recession or an economic downturn; disruption to our supply chain, which could increase our costs and affect our ability to procure parts and materials; less customer demand for our products and services than forecasted; less growth in the data center, communications infrastructure, automotive, industrial and other markets than we forecast; difficulties expanding into additional markets, such as the semiconductor processing, biotechnology, metrology and materials processing markets; increased competition in the optical manufacturing services markets; difficulties in delivering products and services that compete effectively from a price and performance perspective; our reliance on a small number of customers and suppliers; difficulties in managing our operating costs; difficulties in managing and operating our business across multiple countries (including Thailand, the People’s Republic of China, Israel and the U.S.); and other important factors as described in reports and documents we file from time to time with the Securities and Exchange Commission (SEC), including the factors described under the section captioned “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on August 18, 2026. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise. Non-GAAP Financial Measures In addition to reporting financial results in accordance with GAAP, we provide investors with certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. We believe these non-GAAP financial measures provide investors with useful supplemental information to: (1) measure company performance against historical results, (2) facilitate comparisons to our competitors’ operating results, and (3) allow greater transparency with respect to information used by management in making financial and operational decisions. In addition, we use some of these non-GAAP financial measures to measure company performance for the purposes of determining employee incentive plan compensation. Non-GAAP gross profit, non-GAAP operating profit, non-GAAP net income and non-GAAP net income per diluted share exclude: share-based compensation expenses; severance payment and others; restructuring and other related costs; legal and litigation costs; non-marketable equity securities revaluation; and charges arising from the implementation or application of the OECD Pillar Two global minimum tax framework, including charges resulting from changes in implementing regulations, administrative guidance or related governmental measures. We have excluded these items in order to enhance investors’ understanding of our underlying operations. Non-GAAP free cash flow is net cash provided by (used in) operating activities, minus capital expenditures (purchase of property, plant and equipment). We use free cash flow to measure our ability to generate additional cash from our business operations. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We urge you to review the reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. Investor Contact: Garo Toomajanian ir@fabrinet.com FABRINET CONDENSED CONSOLIDATED BALANCE SHEETS
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(in thousands of U.S. dollars, except share data and par value) September 25, 2026 June 26, 2026 (unaudited) Assets Current assets Cash and cash equivalents $ 392,326 $ 346,711 Short-term investments 363,427 528,344 Trade accounts receivable, net of allowance for expected credit losses of $1,042 and $1,050, respectively 1,161,412 1,017,933 Inventories 1,193,094 1,021,235 Prepaid expenses 48,879 49,915 Other current assets 262,233 195,571 Total current assets 3,421,371 3,159,709 Non-current assets Long-term restricted cash 918 704 Property, plant and equipment, net 778,230 615,067 Intangibles, net 2,278 2,458 Operating right-of-use assets 3,613 3,974 Deferred tax assets 19,429 19,229 Non-marketable equity securities 67,647 89,103 Other non-current assets 24,150 20,717 Total non-current assets 896,265 751,252 Total Assets $ 4,317,636 $ 3,910,961 Liabilities and Shareholders’ Equity Current liabilities Long-term borrowings, current portion, net $ 11,211 $ — Trade accounts payable 1,269,073 1,005,761 Fixed assets payable 96,037 86,018 Operating lease liabilities, current portion 926 1,189 Income tax payable 85,507 63,469 Accrued payroll, bonus and related expenses 32,208 29,850 Accrued expenses 36,676 56,549 Severance liabilities, current portion 2,315 2,319 Other payables 143,640 157,470 Total current liabilities 1,677,593 1,402,625 Non-current liabilities Long-term borrowings, non-current portion, net 63,528 — Deferred tax liability 2,519 1,654 Operating lease liability, non-current portion 2,655 2,824 Severance liabilities 32,843 31,776 Other non-current liabilities 22,444 17,826 Total non-current liabilities 123,989 54,080 Total Liabilities 1,801,582 1,456,705 Shareholders’ equity Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of September 25, 2026 and June 26, 2026) — — Ordinary shares (500,000,000 shares authorized, $0.01 par value; 39,797,868 shares and 39,722,708 shares issued as of September 25, 2026 and June 26, 2026, respectively; and 35,833,303 shares and 35,834,864 shares outstanding as of September 25, 2026 and June 26, 2026, respectively) 398 397 Additional paid-in capital 241,623 251,854 Less: Treasury shares (3,964,565 shares and 3,887,844 shares as of September 25, 2026 and June 26, 2026, respectively) (394,430) (365,287) Accumulated other comprehensive income (loss) (1,358) 968 Retained earnings 2,669,821 2,566,324 Total Shareholders’ Equity 2,516,054 2,454,256 Total Liabilities and Shareholders’ Equity $ 4,317,636 $ 3,910,961 FABRINET CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
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Three Months Ended (in thousands of U.S. dollars, except per share data) September 25, 2026 September 26, 2025 Revenues $ 1,474,459 $ 978,128 Cost of revenues (1,300,661) (861,689) Gross profit 173,798 116,439 Selling, general and administrative expenses (26,744) (22,246) Restructuring and other related costs (1,049) — Operating income 146,005 94,193 Interest income 5,539 9,417 Interest expense (231) — Foreign exchange gain (loss), net (220) (2,060) Other income (expense), net (21,592) (122) Income before income taxes 129,501 101,428 Income tax expense (26,004) (5,502) Net income 103,497 95,926 Other comprehensive income (loss), net of tax: Change in net unrealized gain (loss) on available-for-sale securities (4,145) (811) Change in net unrealized gain (loss) on derivative instruments 1,812 (2,062) Change in foreign currency translation adjustment 7 (89) Total other comprehensive income (loss), net of tax (2,326) (2,962) Net comprehensive income $ 101,171 $ 92,964 Earnings per share Basic $ 2.89 $ 2.68 Diluted $ 2.86 $ 2.66 Weighted-average number of ordinary shares outstanding (in thousands of shares) Basic 35,866 35,773 Diluted 36,233 36,097 FABRINET CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended (in thousands of U.S. dollars) September 25, 2026 September 26, 2025 Cash flows from operating activities Net income for the period $ 103,497 $ 95,926 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 21,700 14,860 (Gain) loss on disposal of property, plant and equipment and intangibles (124) (6) (Gain) loss on non-marketable equity securities 21,456 — (Gain) loss from sales and maturities of available-for-sale securities (73) — Amortization of discount (premium) of short-term investments (707) (1,222) Inventory obsolescence impairment 6,333 2,290 (Reversal of) allowance for expected credit losses (8) (45) Unrealized loss (gain) on exchange rate and fair value of foreign currency forward contracts 4,095 461 Share-based compensation 11,225 9,071 Customer warrant 2,455 286 Deferred income tax expense (benefit) 608 (106) Other non-cash expenses 135 66 Changes in operating assets and liabilities Trade accounts receivable (143,301) 51,821 Inventories (178,192) (143,469) Other current assets and non-current assets (81,171) (13,579) Trade accounts payable 262,069 59,508 Income tax payable 22,038 2,993 Accrued expenses (19,791) (2,539)
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Other payables (15,425) 23,284 Severance liabilities 1,112 826 Other current liabilities and non-current liabilities 3,356 2,142 Net cash provided by operating activities 21,287 102,568 Cash flows from investing activities Purchase of short-term investments (996) (110,329) Proceeds from sales of short-term investments 111,848 — Proceeds from maturities of short-term investments 50,700 74,789 Purchase of property, plant and equipment (158,698) (45,266) Purchase of intangibles (239) (169) Proceeds from disposal of property, plant and equipment 150 15 Net cash provided by (used in) investing activities 2,765 (80,960) Cash flows from financing activities Proceeds from long-term borrowings 74,828 — Repurchase of ordinary shares (29,143) (268) Withholding tax related to net share settlement of restricted share units (23,910) (22,697) Net cash provided by (used in) financing activities 21,775 (22,965) Net increase (decrease) in cash, cash equivalents and restricted cash $ 45,827 $ (1,357) Movement in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at the beginning of period $ 347,415 $ 306,425 Increase (decrease) in cash, cash equivalents and restricted cash 45,827 (1,357) Effect of exchange rate on cash, cash equivalents and restricted cash 2 (67) Cash, cash equivalents and restricted cash at the end of period $ 393,244 $ 305,001 Non-cash investing and financing activities Construction, software and equipment-related payables $ 96,037 $ 50,941 FABRINET CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows: As of (in thousands of U.S. dollars) September 25, 2026 September 26, 2025 Cash and cash equivalents $ 392,326 $ 305,001 Restricted cash 918 — Cash, cash equivalents and restricted cash $ 393,244 $ 305,001 FABRINET RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED) Reconciliation of GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Profit and Non-GAAP Gross Margin Three Months Ended (in thousands of U.S. dollars) September 25, 2026 September 26, 2025 Revenues $ 1,474,459 $ 978,128 Gross profit (GAAP) $ 173,798 11.8% $ 116,439 11.9% Share-based compensation expenses 4,203 3,519 Gross profit (Non-GAAP) $ 178,001 12.1% $ 119,958 12.3%
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Reconciliation of GAAP Operating Profit and GAAP Operating Margin to Non-GAAP Operating Profit and Non-GAAP Operating Margin Three Months Ended (in thousands of U.S. dollars) September 25, 2026 September 26, 2025 Revenues $ 1,474,459 $ 978,128 Operating profit (GAAP) $ 146,005 9.9% $ 94,193 9.6% Share-based compensation expenses 11,225 9,071 Restructuring and other related costs 1,049 — Severance payment and others 158 72 Legal and litigation costs 99 256 Operating profit (Non-GAAP) $ 158,536 10.8% $ 103,592 10.6% FABRINET RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED) Reconciliation of GAAP Net Income and EPS to Non-GAAP Net Income and EPS Three Months Ended September 25, 2026 September 26, 2025 (in thousands of U.S. dollars, except per share data) Net income Diluted EPS Net income Diluted EPS GAAP measures $ 103,497 $ 2.86 $ 95,926 $ 2.66 Items reconciling GAAP net income & EPS to non-GAAP net income & EPS: Related to cost of revenues: Share-based compensation expenses 4,203 0.12 3,519 0.10 Total related to cost of revenues 4,203 0.12 3,519 0.10 Related to selling, general and administrative expenses: Share-based compensation expenses 7,022 0.19 5,552 0.15 Legal and litigation costs 99 0.00 256 0.01 Severance payment and others 158 0.00 72 0.00 Total related to selling, general and administrative expenses 7,279 0.19 5,880 0.16 Related to restructuring and other related costs: Restructuring and other related costs 1,049 0.03 — — Total related to restructuring and other related costs 1,049 0.03 — — Related to other income and expense: Non-marketable equity securities revaluation 21,456 0.59 — — Total related to other income and expense 21,456 0.59 — — Related to income tax (benefit) expense Tax provision related to Pillar Two 19,885 0.55 — — Total related to income tax (benefit) expense 19,885 0.55 — — Total related to net income & EPS 53,872 1.48 9,399 0.26 Non-GAAP measures $ 157,369 $ 4.34 $ 105,325 $ 2.92 Shares used in computing diluted net income per share (in thousands of shares) GAAP diluted shares 36,233 36,097 Non-GAAP diluted shares 36,233 36,097 FABRINET RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED) (in thousands of U.S. dollars) Three Months Ended September 25, 2026 September 26, 2025
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Net cash provided by operating activities $ 21,287 $ 102,568 Less: Purchase of property, plant and equipment (158,698) (45,266) Non-GAAP free cash flow $ (137,411) $ 57,302 FABRINET GUIDANCE FOR QUARTER ENDING DECEMBER 25, 2026 RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES Diluted EPS GAAP net income per diluted share $3.81 to $3.96 Related to cost of revenues: Share-based compensation expenses 0.11 Total related to cost of revenues 0.11 Related to selling, general and administrative expenses: Share-based compensation expenses 0.25 Total related to selling, general and administrative expenses 0.25 Related to income tax (benefit) expense: Tax provision related to Pillar Two 0.60 Total related to income tax (benefit) expense 0.60 Total related to net income & EPS 0.96 Non-GAAP net income per diluted share $4.77 to $4.92 Source: Fabrinet