Fabrinet, a contract manufacturer specializing in optical interconnect solutions, reported a 45% revenue surge in the fourth quarter of fiscal 2026, fueled by strong demand in data center and artificial intelligence infrastructure segments.
The company’s Q4 FY2026 revenue reached $1.2 billion, up from $830 million in the same period a year earlier. Gross margin expanded to 12.1%, compared with 10.8% in Q4 FY2025, reflecting improved operational efficiency and higher-value product mix.
Management highlighted data center connectivity as the primary growth driver, with AI-related deployments accelerating across hyperscale cloud providers and enterprise networks. The company also noted contributions from optical modules used in high-performance computing and 5G infrastructure.
For the full fiscal year 2026, Fabrinet reported revenue of $4.1 billion, a 38% increase from $2.97 billion in FY2025. Operating income rose 52% to $320 million, while net income climbed 55% to $245 million.
The company’s guidance for Q1 FY2027 anticipates revenue between $1.15 billion and $1.25 billion, with gross margins projected at 11.8% to 12.3%. Analysts expect continued strength in data center demand, though potential supply chain disruptions remain a risk.
Fabrinet’s shares were up 3.2% in extended trading following the results.
