Q4 2026 Fabrinet Earnings Call Transcript
Key Points
- Record Q4 revenue of $1.316 billion, up 45% year-over-year, exceeding guidance.
- Non-GAAP EPS of $4.10 beat expectations, with full-year EPS up 39%.
- Data center revenue grew 68% year-over-year, now 51% of total revenue, driven by DCI and HPC.
- Strong capacity expansion with Building 10, Pinehurst conversion, and new acquisitions, supporting future growth.
- Diversified customer base with four customers each over 10% of revenue, reducing concentration risk.
- Gross margin declined 30 basis points year-over-year.
- Free cash flow was negative $37 million in Q4 due to heavy capex.
- Component supply constraints, especially for high-profile parts, could limit growth.
- Thailand's top-up tax regime creates uncertainty for future tax expense.
- First quarter fiscal 2027 guidance implies a sequential EPS decline due to seasonality.
Good afternoon. Welcome to Fabrinet's Financial Results Conference Call for the Fourth Quarter of Fiscal Year 2026. (Operator Instructions) As a reminder, today's call is being recorded. I would now like to turn the call over to your host, Garo Toomajanian, Vice President of Investor Relations.
Thank you, operator, and good afternoon, everyone. Thank you for joining us on today's conference call to discuss Fabrinet's financial and operating results for the fourth quarter of fiscal year 2026, which ended June 26, 2026. With me on the call today are Seamus Grady, Chairman and Chief Executive Officer; and Csaba Sverha, Chief Financial Officer.
This call is being webcast, and a replay will be available on the Investors section of our website located at investor.fabrinet.com. During this call, we will present both GAAP and non-GAAP financial measures.
Please refer to the Investors section of our website for important information, including our earnings press release and
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