Fabrinet (FN)

Fabrinet (FN) is the precision contract manufacturer that builds much of the industry’s optical transceivers and modules for networking and AI OEMs. In ETFpedia it represents the Optical Networking & Photonics concept, because its optical-communications business, about 73% of revenue, rose 35% in the March 2026 quarter on AI data-center demand.

What does Fabrinet do?

Fabrinet is the outsourced factory behind the optical industry. It provides precision optical, electro-optical, and electronic contract manufacturing, assembling transceivers, modules, modulators, and components, for OEMs including Nvidia, Cisco, and Coherent. It does not design the parts; it builds them at scale and quality that are hard to replicate. Optical communications was about 73% of revenue in fiscal Q3 2026 (Fabrinet, May 4, 2026).

How is AI driving Fabrinet’s business?

As AI clusters consume more transceivers, the OEMs that design them lean on Fabrinet to manufacture them. Its optical-communications revenue grew 35% year over year in fiscal Q3 2026, and management said demand outran what it could ship.

We have evolved from being a niche optical component supplier into a diversified strategic ecosystem partner for leading OEMs for both optical components and systems across AI-driven growth in both datacom and telecom.

— Seamus Grady, Chairman & CEO, Fabrinet (fiscal Q3 2026 earnings call)

What did Fabrinet report most recently?

In fiscal Q3 2026 (the quarter ended March 27, 2026), Fabrinet posted record revenue of $1.214 billion, up 39% year over year, with non-GAAP EPS of $3.72 (Fabrinet). Optical communications, about 73% of revenue, rose 35%, while the smaller Non-Optical business (auto, industrial lasers, and high-performance compute) jumped 52% year over year to $326 million. On the earnings call, management said datacom shipments and revenue were held “well below demand levels” by component supply shortages in lasers, memory, and ASICs, and that datacom would otherwise have set a record by a wide margin (Fabrinet Q3 FY26 call).

What is Fabrinet’s guidance?

For fiscal Q4 2026, Fabrinet guided revenue to $1.25–1.29 billion and non-GAAP EPS to $3.72–3.87 (Fabrinet), about 40% revenue growth at the midpoint.

Why is Fabrinet part of optical networking?

Most of the named designers in the Optical Networking & Photonics theme outsource the actual building of their modules, and Fabrinet is where much of that happens. That makes it a neutral way to own the volume of AI optics regardless of which designer wins a given socket.

What are the risks for Fabrinet?

• Supply constraints. Component shortages capped datacom shipments and could persist near term.
• Thin margins. Contract-manufacturing gross margin is low (~12%), so program ramps and mix swings matter.
• Customer concentration. A handful of optical and networking OEMs drive demand tied to the AI capex cycle.
• Geographic concentration. Operations are concentrated in Thailand, adding supply-chain and geopolitical exposure.

Related securities, concepts & terms

• AI Infrastructureparent
• Optical Networking & Photonicsparent
• Coherent (COHR)sibling
• Lumentum (LITE)sibling

Related indices & ETFs

• KODEX US AI Optical Communication Network ETF (0173Y0) · Samsung Asset Management (KODEX)
  Korea-listed ETF tracking the Akros U.S. AI Optical index, the AI-optical-networking theme.

Frequently asked questions about Fabrinet

Sources & references

1. Fabrinet announces third quarter fiscal year 2026 financial results · Fabrinet / GlobeNewswire, 2026-05-04
2. Fabrinet (FN) Q3 fiscal 2026 earnings call transcript · The Motley Fool, 2026-05-04
3. Fabrinet announces third quarter fiscal year 2026 financial results (Form 8-K, Exhibit 99.1) · Fabrinet / SEC EDGAR, 2026-05-04
4. Fabrinet · investor relations and events · Fabrinet, 2026-06-02
5. NYSE listed company information · FN · New York Stock Exchange, 2026-06-02