Fabrinet (FAN) AI Stock Analysis

Company Guidance

For the second quarter of fiscal 2027, Fabrinet anticipates revenue to be in the range of $1.6 billion to $1.65 billion, representing year-over-year growth of 43% at the midpoint, and anticipates non-GAAP EPS to be between $4.77 and $4.92; growth is expected to be led by data center revenue, with expansion from data center interconnect and transceiver programs and new program ramps continuing increasingly over the course of the year, complemented by sequential and year-over-year growth in communication infrastructure and automotive, industrial and other revenue. The company expects efficiencies and leverage to drive incremental improvements in margins, operating margin to continue to expand as it grows through 2027 and the years ahead, and no more headwinds from exchange rates going to the second half of fiscal 2027; it expects NPO contributions toward the latter half of this fiscal year and CPO contributions toward the end of fiscal 2027, while normal CapEx is expected to be at about 5% of the revenue run rate for the year, with further increases from Building 11 and additional capacity.