
Fabrinet (FN) Stock Forecast & Price Target
Fabrinet (FN) Analyst Ratings
Bulls say
Fabrinet has demonstrated robust growth, with telecom sales surging 59% year-over-year and 15% quarter-over-quarter, driven by strong demand for 400G/800G ZR shipments and contributions from Ciena's WaveLogic program. The company reported total revenues of $978 million for the first quarter of fiscal year 2026, reflecting a 22% increase year-over-year and exceeding expectations by approximately $50 million. Additionally, Fabrinet's strategic integration of optic component production with systems manufacturing is enhancing its competitiveness, while the anticipated addition of over $2 billion in new production capacity by the end of fiscal year 2026 positions the company for continued growth.
Bears say
Fabrinet's financial outlook is negatively impacted by a 1% quarter-over-quarter and a significant 17% year-over-year decline in Datacom revenues, totaling $273 million, attributed to laser supply issues. Additionally, the company's gross margins decreased by 30 basis points quarter-over-quarter and 40 basis points year-over-year to 12.3%, falling short of estimates due to foreign exchange headwinds and rising operational costs from merit increases. The risks of pricing pressure, productivity challenges amid persistent supply constraints, and the potential loss of revenues and market share from not securing timely supplier orders further exacerbate the company's negative financial outlook.
This aggregate rating is based on analysts' research of Fabrinet and is not a guaranteed prediction by Public.com or investment advice.
Fabrinet (FN) Analyst Forecast & Price Prediction
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