"Fabrinet's revenue growth accelerated from 19.17% in Q3 FY2025 to 35.9% in Q2 FY2026, marking the fastest growth since the company's IPO."
"The high-performance computing segment contributed $86 million in Q2, significantly up from $15 million in Q1, linked to a new partnership with Amazon Web Services."
"CEO Seamus Grady indicated that the HPC program is expected to reach north of about $150 million when it is fully ramped."
"Demand for data center interconnect is described as very strong and durable, indicating a solid foundation for future revenue growth."
Fabrinet's stock price increased from $174.02 to $610.18, reflecting a 250.64% rise over the past year. The company trades at a trailing P/E of 53x, with a forward P/E of 13x, indicating strong earnings growth. Recent revenue reached $1.13 billion, a 35.9% year-over-year increase. Analysts maintain a consensus target of $582.22, suggesting the stock is fairly valued. Key growth drivers include high-performance computing, durable data center interconnect demand, and emerging revenue from co-packaged optics programs.
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