Short answer
Fabrinet (FN) filed its fiscal 2026 10-K annual report with the SEC on Aug 18, 2026. It reported revenue of $4.6B (+35.7% year over year) and net income of $473M.
- Top risk flagged: U.S. IRS tax audit 2022-23 resulted in additional $5.6M tax liability, including interest and penalties, paid during FY 2025 and 2026
FY2026 key financial metrics · XBRL
- Revenue
- $4.6B
- +35.7% YoY
- Net income
- $473M
- +42.3% YoY
- Operating margin
- 10.0%
- +0.5 pp YoY
- Gross margin
- 12.0%
- −0.1 pp YoY
- EPS (diluted)
- $13.05
- +42.3% YoY
- ROE
- 19.3%
- +2.5 pp YoY
- Operating cash flow
- $257M
- −21.8% YoY
Source: XBRL data from the Fabrinet (FN) FY2026 10-K on SEC EDGAR. USD.
Fabrinet FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: advanced optical, electro-mechanical, electronic manufacturing services for OEMs in optical communications, automotive, industrial lasers, medical, sensors
- New reporting structure splitting revenue into data center (47.9%), communications infrastructure (33.3%), and automotive/industrial/other (18.8%) segments
- Strategic emphasis on expanding data center and communications infrastructure markets with increased revenue share, while automotive/industrial markets declined
- Revenue surged 35.7% to $4.64 billion; workforce expanded to approx. 21,521 employees globally
- Recognized $57.4 million current income tax expense related to enacted OECD Pillar Two UTPR legislation impacting effective tax rates
Management Discussion & Analysis
- Revenue $4.64B, up 35.7% YoY from $3.42B in 2025; data center up $645.2M (+40.8%), communications infrastructure up $497M (+47.4%)
- Operating margin 10.0% vs 9.4% in 2025; gross margin 12.0% vs 12.1%, SG&A margin 2.0% vs 2.6%
- Best segment: communications infrastructure $1.55B (+47.4% YoY); worst segment: automotive, industrial and others $869.6M (+10.1%)
- Capex $299M in 2026, up from $131M in 2025; cash provided by operations $257M vs $328M; share repurchases decreased, dividends not specified
- Guidance: SG&A expected to increase in 2027; capex to rise for facility expansion including new California building; risks from macroeconomic conditions and customer concentration
Risk Factors
- U.S. IRS tax audit 2022-23 resulted in additional $5.6M tax liability, including interest and penalties, paid during FY 2025 and 2026
- Revenue exposure: 57.4% of FY 2026 revenues from four customers; loss or order reduction from any could materially harm business
- Supply chain risk: Semiconductor shortage with wafer lead times up to 30 weeks disrupting production and increasing costs
- Competitive threat: Internal manufacturing by customers and competitors like Jabil Inc. and Sanmina Corp. intensify pricing pressure
- Political risk: Majority manufacturing in Thailand exposed to political unrest, labor wage increases, and potential loss of tax incentives
Generated from the filing text; verify against the original. How to read a 10-K
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