A precision manufacturer that builds complex optical, laser, and sensor products for other companies, counting tech giants like NVIDIA and Cisco among its customers. Fabrinet was founded in 2000 by Tom Mitchell, a co-founder of Seagate Technology, who started it by taking over a former Seagate factory in Chokchai, Thailand. Its name is a portmanteau of "fabrication" and "network," and its signature "factory-within-a-factory" model lets each customer run its own physically separated production space to protect secrets.
10-K · Fiscal year ended Jun 26, 2026 · SEC filing ↗
Fabrinet's FY2026 revenue rose 35.7% to $4.64B as data center and communications infrastructure demand drove growth, while customer concentration intensified to 57.4% across four accounts.
Four customers now make up 57.4% of , up from 45.8% a year ago. Revenue rose 35.7% to $4.64 billion and rose 42.3% to $13.05, driven by data center and communications infrastructure demand, though was flat at 12.0% and fell to $4.2 million as inventories nearly doubled. The company is debt-free and building new capacity, but its growth is tied to a shrinking pool of large customers.
Key takeaways
rose 35.7% to $4,641.1 million in FY2026, driven by higher demand from key customers for data center products (47.9% of revenue) and communications infrastructure products (33.3%).
Four customers each contributed 10% or more of — Cisco (19.9%), NVIDIA (16.3%), Nokia (10.7%), and Amazon (10.5%) — together accounting for 57.4%, up from 45.8% across two customers in FY2025.
was essentially flat at 12.0% versus 12.1% as cost of revenues increased in line with sales volume, while rose 42.3% to $473.0 million, aided by a $56.7 million on the Raytek Semiconductor investment.
Section summaries
Business
Fabrinet provides advanced optical packaging and precision manufacturing services to OEMs, with FY2026 revenue up 35.7% to $4.64B.
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Fabrinet serves OEMs in optical communications, automotive, industrial lasers, medical, and sensors, offering process design, supply chain management, , advanced packaging, integration, final assembly, and testing.
Beginning in Q4 FY2026, the company recast into three categories: data center (47.9%), communications infrastructure (33.3%), and automotive, industrial and other markets (18.8%).
fell to $4.2 million from $207.3 million as inventories nearly doubled to $1,021.2 million and trade rose to $1,017.9 million, while rose to $298.9 million for new manufacturing capacity.
The rose to 14.8% from 6.4%, primarily due to a $57.4 million current income tax expense from enacted OECD legislation.
The company ended FY2026 debt-free with $875.1 million in cash and short-term investments, and the PRC Supreme Court accepted the Casix unjust-enrichment case for retrial in July 2026.
What changed
Customer concentration flagged at 45.8% across two customers in FY2025 widened to 57.4% across four customers in FY2026, with Nokia and Amazon joining NVIDIA and Cisco above the 10% threshold.
, watched for pressure from U.S. tariffs and Thai baht volatility after the FY2025 dip to 12.1%, held essentially flat at 12.0% in FY2026 as cost of revenues tracked sales volume.
The Casix RMB 400 million unjust-enrichment claim, previously dismissed on jurisdictional grounds and upheld on appeal in November 2025, was accepted for retrial by the PRC Supreme Court in July 2026; liability remains unquantified.
FY2026 rose to $298.9 million from $130.7 million in FY2025, exceeding the projected decrease, as the company invested in new manufacturing capacity including the Chonburi campus building and a newly acquired Pathum Thani facility.
The company recast its reporting in Q4 FY2026 into three categories — data center (47.9%), communications infrastructure (33.3%), and automotive, industrial and other (18.8%) — replacing the prior optical and non-optical segmentation.
What to watch
Q1 FY2027 from the four customers now at 57.4% of sales, given non-binding sub-13-week commitments and ongoing customer consolidation reducing the addressable pool.
FY2027 against U.S. tariff costs, Thai baht movement, and the ramp of new manufacturing capacity after the flat 12.0% FY2026 result.
FY2027 and levels after the near-doubling of inventories to $1,021.2 million and the $4.2 million free cash flow result in FY2026.
Casix retrial outcome in the PRC Supreme Court and any quantified liability for the RMB 400 million claim.
FY2026 rose 35.7% to $4.64 billion, with four customers each contributing 10% or more: Cisco (19.9%), NVIDIA (16.3%), Nokia (10.7%), and Amazon (10.5%).
The company differentiates through vertical integration into customized optics and glass, a 'factory-within-a-factory' IP-protection model, and centers in Silicon Valley and Israel that transfer volume production to Thailand.
Fabrinet recognized $57.4 million of current income tax expense related to enacted OECD legislation for FY2026.
As of June 26, 2026, the company employed approximately 21,521 full-time employees, with about 21,221 in Asia-Pacific and 300 in North America.
Customer concentration, market consolidation, and supply-chain/tariff pressures are the dominant risks for this precision optical manufacturer.
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Four customers each contributed 10%+ of in FY2026, together accounting for 57.4% of revenue, up from 45.8% in FY2025 and 48.5% in FY2024.
Data center products reached 47.9% of and communications infrastructure 33.3% in FY2026, making growth dependent on continued expansion of the optics and fiber-optic infrastructure markets.
Customer consolidation (e.g., Nokia-Infinera, Lumentum-NeoPhotonics, Coherent, Cisco-Acacia) has reduced the customer pool and increased pricing , with some customers moving manufacturing in-house.
The company cites ongoing supply-chain strain, semiconductor shortages, and evolving U.S./international tariffs and export controls as material risks to and gross margins.
A $57.4 million current income tax expense was recognized in FY2026 from enacted legislation, a newly emphasized tax risk.
Foreign exchange exposure is significant: the U.S. dollar depreciated about 9.4% against the Thai baht and 6.6% against the RMB since June 28, 2024, and a $3.2 million FX loss hit Q2 FY2026.
We own or lease manufacturing, engineering and administrative facilities in Thailand, the People's Republic of China ("PRC"), the United States, Israel and the Cayman Islands. We believe these facilities are suitable and adequate to support our current operations and expected ne…
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We own or lease manufacturing, engineering and administrative facilities in Thailand, the People's Republic of China ("PRC"), the United States, Israel and the Cayman Islands. We believe these facilities are suitable and adequate to support our current operations and expected near-term growth.
The following table summarizes our principal properties as of June 26, 2026:
Country Principal Use Owned/Leased Approximate Square Footage (Square feet)
Thailand Manufacturing, warehouse and administrative Owned 3,875,000
China PRC Manufacturing, warehouse and administrative Leased 348,000
United States Manufacturing, warehouse and administrative Owned / Leased 100,000
Israel Manufacturing, warehouse and administrative Leased 27,000
Cayman Islands Registered office Leased 1,280
Our Thailand facilities consist of multiple manufacturing campuses. During fiscal 2026, we acquired an additional facility in Pathum Thani, Thailand, which is currently undergoing renovation. We expect the facility to support future manufacturing capacity and operational growth upon completion.
Company discloses one material pending case: a China unjust-enrichment suit against its Casix subsidiary, now accepted for retrial by the PRC Supreme Court.
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Ngan In Leng and First Laser Limited sued FEHC, Jian An Investment Limited, and Casix, Inc. in Fuzhou Intermediate People's Court in June 2024.
The complaint alleges unjust enrichment from a purported 1997 investment in Casix, predating the company's acquisition of Casix from JDS Uniphase Corporation.
Plaintiffs sought RMB 400 million plus interest from March 1, 2000, with Jian and Casix jointly and severally liable for FEHC's payment obligations.
The Fuzhou court dismissed the case on jurisdictional grounds in September 2024, and the Fujian High People's Court upheld that dismissal in November 2025.
In July 2026, the PRC Supreme Court accepted the case for retrial after an initial hearing, but this acceptance is not a merits determination.
The company states it cannot quantify potential liability due to the early stage of the litigation, and believes no other pending matters are material individually or in aggregate.
FY2026 revenue rose 35.7% to $4.64B, driven by data center and communications infrastructure demand; net income rose 42.3% to $473.0M.
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Total revenues increased $1,221.8 million, or 35.7%, to $4,641.1 million in fiscal 2026, driven by higher key-customer demand for data center and communications infrastructure products.
Data center grew 40.8% to $2,225.1 million, communications infrastructure grew 47.4% to $1,546.4 million, and automotive, industrial and other grew 10.1% to $869.6 million.
rose 34.6% to $556.5 million, but was essentially flat at 12.0% versus 12.1% as cost of revenues increased in line with sales volume.
SG&A expenses rose 6.9% to $93.5 million, mainly from higher IT, executive compensation, R&D, and costs.
increased to 14.8% from 6.4%, primarily due to $57.4 million of current income tax expense from enacted legislation.
Cash and short-term investments totaled $875.1 million with no outstanding debt; fell to $256.7 million from $328.4 million on higher inventories and .
rose to $298.9 million from $130.7 million, and the company expects further increases in fiscal 2027 for new manufacturing capacity.
Quantitative and Qualitative Disclosures About Market Risk
Company faces modest interest-rate risk on cash and investments and significant Thai baht/RMB currency risk, hedged with short-dated forwards.
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Cash, cash equivalents, and short-term investments totaled $875.1 million as of June 26, 2026, down from $934.2 million a year earlier.
A 10-basis-point decline in interest rates would have reduced interest income by about $0.9 million in fiscal 2026, assuming consistent investment levels.
Most revenues are U.S.-dollar denominated, while a substantial portion of payroll and operating expenses are paid in Thai baht and RMB, so a weaker dollar pressures margins and profitability.
The company hedges Thai baht forecasted transactions with foreign currency forward contracts of one to twelve months, designated as cash flow hedges, leaving longer-term exposure unhedged.
A 10% weakening of the U.S. dollar against the Thai baht and RMB would have decreased the net dollar position by about $20.4 million as of June 26, 2026.
The company recorded a $2.8 million unrealized loss in fiscal 2026 on derivatives not designated as hedging instruments, versus a $1.9 million unrealized gain in fiscal 2025.
Credit risk is considered limited: cash is held with institutions rated A- or above and short-term investments are rated A1, P-1, F1 or better.