Fabrinet Projects $1.2B Q3 Revenue, Leverages 800ZR and AI Optics Ramps
Fabrinet’s upcoming 800ZR ramp at Building 10 and Pinehurst conversion, plus co-packaged optics with three customers and AI-driven DCI and HPC demand, support share gains in Q3 fiscal 2026. Management forecasts Q3 revenue of $1.15-$1.20 billion and non-GAAP EPS of $3.45-$3.60 as HPC revenue climbs from $85.6 million to over $150 million per quarter.
1. Next-generation optical modules
Fabrinet’s 800ZR transceivers have not yet ramped and are scheduled for production at Building 10 and Pinehurst. These modules target accelerating datacenter interconnect, telecom and high-performance computing demand, creating an incremental catalyst as hyperscale and merchant customers prepare deployments just quarters away.
2. Capacity expansion and co-packaged optics
The company is converting sites at Pinehurst and commissioning a new Building 10, funded through cash flow without debt, to alleviate production bottlenecks. Fabrinet is collaborating on co-packaged optics with three major customers and developing optical circuit switching aligned to customer roadmaps, reinforcing its second-source role for AWS HPC programs.
3. Financial outlook and AI-driven growth
In Q2 fiscal 2026, HPC contributed $85.6 million, and management expects this program to exceed $150 million per quarter within the next two quarters. For Q3 fiscal 2026, revenue guidance of $1.15-$1.20 billion and non-GAAP EPS of $3.45-$3.60 reflect strong sequential growth across AI optics, telecom, DCI and HPC segments.