Fabrinet Sees 35% Q3 Growth with HPC Revenues Heading to $150M+
Fabrinet's shares jumped 24.9% as accelerating Telecom and DCI revenues and an $85.6M HPC segment haul in Q2 fiscal 2026 drove performance. Management expects HPC to surpass $150M per quarter soon and guides Q3 fiscal 2026 revenue growth of 35% year-over-year with non-GAAP earnings of $3.45 to $3.60 per share.
1. Monthly Share Performance and Revenue Drivers
Fabrinet shares climbed 24.9% over the past month, driven by easing datacom constraints, ramping Telecom and Datacenter Interconnect contracts, and continued scaling in its High-Performance Computing segment.
2. Q2 Fiscal 2026 Results
In Q2 fiscal 2026, Fabrinet reported revenue of $1.13 billion, up 36% year-over-year and 16% sequentially, and non-GAAP EPS of $3.36, beating expectations by 5.03% on revenue and 3.07% on earnings.
3. Q3 Guidance and HPC Outlook
Management forecasts Q3 fiscal 2026 revenue of $1.15–$1.20 billion (35% year-over-year growth) and non-GAAP EPS of $3.45–$3.60, while expecting HPC quarterly revenue to exceed $150 million within the next couple of quarters.
4. Balance Sheet Strength and Valuation
Fabrinet ended Q2 with $961.5 million in cash and short-term investments, zero debt and $169 million remaining in its share repurchase program, supporting financial flexibility and justifying a premium valuation.