
Fabrinet (FN) Stock Forecast & Price Target
Fabrinet (FN) Analyst Ratings
Bulls say
Fabrinet experienced significant growth in its telecom segment, with sales increasing by 59% year-over-year and 15% quarter-over-quarter, reaching $505 million, driven by strong demand for 400G/800G ZR shipments and contributions from Ciena's WaveLogic program. The company's overall revenues for the first quarter of 2026 rose by 22% year-over-year and 8% quarter-over-quarter, totaling $978 million, which exceeded estimates by approximately $50 million. Additionally, Fabrinet's successful customer integration strategy and the anticipated ramp-up of new production capacity exceeding $2 billion by the end of fiscal 2026 underscore a robust outlook for sustained growth and operational effectiveness.
Bears say
Fabrinet has experienced a notable decline in its Datacom revenues, which fell 1% quarter-over-quarter and 17% year-over-year, coming in at $273 million, primarily due to issues with laser supply. The company's gross margins (GMs) decreased to 12.3%, reflecting a decline of 30 basis points quarter-over-quarter and 40 basis points year-over-year, exacerbated by foreign exchange headwinds and annual merit increases. Additionally, the company faces significant risks related to pricing pressure and potential losses in market share due to delays in placing large orders with suppliers, which could severely impact overall profitability if current adverse conditions persist.
This aggregate rating is based on analysts' research of Fabrinet and is not a guaranteed prediction by Public.com or investment advice.
Fabrinet (FN) Analyst Forecast & Price Prediction
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