Fabrinet Beats Earnings Estimates, but Stock Drops 11%
On August 18, 2026, Fabrinet (NYSE:FN) reported strong fiscal fourth-quarter results with adjusted earnings of $4.10 per share and revenue rising to $1.32 billion—both exceeding expectations. Despite these positive numbers, the stock fell by 11% in premarket trading. The decline was attributed partly to a weaker-than-expected data communications segment and reduced sales from one of Fabrinet's largest customers, Nvidia. Revenue from Nvidia dropped 21% year-over-year to $742 million, signaling potential risks for the company’s reliance on key clients. Analysts noted that while AI infrastructure spending is accelerating overall, not all parts of suppliers like Fabrinet are equally benefiting. Fabrinet's CEO expressed confidence in sustained data-center demand and raised guidance for the next quarter above expectations. However, investors reacted negatively to underlying business risks such as customer concentration and segment underperformance.
Topics: AI Infrastructure Earnings Beat Fabrinet Nvidia Stock Drop