Fabrinet Reports 51% Year-Over-Year Revenue Growth Driven by Data Center Demand
Fabrinet (FN) delivered strong first-quarter fiscal 2027 results, reporting revenue of $1.47 billion, a 51% increase year-over-year. This growth was primarily fueled by the data center segment, which saw revenue surge 78% to $777.5 million, now accounting for over half of the company's total revenue. Non-GAAP EPS reached $4.34, marking the 14th consecutive quarter of growth and exceeding previous guidance. The company is currently in a heavy investment phase, characterized by significant capital expenditures for capacity expansion in Thailand and Santa Clara. While these investments led to a free cash flow outflow of $137.4 million, management expects substantial long-term returns, projecting total revenue capacity to reach $10 billion as new facilities come online through 2028. Despite slight gross margin compression due to foreign exchange headwinds, operating margins improved due to increased operating leverage.
Tickers: $FN
Topics: Data Center Revenue EPS Beat Financial Results Revenue Growth
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