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The numbers are doing backflips
Fabrinet came out swinging in Q2 fiscal 2026, and the market noticed. Revenue hit a record $1.13 billion, up 36% from a year ago and 16% from last quarter, while non-GAAP EPS of $3.36 beat estimates. Not exactly the sort of report you skim and move on from.
The secret sauce: optical communications
The real story here is that Fabrinet’s optical communications business is still the main event. That segment brought in $833 million, up 29% year over year, helped by telecom revenue that surged 59% to $554 million and data center interconnect revenue that jumped 42% to $142 million.
That’s investor candy if you think demand for high-speed networking gear has legs. In plain English: more AI infrastructure, more data center traffic, more need for the plumbing that keeps everything talking to everything else.
Why the stock is getting a tailwind
Fabrinet has already climbed 9.2% over the past three months, and this report explains why. The company is trading at about 3.58x forward sales, which looks relatively cheap next to some peers — but only if the growth keeps showing up in the mailbox.
Management also said telecom and datacom should keep growing in Q3, which gives bulls a fresh excuse to stay enthusiastic. Big picture: Fabrinet isn’t a flashy consumer brand, but it’s increasingly looking like one of those behind-the-scenes picks-and-shovels names that investors love when the data center buildout story is running hot.