Fabrinet (FN) Stock Price & How to Invest
Last updated July 2026
Short answer
Fabrinet (FN) is the contract manufacturer that builds much of the world's advanced optical hardware, from telecom transceivers to the data-center interconnect modules feeding AI clusters, and it is commonly treated as a picks-and-shovels way to hold the optics buildout without betting on any single module vendor. The catch is a contract-manufacturing margin structure near 12% gross paired with a growth multiple near 48 times trailing earnings.
FN stock price
As of 2026-08-18, Fabrinet (FN) last closed at $482.59, up 69.2% over the past year. Over the past 52 weeks it has traded between $277.04 and $746.47.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Fabrinet's investor relations page. Walnut is informational, not investment advice.
What does Fabrinet (FN) do?
Fabrinet is an outsourced manufacturing partner for companies that design complex optical and electro-mechanical products but do not want to build them. Its plants, concentrated in Thailand with additional sites in the United States, Israel, China and the United Kingdom, handle optical packaging, precision assembly and test for transceivers, lasers, sensors and interconnect modules. Customers are the optical component and networking vendors themselves, so Fabrinet's revenue tracks the aggregate volume shipped across the industry rather than the market share of any one designer. Recent annual filings have named Nvidia and Cisco among the customers exceeding 10% of revenue, and roughly 16,500 employees support the operation. The company is incorporated in the Cayman Islands, files with the SEC as a domestic filer and has traded on the NYSE since its 2010 IPO.
The investment picture rests on how long the current optics cycle runs. Trailing twelve-month revenue is roughly $4.24 billion, up about 30% year over year, with net income around $421 million and earnings per share near $11.64. Fiscal Q3 2026, ended March 27, 2026, set a record at approximately $1.214 billion in revenue, up about 39% from a year earlier, and management guided fiscal Q4 to roughly $1.25 billion to $1.29 billion. Gross margin sits near 12%, normal for contract manufacturing and structurally below what component designers earn, so operating leverage rather than pricing power drives profit growth. The balance sheet carries about $945 million in cash and investments against roughly $4 million of debt, and the shares have risen about 69% over the past year to a market capitalization near $20.2 billion.
What's driving Fabrinet (FN)?
1. Data center interconnect and telecom acceleration
Telecom revenue grew about 55% year over year in fiscal Q3 2026, and data center interconnect grew roughly 90%, up about 38% sequentially. Coherent optics moving from 400ZR into 800ZR is pulling volume through Fabrinet's lines as carriers and hyperscalers link facilities across metro and long-haul distances. Of all Fabrinet's lines, this one converts AI cluster spending into shipped hardware most directly.
2. Capacity is the constraint being removed
Management pegged the existing footprint at roughly $4.8 billion of annual revenue capacity and the post-expansion figure at approximately $8.5 billion. Building 10 phases in through January, Pinehurst is being converted, and a new Navanakorn site was acquired for about $11 million. Capital spending of roughly $64 million in the quarter pushed free cash flow slightly negative, a deliberate trade of near-term cash for volume headroom.
3. Two new 800G hyperscale programs
Fabrinet secured two separate 800G datacom transceiver programs with a hyperscale customer, with initial shipments underway and volume ramping through fiscal 2027. Both target scale-out networking. Winning work directly tied to a hyperscaler, rather than only through module vendors, shortens the distance between Fabrinet and the entity actually writing the capex checks.
4. A balance sheet that funds its own expansion
Cash and investments of roughly $945 million against about $4 million of total debt means the capacity buildout is self-funded, with no refinancing exposure and no dilution required. Return on invested capital near 30% suggests the prior rounds of capacity spending earned their cost. About $169 million remains authorized for buybacks, though management has prioritized capacity over repurchases.
What are the risks to Fabrinet (FN)?
Customer concentration is the structural weak point: a small set of customers each exceed 10% of revenue, and an insourcing decision or a design loss at one of them removes volume Fabrinet cannot easily replace. Gross margin near 12% leaves little cushion, so foreign exchange moves in the Thai baht and inefficiencies on new program ramps both showed up directly in the fiscal Q3 result, which slipped 30 basis points sequentially. Datacom revenue grew only about 4% year over year because component shortages in lasers, memory and ASICs held shipments below actual demand, a reminder that Fabrinet's output depends on parts it does not control. Manufacturing is heavily concentrated in Thailand, which concentrates tariff, trade-policy and single-country operating risk. At roughly 48 times trailing earnings and about 40 times EV/EBITDA for a business earning contract-manufacturing margins, the valuation assumes the AI optics cycle keeps running, and the 52-week range of roughly $272 to $749 shows how fast that assumption gets repriced.
What is the Fabrinet (FN) forecast?
9 analysts publish price targets on FN, averaging $732.44 against a $562.38 price as of August 2026, or +30.2%. The published targets run from $635.00 to $850.00, a narrow spread, and the ratings split 7 buy, 2 hold, 0 sell. Over the last six months there have been 4 raises and 2 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.
Read the full FN forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.
Is FN a buy or a sell?
We give no verdict on Fabrinet. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.
The case for buying. Data center interconnect and telecom acceleration. Telecom revenue grew about 55% year over year in fiscal Q3 2026, and data center interconnect grew roughly 90%, up about 38% sequentially. The most optimistic published target, $850.00, assumes this works close to its best case.
The case against. Customer concentration is the structural weak point: a small set of customers each exceed 10% of revenue, and an insourcing decision or a design loss at one of them removes volume Fabrinet cannot easily replace. The most pessimistic target, $635.00, is roughly what FN is worth if this bites instead.
Read the full bull and bear case on FN, including what would have to change to break either one. Walnut is not an investment adviser.
How is Fabrinet (FN) valued? (approximate, August 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Fabrinet's investor relations page or your broker.
- Revenue (TTM): ~$4.24 billion (up ~30% YoY)
- Fiscal Q3 2026 revenue: ~$1.214 billion (up ~39% YoY, a record)
- Net income (TTM): ~$421 million, EPS ~$11.64
- Market cap / P/E: ~$20.2 billion, ~48x trailing and ~34x forward
- Margins: gross ~12%, operating ~9.9%, ROIC ~30%
- Balance sheet / dividend: ~$945 million cash vs ~$4 million debt; no dividend
Fabrinet trades at a software-adjacent multiple on hardware-assembly economics, which only reconciles if volume keeps compounding at the current rate. Fiscal Q4 guidance of roughly $1.25 billion to $1.29 billion implies about 40% year-over-year growth at the midpoint, and results are due around August 17, 2026. The forward multiple near 34 times already prices a good deal of that in.
Who competes with Fabrinet (FN)?
Electronics manufacturing services rivals
Jabil, Sanmina, Benchmark Electronics, Celestica and Flex compete for the same outsourced production work. Most are larger and more diversified, but Fabrinet's advantage is depth in optical packaging and precision alignment, a niche the generalists have historically found hard to staff and qualify.
Vertically integrated optics vendors
Coherent, Lumentum and Applied Optoelectronics design modules and run meaningful in-house manufacturing. They are customers in some product lines and competitors in others, and every unit a vendor decides to build internally is a unit Fabrinet does not assemble.
Asian transceiver manufacturers
Innolight, Eoptolink, Accelink and HG Genuine supply hyperscalers directly at high volume with low cost structures. They compete for the same datacom transceiver dollars, and supply-chain diversification away from China is a large part of why Fabrinet's Thailand footprint gets qualified in the first place.
What stocks are similar to Fabrinet (FN)?
Other names that sit close to FN: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.
How to invest in Fabrinet (FN)
There are three common ways to get FN exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so FN sits alongside other stocks that express the same thesis.
Walnut takes the portfolio route. Describe a thesis where FN fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on Fabrinet (FN)
Fabrinet is a profitable, net-cash outsourced manufacturer whose revenue is compounding at roughly 30% on AI-driven optics demand, priced as though that pace continues.
More on Fabrinet (FN)
Whether FN is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is FN a buy or a sell?, and where the stock could go from here in the FN stock forecast.
For income investors, whether FN pays a dividend and how the payout looks is covered in does FN pay a dividend? And to weigh FN against a peer, read the full side-by-side comparisons: FN vs SANM and FN vs BHE.
Wondering how FN fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Fabrinet with AI
Connect the broker you already use and ask Walnut's AI how FN fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What does Fabrinet actually do?
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It manufactures optical and precision electro-mechanical products for the companies that design them. Transceivers, lasers, sensors and interconnect modules get packaged, assembled and tested in Fabrinet's plants and shipped under the customer's brand. The company sells manufacturing capability, not its own product designs.
Is Fabrinet an AI stock?
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Indirectly. AI clusters need enormous amounts of optical interconnect, and Fabrinet builds a large share of the modules that carry that traffic. Data center interconnect revenue grew roughly 90% year over year in fiscal Q3 2026. The exposure is real but arrives through networking vendors rather than through chip sales.
Why are Fabrinet's margins so low?
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Contract manufacturers earn a fee for assembly, not a design premium, so gross margin near 12% is normal for the model. Profit growth comes from volume and factory utilization instead of pricing. The upside is capital efficiency: return on invested capital runs near 30% despite the thin gross line.
Does Fabrinet pay a dividend?
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No. The company retains its cash and currently directs it toward capacity expansion, including Building 10 and the new Navanakorn site. About $169 million remains authorized for share repurchases, though buybacks were minimal in the most recent quarter.
How concentrated is Fabrinet's customer base?
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Highly. A small number of customers each account for more than 10% of revenue, with Nvidia and Cisco named among the largest in recent annual filings. Losing a major program, or having a customer bring production in-house, would remove volume that is difficult to replace quickly.
What happened with datacom revenue?
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Datacom grew only about 4% year over year in fiscal Q3 2026 and fell roughly 6% sequentially, but not for lack of orders. Component shortages in lasers, memory and ASICs kept shipments below demand. The constraint is upstream supply rather than customer interest.
Where is Fabrinet based and why does that matter?
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The company is incorporated in the Cayman Islands with manufacturing concentrated in Thailand, plus sites in the United States, Israel, China and the United Kingdom. Thailand gives it a low-cost base outside China, which appeals to customers diversifying supply chains, while also concentrating tariff and single-country operating risk.
How do people typically get exposure to FN?
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Directly through the NYSE listing, or through broad technology and semiconductor-equipment ETFs where Fabrinet appears as a component. Some investors pair it with optical component designers such as Coherent or Lumentum to hold the manufacturing layer and the design layer of the same supply chain rather than choosing between them.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Fabrinet's investor relations page or your broker before making investment decisions.