Shares of Fabrinet (FN) surged 8.35% in Tuesday's trading session following the company's impressive first-quarter fiscal 2026 financial results, upbeat guidance, and a series of analyst upgrades. The optical packaging and electronic manufacturing services provider demonstrated robust performance across multiple segments, driving investor optimism.
Fabrinet reported adjusted earnings per share of $2.92 for Q1, comfortably beating the consensus estimate of $2.82. Revenue for the quarter came in at $978.1 million, significantly surpassing analyst projections of $933.7 million and representing a substantial 21.6% increase from the same quarter last year. The company's CEO, Seamus Grady, attributed the record results to "another strong telecom performance, an early contribution from new High-Performance Computing revenue, and a smaller-than-anticipated sequential decline in datacom revenue."
Adding to the positive sentiment, multiple analysts raised their price targets for Fabrinet. Needham maintained its Buy rating and increased its price target to $540 from $440, while JP Morgan raised its target to $530 from $430. Rosenblatt Securities also upgraded its price target to $550 from $425. The company provided an upbeat outlook for the second quarter, projecting revenue between $1.05 billion and $1.10 billion, well above the analyst consensus of $986.78 million. This strong guidance, coupled with the impressive Q1 results and analyst upgrades, fueled the stock's rally as investors anticipate continued growth and strong performance from the company.
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