Fabrinet FY2026 10-K: Revenue Up 36% to $4.6B, But Pillar Two Tax Hits EPS

summarizeSummary

Fabrinet's FY2026 10-K confirms 36% revenue growth to $4.64B and $473M net income, but discloses a $57.4M Pillar Two tax charge that more than doubled the effective tax rate.

check_boxKey Events · Earnings and Guidance · FN

• FY2026 Revenue Up 35.7% to $4.64B

  Full-year revenue grew $1.22B to $4.64B, driven by data center (+40.8%) and communications infrastructure (+47.4%) demand. Net income rose 42% to $473.0M, with diluted EPS of $13.05.

• Pillar Two Tax Charge Hits Effective Rate

  A $57.4M current tax expense from enacted Pillar Two UTPR legislation drove the effective tax rate to 14.8% from 6.4% in FY2025. This is a recurring structural cost, not a one-time item.

• Raytek Investment Gains $56.7M

  The 13.8% stake in Raytek Semiconductor, acquired for $32.4M in March 2026, was remeasured to $89.1M after Raytek's shares began trading on the Taipei Exchange, producing a $56.7M unrealized gain.

• Capacity Expansion Continues

  Capital expenditures reached $298.9M in FY2026, up from $130.7M. A subsequent event discloses the $76.9M acquisition of a U.S. manufacturing facility completed July 27, 2026.

auto_awesomeAnalysis · FN · Manufacturing

Fabrinet's fiscal 2026 annual report confirms the blowout year previewed in yesterday's Q4 release — revenue grew 35.7% to $4.64 billion and net income reached $473 million. The new material detail is the tax line: a $57.4 million Pillar Two top-up tax charge pushed the effective rate from 6.4% to 14.8%, a structural change that will persist. The 10-K also reveals a $56.7 million unrealized gain on the Raytek investment and a $76.9 million U.S. facility acquisition completed in July, signaling continued capacity expansion.