Fabrinet Tumbles 11% Despite Blowout Q4 as Datacom Weakness Spooks Investors
FN sits 95% above its 52-week low of $272.49.
Summary
Fabrinet shares fell 11% to $531.48 in premarket trading Tuesday despite Q4 revenue of $1.316B (up 45% YoY) and EPS of $4.10, both above estimates. The selloff reflects concerns about the data-communications segment, which declined 1% sequentially to $258 million, and high-performance computing, which grew 11% sequentially to $118 million but still worried investors. Nvidia revenue fell 21% to $742 million in fiscal 2026. Analysts were mixed: B. Riley cut its target to $598 from $635, while Barclays raised to $739 and J.P. Morgan to $695. The stock had gained 31% YTD before this drop, so profit-taking and broad AI-infrastructure weakness amplified the move. Watch whether the datacom softness persists into fiscal Q1, where guidance of $1.375B-$1.425B revenue and $4.10-$4.25 EPS is above consensus.
At the time of this announcement, FN was trading at $532.00 on NYSE in the Technology sector, with a market capitalization of approximately $21.4B. The 52-week trading range was $272.49 to $748.89. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.