Fabrinet Q3 2026 earnings growth

What happened: Fabrinet, a leading optical networking company, reported strong Q3 FY2026 results, with revenue growth accelerating to 39% year-over-year. This was driven by a 55% surge in telecom revenue and a 52% increase in non-Optical Communications revenue, primarily due to robust demand for high-performance compute and AI-driven infrastructure. Following these results, Rosenblatt raised its price target on Fabrinet (NYSE:FN) to $750 from $715.

Market impact: The data center sector is positively affected, with Fabrinet's stock rising on expectations of increased data center spending. The company's strategic investment in co-packaged optics in Taiwan positions it well to capitalize on the growing demand for high-speed, low-latency connectivity.

What to watch next: Fabrinet's upcoming Q4 FY2026 earnings call (scheduled for August 12, 2026) will provide further insights into its growth trajectory. Additionally, investors should monitor developments around the company's co-packaged optics strategy, as successful execution could drive further growth and valuation upside.