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Fabrinet drops after record Q4 revenue, heavy CapEx hits GAAP
Fabrinet said its Q4 FY2026 revenue rose more than 45% to over $1.3 billion, but heavy capital spending weighed on GAAP results as the stock fell 18.3% by late morning.
Fabrinet shares sold off sharply after the company posted record Q4 FY2026 results and issued what it characterized as strong guidance, with MarketBeat Ratings pointing to heavy capital expenditure as a key drag on GAAP earnings.
The outlet said revenue rose more than 45% to over $1.3 billion, a company record, and that the top line exceeded MarketBeat’s consensus by about $40 million, or roughly 310 basis points. It also noted margin strength across levels, even as CapEx cut into GAAP results.
MarketBeat Ratings added that the sell-off reflects investor concern around capital spending and system-wide capacity constraints in the AI supply chain. The outlet argued that Fabrinet’s role in advanced optical packaging ties it closely to AI infrastructure demand, with expectations that results could accelerate again once timing and capacity align.