Fabrinet

Q3 fiscal 2026 results beat guidance (good + surprising): Revenue $1.214B, above guidance, up 39% YoY and 7% QoQ; record non-GAAP EPS $3.72 exceeded the guided range. Non-GAAP financials were emphasized; GAAP tax rate 6.7% for the quarter.

Datacom supply constraints are the main near-term headwind (bad): Datacom grew 4% YoY but fell 6% vs Q2 due to broadened supply/material shortages. Management stressed the key issue is supply—not demand: demand exceeded what they could ship. They expect the imbalance to persist into Q4, with supply volatility across multiple commodities (e.g., lasers, memory, certain ASICs).

Telecom/Optical Communications momentum remains strong (good): Optical Communications revenue $889M, up 35% YoY and 7% QoQ. Telecom was record $628M; DCI $197M, up 90% YoY and 38% QoQ. Management believes longer-term DCI growth trends remain intact, and expects continued strength despite constraints.