- Fabrinet delivered a record QQ2 2025 quarter with revenue of $834 million, up 17% year over year and 4% sequentially, and non-GAAP EPS of $2.61. The quarter demonstrated durable mix resilience across Optical Communications (notably telecom and 400ZR/DCI) and Non-Optical segments (automotive and industrial lasers). Management signaled confidence in continued momentum into Q3 and beyond, supported by strong demand signals and capacity expansion plans.
- The company announced a sweeping capacity upgrade via Building 10 (2 million additional square feet at the Chonburi campus), reflecting a long-term stance on scalable manufacturing for data-centric products. Share repurchase activity remained meaningful, with one-third of the $200 million authorization repurchased in Q2 and an additional $100 million approved by the Board for buybacks.
- Near-term dynamics feature: (1) a modest QoQ softness in datacom as next-generation products ramp; (2) solid telecom strength driven by DCI and system wins; (3) a 1.6T ramp that is expected to materialize later in calendar year; (4) FX headwinds pressuring gross margin, offset by operating leverage. The guidance implies continued record revenue trajectory in Q3, underpinned by telecom strength and automotive/laser growth, with datacom ramp timing remaining a key variable for the second half of FY2025.