--- title: "Fabrinet Posts Record Q3, But Don't Thank Nvidia: Analyst" type: "News" locale: "en" url: "https://longbridge.com/en/news/285242374.md" description: "Fabrinet (NYSE:FN) reported a record Q3 with revenues up 39% to $1.21 billion, driven by Telecom sales. Despite beating earnings estimates, the stock fell 5.88% as analysts noted concerns over Datacom sales and gross margin misses. Rosenblatt Securities maintained a Buy rating, raising the price target to $750, while Needham reaffirmed a Buy with a target of $800. Management guided for Q4 revenues of $1.25-$1.29 billion, indicating strong growth ahead." datetime: "2026-05-05T16:58:49.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285242374.md) - [en](https://longbridge.com/en/news/285242374.md) - [zh-HK](https://longbridge.com/zh-HK/news/285242374.md) --- # Fabrinet Posts Record Q3, But Don't Thank Nvidia: Analyst Shares of **Fabrinet (NYSE:FN)** tanked in early trading on Tuesday, even after the company reported upbeat fiscal third-quarter results. Here are the key analyst insights: - Rosenblatt Securities analyst Mike Genovese maintained a Buy rating, while raising the price target from $715 to $750. - Needham analyst Ryan Koontz reaffirmed a Buy rating and price target of $800. **Check out other analyst stock ratings**. **Rosenblatt Securities:** Fabrinet's revenues grew 39% year-on-year to $1.21 billion. Earnings grew 47.4% to a record high of $3.72 per share. It beat the consensus estimate of $3.56 by 4.49%, according to Benzinga Pro data.  Revenues were driven by Telecom sales, which grew 55% year-on-year to $628 million, he added. **NVIDIA Corp** (NASDAQ:NVDA), or the Datacom segment, revenue contracted by 6% sequentially and grew by only 4% year-on-year to $260 million. Gross margins contracting by 30 basis points (bps) quarter-on-quarter, Genovese said. "We are upbeat on FN’s Datacom sales even though we do not view NVIDIA as a growth driver," he added **Needham:** While Fabrinet's revenue of $1.21 billion came in higher than consensus of $1.19 billion, non-GAAP gross margins of 12.1% missed expectations due to currency headwinds, Koontz said. Telecom revenues, which contribute more than 50% of the company's total revenues, grew 55% year-on-year and 13% sequentially to $628 million, driven by DCI's growth accelerating to 90%, he added. Management guided to revenues of $1.25-$1.29 billion for the fourth quarter of fiscal 2026, representing 40% year-on-year growth and coming above consensus of $1.26 billion at the midpoint, while earnings guidance of $3.72 $3.87 per share was in-line with expectations, the analyst stated. Management noted several new design wins for Datacom, "with most ramping over C26 and into C27," he further wrote. **FN Price Action:** Shares of Fabrinet had declined by 5.88% to $675.97 at the time of publication on Tuesday. _Image: Shutterstock_ ### Related Stocks - [FN.US](https://longbridge.com/en/quote/FN.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Fabrinet (FN) Is Up 16.2% After Q3 Beat And Cautious Q4 Outlook - What's Changed](https://longbridge.com/en/news/286651981.md) - [Eco Wave Power U.S. Joins NVIDIA Inception Program to Advance AI-Driven Renewable Energy Infrastructure | WAVE Stock News](https://longbridge.com/en/news/286771032.md) - [Here's why Astera Labs' stock just staged a big gain](https://longbridge.com/en/news/286969770.md) - [Tower Semiconductor Analysts Boost Their Forecasts Following Better-Than-Expected Q1 Earnings](https://longbridge.com/en/news/286435168.md) - [2,101 Shares in Fabrinet $FN Acquired by JSF Financial LLC](https://longbridge.com/en/news/285837023.md)