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In the past six months, Fabrinet announced record financial results for fiscal year 2026, with revenue increasing 36% year-over-year to $4.64 billion and non-GAAP EPS reaching $14.09. Despite these strong results, the stock experienced a significant decline, falling nearly 30% in one week, attributed to investor concerns over negative free cash flow, increased working capital, heightened operational risks from customer and market concentration, and heavy capital spending for capacity expansion. Fabrinet has been aggressively expanding its manufacturing capacity, including Building 10 in Chonburi, to meet surging demand from AI-driven data center construction. A significant risk factor is the company's increasing dependence on a narrow customer base, with 57.4% of FY2026 revenue from just four customers: Cisco, NVIDIA, Nokia, and Amazon. As of October 2026, Zacks Research upgraded Fabrinet to a 'strong-buy' rating, while other analysts maintained a 'Moderate Buy' consensus. An EVP also sold 2,500 shares of stock in September 2026.