Earnings Surprise Leads to 10% Plunge… $2 Billion Vanished in a Day for Optical Communication Stocks

On April 3, Fabrinet (FN), a U.S.-based contract manufacturer of optical telecommunications equipment, closed on the New York Stock Exchange at $448.53, down 10.08% from the prior session. Trading volume was roughly 1.18 million shares, and market capitalization fell to about $16 billion—erasing nearly $1.5 billion (approximately ₩2 trillion) in a single day.

In its fiscal 2026 second-quarter results, released after the previous day’s market close, Fabrinet reported revenue of $1.13 billion and adjusted earnings per share of $3.36, surpassing analysts’ estimates of about $1.08 billion in revenue and $3.26 in EPS. The company also issued robust third-quarter guidance, forecasting revenue between $1.15 billion and $1.20 billion and EPS of $3.45 to $3.60. Nonetheless, even after Rosenblatt Securities reaffirmed a Buy rating and a $550 price target, short-term profit-taking following recent gains appeared to drive the stock’s sharp pullback.

Headquartered in the Cayman Islands, Fabrinet is an electronic and optical components contract manufacturer with production facilities in Thailand, China, Israel and the United States. It specializes in optical telecommunications modules for data centers and communications networks, holds a leading share of the global outsourced optical communications manufacturing market, and has grown around major customers such as Ciena and Amazon.