New York, Jan 5, 2026, 14:29 EST — Regular session
Fabrinet (NYSE:FN) shares fell about 6.7% on Monday, bucking a rise in the broader market. The stock was down $32.06 at $447.36 by 2:29 p.m. EST, after swinging between $490.18 and $440.00. The S&P 500 and Nasdaq were up about 0.7% and 0.8%, respectively.
The move matters because Fabrinet sits deep in the hardware supply chain, providing optical packaging — the assembly and testing of optical components — and other precision manufacturing services for complex products. That leaves the stock sensitive to shifts in demand from equipment makers serving telecom networks, data links and industrial markets, LSEG data on Reuters showed. 1
Investors are also positioning ahead of Fabrinet’s next quarterly update for the period that ended Dec. 26, after management laid out an aggressive target for the December quarter. Fabrinet said in a Nov. 3 release it expected second-quarter revenue of $1.05 billion to $1.10 billion, after first-quarter revenue hit a record $978.1 million and non-GAAP earnings per share — which exclude certain items — came in at $2.92. 2
The slide was broad across electronics manufacturing services, or EMS — contract makers that build products for other companies. Jabil fell 6.9%, Celestica lost 5.0% and Flex dropped 3.5%.
Jabil said it completed a cash acquisition of Hanley Energy Group for about $725 million, plus up to $58 million of contingent payments tied to revenue thresholds. The deal adds power-management and energy-optimization capabilities that Jabil said will help expand rack-level data center infrastructure offerings. 3
Macro data also sharpened investor focus on capital spending. The Institute for Supply Management said its manufacturing purchasing managers index (PMI) slipped to 47.9 in December; a reading below 50 signals contraction. “We remain cautious on the extent of recovery in traditional cap-ex categories this year,” Wells Fargo economist Shannon Grein said, referring to capex, or capital expenditures.
But Fabrinet’s next report will do most of the talking for the stock. Any sign that demand is cooling, or that costs are squeezing margins, would challenge a name investors have priced for continued growth.
