Shares of Fabrinet (FN) are surging 6.60% in pre-market trading on Tuesday, following the company's impressive first-quarter fiscal 2026 financial results and subsequent analyst upgrades. The optical packaging and electronic manufacturing services provider demonstrated strong performance, particularly in its telecom sector, driving investor optimism.

Fabrinet reported adjusted earnings per share of $2.92, comfortably beating the consensus estimate of $2.82. Revenue for the quarter came in at $978.1 million, significantly surpassing analyst projections of $933.7 million. This robust top-line performance represents a substantial 21.6% increase from the $804.2 million reported in the same quarter last year. The company's CEO, Seamus Grady, attributed the record results to "another strong telecom performance, an early contribution from new High-Performance Computing revenue, and a smaller-than-anticipated sequential decline in datacom revenue."

Following the strong results, several analysts have upgraded their outlook on Fabrinet. Needham analyst Ryan Koontz maintained a Buy rating on the stock while raising the price target to $540 from $440. Similarly, JP Morgan increased its target price to $530 from $430. The positive analyst reactions, coupled with Fabrinet's upbeat guidance for the second quarter, are fueling the stock's pre-market rally as investors anticipate continued growth and strong performance from the company.