Fabrinet's stock experienced a significant after-hours plunge of 11.87% following the release of its second quarter fiscal year 2026 financial results. The sharp decline occurred shortly after the company reported earnings that exceeded analyst expectations, indicating potential market disappointment with forward guidance or other factors.

The optical manufacturing services provider reported Q2 revenue of $1.1329 billion, surpassing the IBES estimate of $1.077 billion. Adjusted earnings per share came in at $3.36, beating the $3.25 consensus estimate, while adjusted net income reached $121.6 million compared to the expected $117.6 million. Despite these strong results, investors reacted negatively in post-market trading.

Fabrinet's management expressed confidence in business drivers extending into the third quarter, issuing guidance for Q3 revenue in the range of $1.15 billion to $1.20 billion and adjusted net income per diluted share between $3.45 and $3.60. The after-hours selloff suggests the market may have anticipated even stronger performance or expressed concerns about future growth prospects despite the current quarter's beat.