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 a series of 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 for Q1, 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 and representing a substantial 21.6% increase from 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."

Adding to the positive sentiment, multiple analysts have raised their price targets for Fabrinet. Needham maintained its Buy rating and increased its price target to $540 from $440, while JP Morgan raised its target to $530 from $430. The company also provided an upbeat outlook for the second quarter, projecting revenue between $1.05 billion and $1.10 billion, well above the analyst consensus of $986.78 million. This strong guidance, coupled with the impressive Q1 results and analyst upgrades, is fueling the stock's pre-market rally.