Fabrinet (FN) shares plummeted 10.98% in after-hours trading on Monday, a sharp decline that occurred shortly after the company reported its financial results for the third quarter of fiscal year 2026.

The optical manufacturing firm reported GAAP earnings per share of $3.45 for the quarter ended March 31, which missed the analyst consensus estimate of $3.56. Revenue, however, rose 39.3% year-over-year to $1.21 billion, surpassing expectations of $1.18 billion.

Despite the revenue beat and an adjusted EPS figure that also exceeded estimates, the market reaction was strongly negative. The sell-off suggests investor disappointment with the GAAP earnings shortfall and potentially cautious sentiment towards the company's fourth-quarter revenue guidance of $1.25 billion to $1.29 billion, which was largely in line with analyst forecasts. The decline also follows a significant pre-earnings rally, with the stock having gained 35.5% in the quarter, likely prompting some profit-taking.