Fabrinet delivered a robust start to FY2025 (QQ1 2025), with record quarterly revenue of $804.2 million, marking a year-over-year increase of 17.3% and a sequential rise of 6.8%. The company reported solid profitability with GAAP operating margin of 9.57% and non-GAAP EPS of $2.39, supported by a first-quarter net income of $77.4 million. Despite a Thai baht FX headwind contributing roughly $0.19 per share of pressure on reported results, Fabrinet managed to sustain strong operating leverage, ending the quarter with a healthy balance sheet and ample liquidity. Management highlighted continued momentum across Optical Communications (notably Datacom), Telecom, and non-optical segments (auto/industrial lasers), as well as meaningful capex plans to expand capacity (Building 10) that would increase total footprint by over 50% and support multi-year growth. The guidance for Q2/FY2025 calls for revenue of $800–$820 million and EPS of $2.44–$2.52, signaling confidence in continued momentum even as FX headwinds persist. Management underscored the Nvidia-designed Datacom program as a core growth engine, the potential ramp of 1.6 Tbps transceivers tied to Blackwell, and select automotive/DCI share gains as tailwinds. In sum, Fabrinet’s QQ1 results reinforce a constructive long-term view anchored by high-value optical interconnects, capacity expansion, and select growth drivers in Datacom, ZR-enabled Telecom, 400ZR, and EV-charging ecosystems. Investors should monitor 1.6 ramp timing, currency dynamics (Thai baht), and the pace of auto/DCI strength as key near-term catalysts.