Income taxes |
3 Months Ended |
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Sep. 25, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income taxes | Income taxes As of September 25, 2026 and June 26, 2026, the liability for uncertain tax positions including accrued interest and penalties was $5.8 million and $5.1 million, respectively. The Company files income tax returns in the United States and foreign tax jurisdictions. The tax years from 2019 to 2025 remain open to examination by U.S. federal and state, and foreign tax authorities. The Company is currently under examination by the U.S. Internal Revenue Service (“IRS”) for fiscal year 2022. The Company’s income tax is recognized based on the best estimate of the expected annual effective tax rate for the full financial year of Fabrinet and each of its subsidiaries, adjusted for discrete items arising in that quarter. If the Company’s estimated annual effective tax rate changes, the Company makes a cumulative adjustment in that quarter. The effective tax rate for the Company for the three months ended September 25, 2026 and September 26, 2025 was 20.1% and 5.4%, respectively. The increase was primarily due to top-up taxes under the Pillar Two Model Rules.
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