Allegro MicroSystems (NASDAQ:ALGM) Announces Earnings Results

Posted by George Bondi on Oct 31st, 2026

Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) issued its earnings results on Thursday. The company reported $0.26 earnings per share for the quarter, topping analysts’ consensus estimates of $0.24 by $0.02, FiscalAI reports. The business had revenue of $276.88 million during the quarter, compared to analyst estimates of $270.86 million. Allegro MicroSystems had a return on equity of 10.34% and a net margin of 3.07%. Allegro MicroSystems’s revenue was up 29.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.13 EPS.

Here are the key takeaways from Allegro MicroSystems’ conference call:

Strong Q2 performance: Sales rose 29% year over year to $277 million, exceeding the high end of guidance, while non-GAAP EPS doubled to $0.26. Allegro reported its seventh consecutive quarter of sequential sales growth.
Demand indicators remain robust: Design wins increased nearly 40% year over year, bookings rose 45%, and backlog expanded across automotive and industrial markets. Management said these trends put the company ahead of its mid-teens long-term sales growth target.
Data center growth opportunity is expanding: Data center sales reached a record $46 million, up more than 150% year over year, with more than 10 new current-sensor wins for hyperscaler power systems. Management expects fiscal 2027 data center revenue to more than double, although some 800-volt programs were pushed out by one or two quarters.
Automotive and robotics momentum is strong: Automotive sales grew 11% year over year, with more than 75% of new automotive design wins in xEV and ADAS applications. Allegro also secured humanoid robotics wins, including a program requiring approximately 60 ICs per robot, and will begin sampling an integrated sensor and motor-driver chip for robotic hands in fiscal Q3.
Capacity and cost pressures remain: Back-end test capacity is beginning to tighten, prompting additional capacity investments in fiscal Q3 and Q4, while wafer supply remains adequate. Input costs, including wafer, energy, labor, and commodities, continue to rise, though pricing actions, manufacturing efficiencies, and operating leverage are expected to support gross-margin expansion toward the company’s greater-than-55% target.

Allegro MicroSystems Trading Down 7.6%

Shares of NASDAQ:ALGM opened at $30.53 on Friday. The stock’s 50-day simple moving average is $35.09 and its two-hundred day simple moving average is $40.66. The stock has a market capitalization of $5.69 billion, a price-to-earnings ratio of 203.55, a PEG ratio of 1.04 and a beta of 1.99. Allegro MicroSystems has a 52-week low of $22.41 and a 52-week high of $71.77. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.33 and a current ratio of 4.13.

Analysts Set New Price Targets

Several research firms have recently weighed in on ALGM. Royal Bank Of Canada started coverage on shares of Allegro MicroSystems in a report on Friday, October 2nd. They set an “outperform” rating and a $50.00 price objective for the company. Mizuho dropped their target price on shares of Allegro MicroSystems from $58.00 to $46.00 and set an “outperform” rating on the stock in a report on Friday. TD Cowen dropped their target price on shares of Allegro MicroSystems from $48.00 to $40.00 and set a “buy” rating on the stock in a report on Monday, October 19th. Weiss Ratings downgraded shares of Allegro MicroSystems from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, October 23rd. Finally, Morgan Stanley boosted their target price on shares of Allegro MicroSystems from $51.00 to $52.00 and gave the company an “overweight” rating in a research note on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $49.33.

Get Our Latest Report on Allegro MicroSystems

Insider Activity at Allegro MicroSystems

In other news, SVP Erin Hagen sold 2,285 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $44.39, for a total transaction of $101,431.15. Following the completion of the sale, the senior vice president owned 31,052 shares of the company’s stock, valued at $1,378,398.28. This represents a 6.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.50% of the stock is owned by insiders.

Allegro MicroSystems News Summary

Here are the key news stories impacting Allegro MicroSystems this week:

Positive Sentiment: Allegro reported second-quarter fiscal 2027 revenue of approximately $277 million, up 29% year over year and ahead of the roughly $271 million consensus estimate. Adjusted earnings were $0.26 per share, exceeding expectations, while GAAP EPS quadrupled and non-GAAP EPS doubled from the prior-year period. Allegro MicroSystems Reports Second Quarter 2027 Results
Positive Sentiment: Management highlighted record sales in industrial and other markets and data centers, along with improving inventory levels, stronger demand signals and ongoing design wins. These trends support the longer-term growth outlook, particularly in electrification, automation and data-center applications. ALGM Q3 Deep Dive
Neutral Sentiment: Analysts remain broadly constructive, but several firms reduced their targets after the results: Wells Fargo to $40 from $45, UBS to $48 from $50, Barclays to $45 from $48, Mizuho to $46 from $58 and Needham to $50 from $57. Ratings remained positive or neutral, indicating expectations were reset rather than fully reversed. Analysts Cut Their Forecasts on Allegro MicroSystems
Negative Sentiment: The stock’s decline reflects concerns that near-term demand may not be strong enough to justify prior valuation assumptions. Investors are also weighing capacity constraints, the pace of recovery across end markets and the possibility that the earnings beat will not translate into a materially higher outlook. Allegro MicroSystems Sinks Despite Earnings Beat

About Allegro MicroSystems

(Get Free Report)

Allegro MicroSystems, Inc is a semiconductor company that develops and manufactures magnetic sensing and power-management solutions. Its products are designed to help monitor motion, position, speed, current and temperature, as well as control power in electronic systems.

The company’s portfolio includes Hall-effect and other magnetic sensors, current sensors, motor drivers, regulators, LED drivers and related integrated circuits. These products are used in automotive applications such as advanced driver-assistance systems, vehicle electrification, powertrain systems, comfort features and safety systems, as well as in industrial and consumer equipment.

Founded in 1990 and headquartered in Manchester, New Hampshire, Allegro serves customers globally through its international operations and distribution network.