Allegro MicroSystems (NASDAQ:ALGM) Posts Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Allegro reported Q4 EPS of $0.17, beating the consensus by $0.01, with revenue of $243.2M (up 26% YoY) and FY2026 sales of $890M (+23% YoY).
• End‑market momentum is broadening — data center sales jumped ~41% sequentially and now represent ~14% of sales (FY data center revenue ~4x prior year), while automotive (xEV & ADAS) grew ~30% with a multi‑year high backlog and rising design wins.
• Management guided Q1 FY2027 to EPS of $0.190–$0.230 and revenue of $245–$255M with gross margin of 50–51% (below the long‑term >55% target), even as free cash flow hit a record $125M and net debt improved to $116M.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.17 earnings per share for the quarter, beating analysts' consensus estimates of $0.16 by $0.01, FiscalAI reports. The firm had revenue of $243.19 million during the quarter, compared to analysts' expectations of $235.94 million. Allegro MicroSystems had a negative net margin of 1.57% and a positive return on equity of 4.35%. The business's quarterly revenue was up 26.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.06 earnings per share. Allegro MicroSystems updated its Q1 2027 guidance to 0.190-0.230 EPS.

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

• Allegro delivered strong FY2026 results with $890M in sales (+23% YoY), Q4 sales of $243M (5th consecutive quarter of growth) and FY EPS of $0.54, while Q4 gross margin was ~50% and operating margin 15.6%.
• Data center is a major growth driver — Q4 data center sales rose ~41% sequentially to 14% of sales and FY data center revenue more than quadrupled to ~10% of total sales, driven by fan drivers and a ramping current-sensor opportunity that management expects to scale as AI rack power increases.
• Automotive momentum remains strong for focused auto (xEV & ADAS), which grew ~30% in FY2026; design wins increased >30% YoY and company backlog is at a multi‑year high, supporting share and dollar-content gains above industry production growth.
• Q1 FY2027 guidance calls for sales of $245–$255M and gross margin of 50–51% (below the long‑term >55% target); management expects the margin bridge to come from operating leverage, gold‑to‑copper conversions, factory efficiencies and selective price actions, but timing remains uncertain.
• Balance sheet and cash flow strengthened — record FY free cash flow of $125M, $60M of voluntary debt paydowns, ending cash of $175M and net debt of $116M, improving financial flexibility.

Allegro MicroSystems Stock Performance

ALGM traded down $3.44 during trading on Thursday, hitting $47.93. The stock had a trading volume of 5,316,735 shares, compared to its average volume of 2,105,628. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.39 and a current ratio of 3.65. The firm has a market capitalization of $8.88 billion, a P/E ratio of -599.13 and a beta of 2.02. The company's 50-day moving average price is $36.43 and its 200 day moving average price is $32.80. Allegro MicroSystems has a twelve month low of $19.75 and a twelve month high of $51.40.

Hedge Funds Weigh In On Allegro MicroSystems

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Personalized Indexing Management LLC grew its stake in shares of Allegro MicroSystems by 3.0% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 14,268 shares of the company's stock worth $376,000 after purchasing an additional 419 shares during the period. Caitong International Asset Management Co. Ltd grew its stake in Allegro MicroSystems by 85.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company's stock valued at $38,000 after acquiring an additional 669 shares during the last quarter. Bank of Montreal Can grew its stake in Allegro MicroSystems by 5.8% in the 4th quarter. Bank of Montreal Can now owns 14,075 shares of the company's stock valued at $371,000 after acquiring an additional 770 shares during the last quarter. Alps Advisors Inc. grew its stake in Allegro MicroSystems by 2.8% in the 4th quarter. Alps Advisors Inc. now owns 29,789 shares of the company's stock valued at $786,000 after acquiring an additional 806 shares during the last quarter. Finally, Advisors Asset Management Inc. grew its stake in Allegro MicroSystems by 5.5% in the 4th quarter. Advisors Asset Management Inc. now owns 23,744 shares of the company's stock valued at $626,000 after acquiring an additional 1,245 shares during the last quarter. 56.45% of the stock is owned by institutional investors and hedge funds.

More Allegro MicroSystems News

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

• Positive Sentiment: Q4 results beat expectations — Allegro reported $0.17 EPS vs. a $0.16 consensus and revenue of $243.19M (up 26% YoY), showing healthy top-line growth that beat estimates. ALGM Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Analyst upgrade and higher target — Needham raised its price target to $55 and reiterated a Buy, signaling further upside from some sell‑side desks. Benzinga
• Positive Sentiment: Street sentiment remains constructive — consensus analyst coverage shows a “Moderate Buy” view, supporting demand from growth‑oriented investors. Analyst Consensus "Moderate Buy"
• Neutral Sentiment: Guidance largely in-line — Q1 FY27 EPS guide of $0.190–0.230 and revenue guidance of $245M–$255M roughly match consensus, limiting surprise upside from the outlook. Press Release / Guidance
• Neutral Sentiment: Company provided full earnings materials — press release, slide deck and conference call are available for investors to dig into channel dynamics and automotive exposure. Conference Materials
• Neutral Sentiment: Market context: recent semiconductor rally and valuation re-checks may explain volatility — some investors could be taking profits after strong sector performance. Valuation Check / Sector Rally
• Negative Sentiment: Profitability concerns remain — Allegro still reported a negative net margin (~-1.6%) despite EPS beat, which may temper valuation expansion until margins sustainably improve. Earnings Details / Margins

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Wells Fargo & Company boosted their price objective on shares of Allegro MicroSystems from $45.00 to $48.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 11th. Barclays boosted their price objective on shares of Allegro MicroSystems from $35.00 to $46.00 and gave the stock an "overweight" rating in a research report on Friday, January 30th. Needham & Company LLC boosted their price objective on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the stock a "buy" rating in a research report on Thursday. Morgan Stanley upgraded shares of Allegro MicroSystems from an "equal weight" rating to an "overweight" rating and set a $51.00 price objective for the company in a research report on Friday, February 13th. Finally, Wall Street Zen upgraded shares of Allegro MicroSystems from a "hold" rating to a "buy" rating in a research report on Sunday, January 18th. Ten analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $47.70.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc NASDAQ: ALGM is a leading designer and manufacturer of high-performance power and sensing integrated circuits. The company focuses on semiconductor solutions that enable precise motion control, energy-efficient power management and robust sensing in a wide range of applications. Allegro's product portfolio includes Hall-effect magnetic sensors, current and position sensing ICs, motor driver and controller devices, and power management components.

Allegro MicroSystems serves major automotive, industrial and consumer markets worldwide.

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