Allegro MicroSystems (NASDAQ:ALGM) Issues Earnings Results

Allegro MicroSystems (NASDAQ:ALGM) released its earnings results on Thursday. The company reported $0.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.01, FiscalAI reports. The company had revenue of $243.19 million for the quarter, compared to analyst estimates of $235.94 million. Allegro MicroSystems had a negative net margin of 1.57% and a positive return on equity of 4.35%. The firm’s quarterly revenue was up 26.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.06 EPS. 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

Allegro MicroSystems stock traded down $3.44 during mid-day trading on Thursday, reaching $47.93. The company’s stock had a trading volume of 5,316,735 shares, compared to its average volume of 2,105,628. The firm has a market cap of $8.88 billion, a price-to-earnings ratio of -599.13 and a beta of 2.02. The business has a 50 day moving average price of $36.43 and a 200-day moving average price of $32.80. The company has a current ratio of 3.65, a quick ratio of 2.39 and a debt-to-equity ratio of 0.30. 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 hedge funds have recently added to or reduced their stakes in ALGM. Royal Bank of Canada lifted its stake in Allegro MicroSystems by 70.0% in the first quarter. Royal Bank of Canada now owns 117,923 shares of the company’s stock valued at $2,964,000 after buying an additional 48,554 shares during the last quarter. AQR Capital Management LLC bought a new stake in Allegro MicroSystems in the first quarter valued at $325,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Allegro MicroSystems by 31.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 354,610 shares of the company’s stock valued at $8,911,000 after buying an additional 85,607 shares during the last quarter. Prudential Financial Inc. lifted its stake in Allegro MicroSystems by 24.0% in the second quarter. Prudential Financial Inc. now owns 15,684 shares of the company’s stock valued at $536,000 after buying an additional 3,040 shares during the last quarter. Finally, First Trust Advisors LP lifted its stake in Allegro MicroSystems by 5.4% in the second quarter. First Trust Advisors LP now owns 576,478 shares of the company’s stock valued at $19,710,000 after buying an additional 29,531 shares during the last quarter. Institutional investors and hedge funds own 56.45% of the company’s stock.

Analyst Ratings Changes

Several research analysts have recently weighed in on ALGM shares. Wall Street Zen upgraded shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a report on Sunday, January 18th. Jefferies Financial Group restated a “buy” rating and issued a $62.00 price target on shares of Allegro MicroSystems in a report on Thursday. UBS Group raised their price target on shares of Allegro MicroSystems from $40.00 to $44.00 and gave the company a “buy” rating in a report on Friday, January 30th. Morgan Stanley upgraded shares of Allegro MicroSystems from an “equal weight” rating to an “overweight” rating and set a $51.00 price target on the stock in a report on Friday, February 13th. Finally, Needham & Company LLC raised their price target on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the company a “buy” rating in a report on Thursday. Ten equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $47.70.

Allegro MicroSystems News Summary

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

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.