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

Allegro MicroSystems (NASDAQ:ALGM) announced its earnings results on Thursday. The company reported $0.17 EPS for the quarter, topping 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 positive return on equity of 4.35% and a negative net margin of 1.57%.The company’s quarterly revenue was up 26.1% on a year-over-year basis. During the same quarter in the previous year, the business 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 Trading Down 6.7%

ALGM traded down $3.44 during trading hours on Thursday, reaching $47.93. 5,316,735 shares of the company’s stock traded hands, compared to its average volume of 2,105,628. The firm has a 50-day moving average price of $36.43 and a 200 day moving average price of $32.80. Allegro MicroSystems has a 52-week low of $19.75 and a 52-week high of $51.40. The company has a quick ratio of 2.39, a current ratio of 3.65 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $8.88 billion, a PE ratio of -599.13 and a beta of 2.02.

Institutional Investors Weigh In On Allegro MicroSystems

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Pacer Advisors Inc. raised its position in Allegro MicroSystems by 98.1% during the 4th quarter. Pacer Advisors Inc. now owns 32,313 shares of the company’s stock valued at $852,000 after purchasing an additional 16,003 shares in the last quarter. Invesco Ltd. raised its position in Allegro MicroSystems by 44.0% during the 4th quarter. Invesco Ltd. now owns 7,651,051 shares of the company’s stock valued at $201,835,000 after purchasing an additional 2,338,624 shares in the last quarter. Corient Private Wealth LLC raised its position in Allegro MicroSystems by 52.9% during the 4th quarter. Corient Private Wealth LLC now owns 15,345 shares of the company’s stock valued at $408,000 after purchasing an additional 5,311 shares in the last quarter. Mercer Global Advisors Inc. ADV raised its position in Allegro MicroSystems by 23.2% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 10,502 shares of the company’s stock valued at $277,000 after purchasing an additional 1,977 shares in the last quarter. Finally, Tudor Investment Corp ET AL raised its position in Allegro MicroSystems by 201.9% during the 4th quarter. Tudor Investment Corp ET AL now owns 25,665 shares of the company’s stock valued at $677,000 after purchasing an additional 17,165 shares in the last quarter. 56.45% of the stock is owned by institutional investors.

Allegro MicroSystems News Roundup

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

Analysts Set New Price Targets

ALGM has been the subject of a number of recent research reports. Needham & Company LLC lifted their target price on Allegro MicroSystems from $45.00 to $55.00 and gave the stock a “buy” rating in a report on Thursday. Bank of America boosted their price objective on Allegro MicroSystems from $36.00 to $39.00 and gave the company a “buy” rating in a report on Wednesday, January 21st. Morgan Stanley upgraded Allegro MicroSystems from an “equal weight” rating to an “overweight” rating and set a $51.00 price objective for the company in a report on Friday, February 13th. Barclays boosted their price objective on Allegro MicroSystems from $35.00 to $46.00 and gave the company an “overweight” rating in a report on Friday, January 30th. Finally, Jefferies Financial Group restated a “buy” rating and set a $62.00 price objective on shares of Allegro MicroSystems in a report on Thursday. Ten research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price 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.