Fifth Consecutive Quarter of Growth Highlights Allegro’s Momentum
Allegro MicroSystems is showing clear momentum, reporting its fifth straight quarter of year-over-year sales growth and delivering strong gains across key business lines. For the quarter ended March 27, 2026, Allegro’s total net sales rose by 26% versus the prior year, reaching $243 million. The full fiscal year saw sales jump 23% to $890 million, driven by robust demand in automotive—particularly in electric vehicles (xEV) and advanced driver-assistance systems (ADAS)—and a record contribution from the data center segment, which accounted for 14% of total fourth-quarter sales.
Non-GAAP EPS Surges and Margins Expand, Backed by Market Leadership
Strength in these segments translated into significant earnings improvement. Non-GAAP diluted earnings per share nearly tripled year-over-year for the quarter to $0.17, while full-year non-GAAP EPS more than doubled to $0.54. Non-GAAP operating margins also expanded sharply to 15.6% in the fourth quarter, up from 9.0% a year prior, underscoring ongoing leverage in the business model as scale increases.
| Metric | Q4 FY26 | Q4 FY25 | % Change YoY | FY26 | FY25 | % Change YoY |
|---|---|---|---|---|---|---|
| Total Net Sales ($M) | 243.19 | 192.82 | 26% | 890.10 | 725.01 | 23% |
| Automotive Sales ($M) | 163.91 | 139.49 | 18% | 628.56 | 535.21 | 17% |
| Industrial & Other Sales ($M) | 79.28 | 53.33 | 49% | 261.54 | 189.80 | 38% |
| Non-GAAP Diluted EPS | 0.17 | 0.06 | 183% | 0.54 | 0.24 | 125% |
| Non-GAAP Operating Margin (%) | 15.6 | 9.0 | +6.6 pts | 14.1 | 9.5 | +4.6 pts |
Automotive and Data Center: Twin Engines of Growth
Allegro’s results point to accelerated adoption in sectors central to its strategy. Automotive sales accounted for $163.9 million in the fourth quarter, up 18% year-over-year—fueled by ongoing electrification and demand for advanced safety technologies. Meanwhile, the industrial and other category jumped nearly 50%, led by growth in automation and energy-efficient applications. Notably, the data center business set a new record, boosting recurring revenue and diversifying Allegro’s customer base.
Cash Flow and Balance Sheet Remain Strong
Operating cash flow for the full fiscal year 2026 reached $163.07 million, with non-GAAP free cash flow at $124.89 million, representing 14% of net sales. The company closed the year with $168.75 million in cash and cash equivalents and maintained a manageable debt profile, giving Allegro continued flexibility to invest in innovation and strategic growth initiatives.
Outlook: Momentum Set to Continue Into Fiscal 2027
Management projects first-quarter sales for fiscal 2027 in the range of $245 million to $255 million—a midpoint that implies another 23% year-over-year increase. Non-GAAP gross margins are expected to remain solid, between 50% and 51%, with non-GAAP diluted EPS guided between $0.19 and $0.23. This sets the stage for Allegro to continue delivering above-market growth rates as demand in automotive and data center applications shows no signs of cooling.
Key Takeaways for Investors
Allegro’s results reflect more than near-term cyclical growth: the company is building on fundamental trends in electrification, automation, and cloud data infrastructure. Earnings leverage, rising margins, and healthy cash generation position the company for sustained expansion. Investors may want to track Allegro’s progress in automotive and data center segments, as these end-markets represent long-term demand drivers well-aligned with the company’s technical strengths and expanding global footprint.
Allegro MicroSystems will host a webcast and Q&A with management, available on its investor relations site. With a fifth quarter of outperformance and a strong forward outlook, Allegro’s trajectory suggests this could remain a company to watch as next-gen automotive and cloud markets evolve.
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