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Canada Pension Plan Investment Board acquired a new stake in Allegro MicroSystems, Inc. (NASDAQ:ALGM – Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The fund acquired 44,000 shares of the company’s stock, valued at approximately $3,063,000.

Several other institutional investors have also added to or reduced their stakes in ALGM. State of Wyoming bought a new stake in shares of Allegro MicroSystems in the second quarter valued at approximately $2,247,000. Nippon Life Global Investors Americas Inc. bought a new position in Allegro MicroSystems in the 2nd quarter worth approximately $10,016,000. Norges Bank bought a new position in Allegro MicroSystems in the 4th quarter worth approximately $38,457,000. Bank of America Corp DE boosted its holdings in Allegro MicroSystems by 48.3% in the 1st quarter. Bank of America Corp DE now owns 855,453 shares of the company’s stock worth $26,972,000 after buying an additional 278,798 shares during the period. Finally, Maverick Capital Ltd. purchased a new position in Allegro MicroSystems in the 1st quarter valued at approximately $1,331,000. 56.45% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets In related news, SVP Richard Madormo sold 5,000 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $52.72, for a total value of $263,600.00. Following the sale, the senior vice president owned 69,687 shares in the company, valued at approximately $3,673,898.64. This trade represents a 6.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Erin Hagen sold 2,285 shares of Allegro MicroSystems stock in a transaction on Monday, August 10th. The shares were sold at an average price of $44.39, for a total value of $101,431.15. Following the sale, the senior vice president directly 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 disclosure for this sale is available in the SEC filing. Company insiders own 0.50% of the company’s stock.

Allegro MicroSystems Stock Performance Allegro MicroSystems stock opened at $35.77 on Monday. The firm’s 50 day simple moving average is $47.71 and its 200 day simple moving average is $43.38. The company has a current ratio of 3.70, a quick ratio of 2.33 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $6.67 billion, a PE ratio of 596.27, a price-to-earnings-growth ratio of 1.13 and a beta of 1.94. Allegro MicroSystems, Inc. has a 1-year low of $22.41 and a 1-year high of $71.77. Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.23 EPS for the quarter, beating the consensus estimate of $0.21 by $0.02. Allegro MicroSystems had a net margin of 1.50% and a return on equity of 8.30%. The firm had revenue of $259.24 million during the quarter, compared to the consensus estimate of $251.44 million. During the same period last year, the firm earned $0.09 EPS. The business’s quarterly revenue was up 27.5% compared to the same quarter last year. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. As a group, analysts expect that Allegro MicroSystems, Inc. will post 0.65 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth Several equities research analysts have issued reports on the company. Jefferies Financial Group restated a “buy” rating and set a $62.00 target price on shares of Allegro MicroSystems in a research report on Thursday, May 7th. TD Cowen reduced their price target on Allegro MicroSystems from $66.00 to $48.00 and set a “buy” rating for the company in a research report on Friday, July 31st. Benchmark assumed coverage on Allegro MicroSystems in a research note on Wednesday, August 12th. They set a “buy” rating and a $60.00 price objective on the stock. Evercore reissued an “outperform” rating and set a $53.00 price objective on shares of Allegro MicroSystems in a report on Friday, May 8th. Finally, Barclays downgraded Allegro MicroSystems from an “overweight” rating to an “equal weight” rating and set a $48.00 target price for the company. in a research note on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Allegro MicroSystems presently has an average rating of “Moderate Buy” and a consensus target price of $53.45.

Read Our Latest Research Report on Allegro MicroSystems

(Free Report)

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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On August 20, 2026, Allegro Microsystems Inc
ALGM -3.02% 85

shares fell 3.0% to a current price of $37.19, continuing a downward trend that has seen the stock decline 15.7% over the past week and 19.8% over the past month. The stock's performance has been volatile, with a 52-week high of $71.77 and a low of $22.41.

GF Value™ verdict: Current price is $37.19 vs $30.42 GF Value™, indicating the stock is 22.3% overvalued.GF Score™ of 85/100 suggests a strong overall rating, reflecting positive aspects in various financial categories.Notable signal: Insiders have sold $5.5M worth of shares in the past 12 months with no insider buying activity.Is ALGM Overvalued or Undervalued?According to the GF Value™, Allegro Microsystems Inc is currently overvalued, with its share price at $37.19 compared to a fair value estimate of $30.42. This represents a margin of safety of 22.3%, which indicates that the stock is trading at a premium compared to its intrinsic value. The GF Valuation label classifies ALGM as "Modestly Overvalued," suggesting that while the company has strong fundamentals, its current market price may not accurately reflect its true value.

Investors may face risks associated with purchasing shares at this elevated price. An overvaluation can lead to price corrections if future growth does not meet market expectations. Conversely, if the company can exceed its growth forecasts, there may still be opportunities for appreciation, though caution is warranted given the current market sentiment.

How Does ALGM's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)619.8x42.4xForward P/E36.2xN/AAllegro's current P/E ratio of 619.8x is significantly above its 5-year median of 42.4x, marking a staggering 1364% increase. This analysis aligns with the GF Value™ assessment, reinforcing the view that ALGM's stock is overvalued at present. The forward P/E of 36.2x may indicate expectations for improved earnings, but it still suggests a premium compared to historical norms.

What Does ALGM's GF Score™ Tell Us?The GF Score™ is a composite score that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. Allegro Microsystems Inc boasts a GF Score™ of 85/100, indicating a strong position overall. The strongest sub-rank is its momentum rank at 10/10, suggesting positive market sentiment and performance trends. However, the valuation rank of 5/10 indicates that the stock may not be favorably priced relative to its performance and growth prospects.

MetricRatingGF Score™85/100Financial Strength7/10Profitability7/10Growth8/10Valuation5/10Momentum10/10Overall, the scores suggest that while Allegro has strong growth and momentum attributes, there are concerns regarding its current valuation. The solid financial strength and profitability scores indicate a stable foundation, but the valuation rank implies caution for potential investors at the current price.

What Are Gurus and Insiders Doing with ALGM?Currently, three gurus hold positions in Allegro Microsystems Inc, with two increasing their stakes and five trimming their holdings in recent quarters. This mixed activity among prominent investors suggests that while some see potential in the stock, others may be reevaluating their positions amidst the market fluctuations.

Insider activity has raised some flags as well, with insiders selling $5.5 million worth of shares over the past 12 months and no reported buying activity. This pattern typically indicates a lack of confidence from those closest to the company, which could be a signal of caution for potential investors.

What This Means for InvestorsIn summary, Allegro Microsystems Inc is currently assessed as overvalued according to the GF Value™, with a significant premium over its estimated fair value. While the company exhibits strong financial metrics and growth potential, the high P/E ratio and insider selling activity raise concerns regarding the sustainability of its current price level. For further insights, investors can explore the Allegro Microsystems Inc
ALGM -3.02% 85

stock page for the latest updates.

Frequently Asked QuestionsWhat is ALGM's GF Score™?

ALGM has a GF Score™ of 85/100, indicating a strong overall rating based on its financial health, profitability, growth prospects, and market momentum.

Is ALGM overvalued or undervalued?

According to the GF Value™, ALGM is overvalued, with a current price of $37.19 compared to a fair value estimate of $30.42.

What is ALGM's P/E ratio?

ALGM's P/E ratio is currently 619.8x, which is significantly higher than its 5-year median of 42.4x, indicating a substantial increase in valuation compared to historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways ALGM's Q1'27 earnings rose 155.6% as revenues increased 27.5% to $259 million.Record Data Center sales reached 17% of total sales, with current sensors up 66% sequentially.ALGM expects Q2 revenues of $265-$275 million, with both segments growing sequentially. Allegro MicroSystems, Inc. (ALGM - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 23 cents per share, up 155.6% year over year. The figure beat the Zacks Consensus Estimate by 9.52%.

Revenues increased 27.5% year over year to $259 million and surpassed the consensus mark by 2.47%. Growth was led by record Data Center sales, while bookings rose for the seventh consecutive quarter, and backlog expanded.

ALGM Gains From Data Center MomentumIndustrial and Other revenues climbed 59% year over year and 18% sequentially to $93.9 million. Data Center reached a quarterly record of 17% of total sales after growing 32% from the prior quarter.

Current sensors accounted for 22% of Data Center sales and increased 66% sequentially. Data Center product margins reached the mid-50s, supported by the richer current-sensor mix. Management expects fiscal 2027 Data Center sales to more than double from fiscal 2026 as demand expands across current sensors, intelligent fan drivers and isolated gate drivers.

Allegro's Auto Business Extends GrowthAutomotive revenues rose 15% year over year and 1% sequentially to $165.3 million. Focus Auto sales, which include xEV and advanced driver-assistance systems, increased 11% year over year and 3% sequentially.

Automotive bookings and design wins each jumped 30% from the prior-year period. Wins included electronic power steering programs in Korea, hybrid traction-inverter current sensors for a Japanese automaker and electromechanical braking applications in China.

ALGM Expands Margins on Operating LeverageNon-GAAP gross margin improved 290 basis points year over year and 110 basis points sequentially to 51.1%. The increase reflected operating leverage, favorable product mix and an early benefit from selective pricing actions.

Non-GAAP operating margin expanded 830 basis points year over year to 19.4%. Non-GAAP operating expenses were $82 million, down $2 million sequentially, mainly because annual incentive compensation plans reset at the start of the fiscal year.

Allegro Advances Robotics and Product WinsAllegro secured current-sensor wins with large Chinese humanoid robot manufacturers and an inductive position-sensor design win with a prominent North American humanoid robotics company. Management expects robotics and automation to contribute 3% to 4% of fiscal 2027 sales.

The company estimates addressable content of more than $150 per humanoid robot by 2030. It also introduced an ASIL-D power-management IC with an integrated wheel-speed sensor interface that can eliminate up to nine external components in brake-by-wire systems.

ALGM Posts Broad Product and Regional GrowthMagnetic sensor sales increased 16% year over year and 6% sequentially to $150 million. Power product sales advanced 47% from the prior-year quarter and 7% sequentially to $109 million.

On a ship-to basis, Rest of Asia generated 32% of quarterly sales, followed by China at 25% and Japan at 17%. The Americas and Europe each contributed 13%, highlighting the company's broad geographic revenue mix.

Allegro Strengthens Cash Flow and LiquidityCash flow from operations was $22 million in the quarter. Capital expenditures totaled $8 million, resulting in non-GAAP free cash flow of $14 million.

Allegro ended the quarter with $170 million in total cash, term debt of $285 million and net debt of $115 million. Days sales outstanding were 35, while inventory days were 128, both consistent with the prior quarter.

ALGM Issues Strong Second-Quarter ViewFor the second quarter of fiscal 2027, Allegro expects revenues between $265 million and $275 million. The midpoint implies 26% year-over-year growth, with both Automotive and Industrial projected to post mid-single-digit sequential growth.

The company forecasts non-GAAP gross margin between 50.75% and 51.75%. Non-GAAP operating expenses are projected at $84.5 million, plus or minus $1 million, while non-GAAP earnings are expected between 23 cents and 26 cents per share. The earnings midpoint implies 88% year-over-year growth.

ALGM’s Zacks Rank and Stocks to ConsiderAllegro currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices (ADI - Free Report) , Applied Materials (AMAT - Free Report) and Cisco Systems (CSCO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Analog Devices have rallied 35.2% year to date. The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating a 59.4% year-over-year increase.

Shares of Applied Materials have skyrocketed 95.2% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.14 per share, up by 3 cents over the past 30 days, calling for a rise of 28.9% year over year.

Cisco Systems shares have rallied 47.4% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.28 per share, unchanged over the past 30 days, implying an increase of 12.3% year over year.

Posted by Defense World Staff on Jul 31st, 2026

First Trust Advisors LP decreased its holdings in Allegro MicroSystems, Inc. (NASDAQ:ALGM – Free Report) by 7.6% during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 414,897 shares of the company’s stock after selling 34,083 shares during the quarter. First Trust Advisors LP owned 0.22% of Allegro MicroSystems worth $13,082,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in ALGM. Parallel Advisors LLC lifted its holdings in shares of Allegro MicroSystems by 42.8% in the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock valued at $32,000 after purchasing an additional 302 shares in the last quarter. Vanguard Personalized Indexing Management LLC grew its holdings in Allegro MicroSystems by 3.0% during the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 14,268 shares of the company’s stock worth $376,000 after buying an additional 419 shares in the last quarter. State of Michigan Retirement System grew its holdings in Allegro MicroSystems by 2.0% during the first quarter. State of Michigan Retirement System now owns 29,900 shares of the company’s stock worth $943,000 after buying an additional 600 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its position 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 buying an additional 669 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund raised its position in Allegro MicroSystems by 2.8% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 25,437 shares of the company’s stock valued at $802,000 after buying an additional 700 shares during the last quarter. Institutional investors and hedge funds own 56.45% of the company’s stock.

Analyst Upgrades and Downgrades Several equities analysts have weighed in on ALGM shares. Jefferies Financial Group restated a “buy” rating and set a $62.00 price objective on shares of Allegro MicroSystems in a research note on Thursday, May 7th. Mizuho upped their target price on shares of Allegro MicroSystems from $54.00 to $67.00 and gave the stock an “outperform” rating in a research note on Monday, June 29th. Barclays downgraded shares of Allegro MicroSystems from an “overweight” rating to an “equal weight” rating and set a $48.00 target price for the company. in a report on Monday, July 20th. Wells Fargo & Company raised their price target on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Allegro MicroSystems in a report on Wednesday, May 6th. Nine investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $55.40.

View Our Latest Analysis on ALGM

Allegro MicroSystems Trading Down 1.8% Shares of Allegro MicroSystems stock opened at $41.45 on Friday. Allegro MicroSystems, Inc. has a 1 year low of $22.41 and a 1 year high of $71.77. The firm has a market cap of $7.72 billion, a PE ratio of -460.50 and a beta of 1.90. The stock has a fifty day moving average price of $51.91 and a 200-day moving average price of $42.59. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.45 and a quick ratio of 2.21.

Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.21 by $0.02. The company had revenue of $259.24 million for the quarter, compared to the consensus estimate of $251.44 million. Allegro MicroSystems had a negative net margin of 1.67% and a positive return on equity of 6.09%. The firm’s quarterly revenue was up 27.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.09 EPS. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. Equities research analysts anticipate that Allegro MicroSystems, Inc. will post 0.77 EPS for the current year.

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

Positive Sentiment: Allegro reported fiscal Q1 2027 earnings of $0.23 per share, exceeding the $0.21 consensus estimate and rising from $0.09 a year earlier. Revenue increased 27.5% year over year to $259.24 million, also surpassing the $251.44 million analyst forecast. Allegro MicroSystems beats Q1 earnings and revenue estimates Positive Sentiment: Management issued fiscal Q2 2027 guidance for EPS of $0.23 to $0.26 and revenue of $265 million to $275 million. The revenue outlook is modestly above the $264.5 million consensus estimate, supporting expectations for continued growth. Allegro MicroSystems reports first quarter 2027 results Positive Sentiment: Needham raised its price target for ALGM from $55 to $57 and maintained a “buy” rating, indicating substantial potential upside based on its valuation assumptions. Needham raises Allegro MicroSystems price target Neutral Sentiment: Analyst commentary was mixed, causing the company’s fair-value assessment to edge higher but not producing a uniform bullish view. This may be limiting the stock’s reaction to the earnings beat. Allegro MicroSystems stock fair value edges higher after mixed analyst commentary Negative Sentiment: At roughly 136 times earnings, ALGM carries a demanding valuation. The company also reported a negative net margin, so investors may be focused on whether strong revenue growth can translate into sustained profitability. Insiders Place Their Bets In related news, Director Susan D. Lynch sold 16,711 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $45.46, for a total value of $759,682.06. Following the transaction, the director owned 12,805 shares in the company, valued at approximately $582,115.30. This represents a 56.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Roald Graham Webster sold 5,217 shares of the business’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $44.88, for a total value of $234,138.96. Following the completion of the sale, the chief accounting officer owned 13,106 shares in the company, valued at approximately $588,197.28. The trade was a 28.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 68,607 shares of company stock valued at $3,213,714. Company insiders own 0.50% of the company’s stock.

Allegro MicroSystems Profile (Free Report)

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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Allegro MicroSystems, Inc. (ALGM - Free Report) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +9.52%. A quarter ago, it was expected that this company would post earnings of $0.16 per share when it actually produced earnings of $0.17, delivering a surprise of +6.25%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Allegro MicroSystems, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $259.24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.47%. This compares to year-ago revenues of $203.4 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Allegro MicroSystems shares have added about 60% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Allegro MicroSystems?While Allegro MicroSystems has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Allegro MicroSystems was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.25 on $269.91 million in revenues for the coming quarter and $0.98 on $1.09 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Cirrus Logic (CRUS - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This chipmaker is expected to post quarterly earnings of $1.80 per share in its upcoming report, which represents a year-over-year change of +19.2%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level.

Cirrus Logic's revenues are expected to be $459.88 million, up 12.9% from the year-ago quarter.

MANCHESTER, N.H., July 30, 2026 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its first quarter ended June 26, 2026.

“We began fiscal 2027 with strong momentum, delivering our sixth consecutive quarter of sales growth. Fiscal first quarter sales were $259 million, representing a 27% increase year-over-year. GAAP earnings per share improved to $0.08 in fiscal first quarter 2027 from a $0.07 loss per share in fiscal first quarter 2026. Non-GAAP EPS grew for the fifth consecutive quarter to $0.23, increasing more than 2.5x over the first quarter of fiscal 2026. These results were led by data center, which reached a record 17% of total sales, and by continued strength in xEV and ADAS,” said Mike Doogue, President and CEO of Allegro MicroSystems. “Our market leading products and technology sit at the intersection of AI, electrification, and automation — the defining megatrends powering growth across our Auto and Industrial end markets. Increasing bookings and an expanding backlog strengthen our confidence in our strategy and growth potential.”

First Quarter Financial Highlights:

In thousands, except per share dataThree-Month Period Ended
  June 26, 2026
 March 27, 2026
 June 27, 2025
  (Unaudited)
 (Unaudited)
 (Unaudited)
 Net Sales         Automotive$165,349  $163,909  $144,264  Industrial and Other 93,894   79,278   59,141  Total net sales$259,243  $243,187  $203,405  GAAP Financial Measures            Gross margin % 48.5 %  47.0 %  44.9 % Operating margin % 9.8 %  2.2 %  (1.3)% Diluted EPS$0.08  $(0.09) $(0.07) Non-GAAP Financial Measures            Gross margin % 51.1 %  50.0 %  48.2 % Operating margin % 19.4 %  15.6 %  11.1 % Diluted EPS$0.23  $0.17  $0.09    Business Outlook

For the second quarter of fiscal year 2027 ending September 25, 2026, the Company expects total net sales to be in the range of
$265 million to $275 million. At the midpoint of this range, it implies growth in net sales of 26% year-over-year.

The Company also estimates the following results on a non-GAAP basis:

Gross Margin is expected to be between 50.75% and 51.75%,Operating expenses are expected to be $84.5 million, plus or minus $1 million, andDiluted Earnings per Share is expected to be between $0.23 and $0.26, with the mid-point of this range implying an 88% year-over-year increase.
Allegro has not provided a reconciliation of its second fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles (“GAAP”) measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.

Earnings Webcast

A webcast will be held on Thursday, July 30, 2026 at 8:30 a.m., Eastern Time. Michael C. Doogue, President and Chief Executive Officer, and Derek P. D’Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro’s business and financial results.

The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.

About Allegro MicroSystems

Allegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs to propel electrification, automation, AI data center, and robotics forward with solutions that enhance efficiency, performance and sustainability. Allegro’s commitment to quality drives transformation across industries, reinforcing our status as a pioneer in “automotive-grade” technology and a partner in our customers’ success. For additional information, please visit https://www.allegromicro.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors and trends affecting our business, including the projected size and growth of markets in which we operate or may operate, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.

Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 27, 2026, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to maintain or improve our gross margins may be adversely affected by decreases in average selling prices of our products, increases in input costs or shifts in product, customer or channel mix; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control, including conflicts in the Middle East, impacting us, our key suppliers or our manufacturing partners or other third-party suppliers of components, materials or subassemblies; our ability to develop new product features or new products in a timely and cost-effective manner; our dependence on growth in the end markets that use our products, and the impact that slowdowns in such growth, including as a result of volatility in demand for emerging technologies or changes in government incentives, could have on our financial results; the loss of one or more significant customers; our ability to identify, enter and expand in new markets, and to generate returns on such investments; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to retain key and highly skilled personnel; the impact on the market price of our common stock from future sales of our common stock by large stockholders, or the perception that such sales could occur; the impact of restructuring activities on our business and operating results; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; the risks presented by the use of artificial intelligence, machine learning and automated decision-making technologies by us and others; any failure to maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. 

You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.

This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their most directly comparable GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.

This press release may not be reproduced, forwarded to any person or published, in whole or in part.

ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)
  Three-Month Period Ended
  June 26, 2026
 June 27, 2025
 Net sales$259,243  $203,405  Cost of goods sold 133,633   112,103  Gross profit 125,610   91,302  Operating expenses:        Research and development 55,168   46,500  Selling, general and administrative 44,975   47,542  Total operating expenses 100,143   94,042  Operating income (loss) 25,467   (2,740) Interest and other expense (8,042)  (7,253) Income (loss) before income taxes 17,425   (9,993) Income tax provision 1,506   3,169  Net income (loss) 15,919   (13,162) Net income attributable to non-controlling interests 48   65  Net income (loss) attributable to Allegro MicroSystems, Inc.$15,871  $(13,227) Net income (loss) per common share attributable to Allegro MicroSystems, Inc.:        Basic$0.09  $(0.07) Diluted$0.08  $(0.07) Weighted average shares outstanding:        Basic 185,806,543   184,587,027  Diluted 187,770,061   184,587,027    Supplemental Schedule of Total Net Sales

The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations:

 Three-Month Period Ended
 Change
  June 26, 2026
 June 27, 2025
 Amount
 %
  (Dollars in thousands)
 Automotive$165,349 $144,264 $21,085 15% Industrial and Other 93,894  59,141  34,753 59% Total net sales$259,243 $203,405 $55,838 27%   ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)  June 26,
2026
(Unaudited)
 March 27,
2026
 Assets        Current assets:        Cash and cash equivalents$162,029  $168,753  Restricted cash 8,444   6,604  Trade accounts receivable, net 98,661   93,248  Inventories 188,064   181,752  Prepaid income taxes 714   1,179  Related party - other current assets 11,250   —  Prepaid expenses and other current assets 38,883   52,070    Total current assets 508,045   503,606  Property, plant and equipment, net 304,336   308,258  Deferred income tax assets 81,776   80,221  Goodwill 203,057   203,291  Intangible assets, net 232,855   238,675  Equity investment in related party 18,687   22,296  Related party - other assets 18,750   15,000  Other assets 44,456   44,828    Total assets$1,411,962  $1,416,175  Liabilities, Non-Controlling Interest and Stockholders’ Equity        Current liabilities:        Trade accounts payable$57,826  $44,438  Amounts due to related party 4,607   4,794  Accrued expenses and other current liabilities 73,276   95,163  Current portion of long-term debt 1,499   1,530    Total current liabilities 137,208   145,925  Long-term debt 285,660   285,746  Other long-term liabilities 23,132   28,059    Total liabilities 446,000   459,730  Commitments and contingencies        Stockholders’ Equity:        Preferred stock —   —  Common stock 1,863   1,854  Additional paid-in capital 1,046,867   1,050,582  Accumulated deficit (52,617)  (68,488) Accumulated other comprehensive loss (31,837)  (29,201)   Equity attributable to Allegro MicroSystems, Inc. 964,276   954,747  Non-controlling interest 1,686   1,698    Total stockholders’ equity 965,962   956,445    Total liabilities, non-controlling interest and stockholders’ equity$1,411,962  $1,416,175    ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
  Three-Month Period Ended
  June 26, 2026
 June 27, 2025
 Cash flows from operating activities:  Net income (loss)$15,919  $(13,162) Adjustments to reconcile net income (loss) to net cash provided by operating activities:        Depreciation and amortization 16,867   16,216  Amortization of deferred financing costs 297   933  Deferred income taxes (1,702)  (5,061) Stock-based compensation 14,128   10,762  Provisions for inventory and expected credit losses 1,555   3,450  Other non-cash reconciling items (14)  (58) Changes in operating assets and liabilities:        Trade accounts receivable (5,413)  (5,332) Inventories (7,870)  7,233  Payments to related party (15,000)  —  Prepaid expenses and other assets 15,515   35,965  Trade accounts payable 13,754   6,281  Due to and from related parties (188)  (3,633) Other changes in operating assets and liabilities, net (25,859)  8,024  Net cash provided by operating activities 21,989   61,618  Cash flows from investing activities:        Purchases of property, plant and equipment (8,017)  (10,600) Net cash used in investing activities (8,017)  (10,600) Cash flows from financing activities:        Repayment of term loan —   (35,000) Finance lease payments (237)  (202) Payments for taxes related to net share settlement of equity awards (17,757)  (8,988) Net cash used in financing activities (17,994)  (44,190) Effect of exchange rate changes on cash and cash equivalents and restricted cash (862)  1,444  Net (decrease) increase in cash and cash equivalents and restricted cash (4,884)  8,272  Cash and cash equivalents and restricted cash at beginning of period 175,357   131,107  Cash and cash equivalents and restricted cash at end of period$170,473  $139,379    Non-GAAP Financial Measures

In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision, non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as a percentage of net sales (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision (Benefit), management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision (Benefit) across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.

The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP financial measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related-party activities and other non-operational costs.

Non-GAAP Income Tax Provision

In calculating the non-GAAP Income Tax Provision, we adjust for the tax effect of adjustments to GAAP results which represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below. We also adjust for any discrete tax items and the impact of non-recurring tax law changes to ensure the non-GAAP Income Tax Rate (“NG ETR”) reflects future operations.

Our fiscal year 2026 and 2027 NG ETR excludes the impact of the 2025 One Big Beautiful Bill Act’s one-time research and development amortization election which accelerates the amortization of previously capitalized domestic research and development over a two-year period. The NG ETR is applied to non-GAAP Profit before Tax to arrive at the tax effect of adjustments to GAAP results.

Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin

 Three-Month Period Ended
  June 26, 2026
 March 27, 2026
 June 27, 2025
  (Dollars in thousands)
 GAAP Gross Profit$125,610  $114,275  $91,302  GAAP Gross Margin (% of net sales) 48.5%  47.0%  44.9%              Non-GAAP adjustments            Purchased intangible amortization 5,089   5,089   5,089  Restructuring costs 83   723   705  Stock-based compensation(1) 1,172   1,033   888  Other costs 428   442   —  Total Non-GAAP Adjustments$6,772  $7,287  $6,682               Non-GAAP Gross Profit$132,382  $121,562  $97,984  Non-GAAP Gross Margin (% of net sales) 51.1%  50.0%  48.2%  (1) Included in non-GAAP stock-based compensation charges are stock-based compensation expense and related payroll tax effects.
  Reconciliation of Non-GAAP Operating Expenses

 Three-Month Period Ended  June 26, 2026
 March 27, 2026
 June 27, 2025  (Dollars in thousands) GAAP Operating Expenses$100,143 $108,865 $94,042           Research and Development Expenses         GAAP Research and Development Expenses 55,168  55,535  46,500 Non-GAAP adjustments         Purchased intangible amortization 6  6  3 Restructuring costs 134  1,674  1,131 Stock-based compensation(1) 6,613  4,385  2,911 Other costs(2) 514  956  35 Non-GAAP Research and Development Expenses 47,901  48,514  42,420           Selling, General and Administrative Expenses         GAAP Selling, General and Administrative Expenses 44,975  46,740  47,542 Non-GAAP adjustments         Transaction-related costs 9  496  130 Purchased intangible amortization 535  558  535 Restructuring costs 443  2,630  1,184 Stock-based compensation(1) 9,420  5,229  6,963 Other costs(2) 487  2,628  5,838 Non-GAAP Selling, General and Administrative Expenses 34,081  35,199  32,892           Impairment of assets held for sale —  6,590  —           Total Non-GAAP Adjustments 18,161  25,152  18,730           Non-GAAP Operating Expenses$81,982 $83,713 $75,312  (1) Included in non-GAAP stock-based compensation charges are stock-based compensation expense and related payroll tax effects.
(2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.
  Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin

 Three-Month Period Ended
  June 26, 2026
 March 27, 2026
 June 27, 2025
  (Dollars in thousands)
 GAAP Operating Income (Loss)$25,467  $5,410  $(2,740) GAAP Operating Margin (% of net sales) 9.8 %  2.2 %  (1.3)%              Transaction-related costs 9   496   130  Impairment of assets held for sale —   6,590   —  Purchased intangible amortization 5,630   5,653   5,627  Restructuring costs 660   5,027   3,020  Stock-based compensation(1) 17,205   10,647   10,762  Other costs(2) 1,429   4,026   5,873  Total Non-GAAP Adjustments$24,933  $32,439  $25,412               Non-GAAP Operating Income$50,400  $37,849  $22,672  Non-GAAP Operating Margin (% of net sales) 19.4 %  15.6 %  11.1 %  (1) Included in non-GAAP stock-based compensation charges are stock-based compensation expense and related payroll tax effects.
(2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.
  Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

 Three-Month Period Ended
  June 26, 2026
 March 27, 2026
 June 27, 2025
  (Dollars in thousands)
 GAAP Net Income (Loss)$15,919  $(16,436) $(13,162) GAAP Net Income (Loss) Margin (% of net sales) 6.1 %  (6.8)%  (6.5)%              Interest expense 4,384   5,136   6,359  Interest income (405)  (269)  (234) Income tax provision 1,506   13,749   3,169  Depreciation & amortization 16,867   17,765   16,216    EBITDA$38,271  $19,945  $12,348               Transaction-related costs 9   496   130  Impairment of assets held for sale —   6,590   —  Restructuring costs 662   4,830   2,824  Stock-based compensation(1) 17,205   10,647   10,762  Other costs(2) 5,902   7,184   7,304  Adjusted EBITDA$62,049  $49,692  $33,368  Adjusted EBITDA Margin (% of net sales) 23.9 %  20.4 %  16.4 %  (1) Included in non-GAAP stock-based compensation charges are stock-based compensation expense and related payroll tax effects.
(2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.
  Reconciliation of Non-GAAP Profit before Tax

 Three-Month Period Ended
  June 26, 2026
 March 27, 2026
 June 27, 2025
  (Dollars in thousands)
 GAAP Income (Loss) before Income Taxes$17,425  $(2,687) $(9,993)              Transaction-related costs 9   496   130  Transaction-related interest 225   225   860  Impairment of assets held for sale —   6,590   —  Purchased intangible amortization 5,630   5,653   5,627  Restructuring costs 662   5,074   3,020  Stock-based compensation(1) 17,205   10,647   10,762  Other costs(2) 5,941   7,718   7,304  Total Non-GAAP Adjustments$29,672  $36,403  $27,703               Non-GAAP Profit before Tax$47,097  $33,716  $17,710   (1) Included in non-GAAP stock-based compensation charges are stock-based compensation expense and related payroll tax effects.
(2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.
  Reconciliation of Non-GAAP Income Tax Provision and Non-GAAP Effective Tax Rate

 Three-Month Period Ended
  June 26, 2026
 March 27, 2026
 June 27, 2025
  (Dollars in thousands)  GAAP Income Tax Provision$1,506  $13,749  $3,169  GAAP effective tax rate 8.6%  (511.7)%  (31.7)%              Tax effect of adjustments to GAAP results 3,071   (11,642)  (1,483)              Non-GAAP Income Tax Provision$4,577  $2,107  $1,686  Non-GAAP effective tax rate 9.7%  6.2 %  9.5 %   Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share

 Three-Month Period Ended
  June 26, 2026
 March 27, 2026
 June 27, 2025
  (Dollars in thousands)
 GAAP Net Income (Loss) Attributable to Allegro MicroSystems,
Inc.(1)$15,871  $(16,488) $(13,227) GAAP Basic weighted average common shares 185,806,543   185,309,271   184,587,027  GAAP Diluted weighted average common shares 187,770,061   185,309,271   184,587,027  GAAP Basic Income (Loss) per Share$0.09  $(0.09) $(0.07) GAAP Diluted Income (Loss) per Share$0.08  $(0.09) $(0.07)              Transaction-related costs 9   496   130  Transaction-related interest 225   225   860  Impairment of assets held for sale —   6,590   —  Purchased intangible amortization 5,630   5,653   5,627  Restructuring costs 662   5,074   3,020  Stock-based compensation(2) 17,205   10,647   10,762  Other costs(3) 5,941   7,718   7,304   Total Non-GAAP Adjustments 29,672   36,403   27,703  Tax effect of adjustments to GAAP results(4) (3,071)  11,642   1,483  Non-GAAP Net Income Attributable to Allegro MicroSystems,
Inc.$42,472  $31,557  $15,959  Basic weighted average common shares 185,806,543   185,309,271   184,587,027  Diluted weighted average common shares 187,770,061   187,134,641   185,416,258  Non-GAAP Basic Earnings per Share$0.23  $0.17  $0.09  Non-GAAP Diluted Earnings per Share$0.23  $0.17  $0.09   (1) GAAP Net Income (Loss) Attributable to Allegro MicroSystems, Inc. represents GAAP Net Income (Loss) adjusted for Net Income Attributable to non-controlling interests.
(2) Included in non-GAAP stock-based compensation charges are stock-based compensation expense and related payroll tax effects.
(3) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments.
(4) To calculate the tax effect of adjustments to GAAP results, the Company considers each Non-GAAP adjustment by tax jurisdiction, reverses all discrete items, non-recurring law changes to calculate an annual NG ETR. This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results.
  Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales

 Three-Month Period Ended
  June 26, 2026
 March 27, 2026
 June 27, 2025
  (Dollars in thousands)
 GAAP Operating Cash Flow$21,989  $35,714  $61,618  GAAP Operating Cash Flow (% of net sales) 8.5%  14.7%  30.3% Non-GAAP adjustments            Purchases of property, plant and equipment (8,017)  (17,016)  (10,600) Non-GAAP Free Cash Flow$13,972  $18,698  $51,018  Non-GAAP Free Cash Flow (% of net sales) 5.4%  7.7%  25.1%   Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
[email protected]

Key Takeaways Allegro's thesis ties EVs, ADAS, AI data centers and robotics to broader semiconductor demand.Automotive generated $628.6 million, or 70.6% of fiscal 2026 revenue, keeping vehicle demand central.Fiscal 2026 revenue rose 22.8% to $890.1 million as non-GAAP EPS more than doubled to 54 cents. Allegro MicroSystems, Inc. (ALGM - Free Report) has moved beyond a narrow automotive chip story. Its investment case now rests on whether rising semiconductor content in electric vehicles, advanced driver assistance systems, artificial intelligence data centers and robotics can translate into steadier growth.

That shift matters because the stock no longer depends only on vehicle production. Investors are also watching margins, operating leverage and whether newer markets can reduce auto cyclicality over time.

How Allegro Taps Four Growth MarketsAllegro’s growth thesis centers on systems that need more sensing, motor control and power management. Its magnetic sensors provide current, position, angle and speed feedback, while motor drivers, isolated gate drivers and power integrated circuits support motion control and power conversion.

Those products map directly to electric vehicles, advanced driver assistance systems, AI infrastructure and robotics. Texas Instruments (TXN - Free Report) is relevant in the same broader analog and power-management landscape, while Infineon Technologies AG (IFNNY - Free Report) also targets automotive systems such as electric drivetrains, braking and steer-by-wire.

ALGM Still Runs Through AutomotiveAutomotive remains Allegro’s base business. In fiscal 2026, automotive revenues were $628.6 million, or about 70.6% of total revenues, showing that the company’s broader story still runs through vehicle demand.

That is a strength because Allegro has deep automotive relationships and products aligned with electric powertrains and advanced safety systems. It is also a concentration risk, since downturns or disruptions in the auto market remain an explicit business risk.

Allegro Finds New Fuel in Data CentersThe newer upside is coming from industrial and other markets, especially AI data centers. In the fourth quarter of fiscal 2026, data centers reached a record 14% of sales, rising 41% sequentially, while industrial and other sales increased 49% year over year.

These applications matter because Allegro’s motor drivers support data center cooling, while current sensors and isolated gate drivers address power efficiency and density. If adoption continues, non-automotive markets could diversify revenue and support a higher growth profile.

ALGM Profit Recovery Is Gaining TractionFiscal 2026 showed a clear financial recovery. Revenues rose 22.8% year over year to $890.1 million, and non-GAAP earnings per share more than doubled to 54 cents from 24 cents.

Free cash flow also reached a record $124.9 million. That combination explains why investors are paying closer attention to margin recovery, execution consistency and the company’s ability to turn sales growth into stronger earnings power.

What Allegro Signals Say NowThe bottom line is balanced. Allegro has strong long-term drivers in electrification, AI infrastructure and robotics, but valuation, cyclicality and execution risk still matter.

The stock currently carries a Zacks Rank #2 (Buy), with a VGM Score of B, Growth Score of A and Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Rank points to favorable near-term estimate support, while the Style Scores help investors evaluate the stock across growth, momentum and blended characteristics over a similar one- to three-month framework.

Key Takeaways Allegro's fiscal 2026 revenue rose 22.8% to $890.1 million, while non-GAAP EPS more than doubled.ALGM targets 50%-51% non-GAAP gross margin in fiscal Q1 2027, with a long-term goal above 55%.ALGM trades at 51.13X forward earnings, while automotive made up roughly 71% of fiscal 2026 revenue. Allegro MicroSystems, Inc. (ALGM - Free Report) has rebounded sharply as revenue growth, earnings leverage and end-market demand have improved. The setup is no longer just about recovery. It is about whether the next phase can justify a richer multiple.

The stock’s fundamentals look stronger, but the valuation already reflects a better story. That makes execution in margins, automotive growth and newer industrial markets the key issue for investors.

ALGM Growth Metrics Support the Bull CaseFiscal 2026 showed a clear rebound. Revenues rose 22.8% year over year to $890.1 million, while non-GAAP earnings per share more than doubled to 54 cents from 24 cents.

Momentum also held into the fiscal fourth quarter. Sales increased 26.1% year over year to $243.2 million, and management guided first-quarter fiscal 2027 revenues to $245-$255 million. At the midpoint, that implies 23% year-over-year growth.

The more important point is earnings scalability. Earnings grew much faster than sales in fiscal 2026, helped by operating leverage and stronger demand across Focus Auto, Data Center and Industrial and Other markets.

Why Allegro’s Margin Story Matters MostMargin recovery is central to the buy case because Allegro’s sales growth is already visible. Non-GAAP gross margin reached 50% in the fiscal fourth quarter, up from 45.6% in the year-ago period.

The company expects non-GAAP gross margin of 50%-51% for the first quarter of fiscal 2027. Its longer-term target remains above 55%, supported by operating leverage, product innovation, cost reductions and manufacturing efficiencies.

That path is not automatic. Pricing pressure, average selling price declines and input-cost inflation, including gold and energy costs, remain constraints. Margin expansion may therefore come in stages rather than in a straight line.

Allegro’s Valuation Leaves Less Room for ErrorThe main caution is price. ALGM traded at 51.13X forward 12-month earnings, above 32.39X for the Zacks sub-industry, 24.53X for the Zacks sector and 21.03X for the S&P 500.

The 6-12 month price target of $61 also implies only modest upside from the cited share price of $57.38. That does not negate the fundamental improvement, but it reduces the margin of safety after a major rally.

Investors can also compare ALGM with Ichor Holdings, Ltd. (ICHR - Free Report) and Nova Ltd. (NVMI - Free Report) , both listed among its industry peers. These names give investors additional reference points within the Electronics - Semiconductors group when weighing valuation and momentum.

ALGM Risks Could Limit Further UpsideAutomotive remains the largest exposure, accounting for roughly 71% of fiscal 2026 revenue. That concentration leaves Allegro sensitive to global vehicle production, electric vehicle adoption, advanced driver assistance system deployment and customer inventory cycles.

Newer growth markets also require execution. AI data centers and robotics are attractive, but customer qualification, design wins and product adoption still matter before those opportunities can fully scale.

Supply risk is another factor. Allegro relies on third-party wafer foundries, external assembly and testing partners and manufacturing operations in the Philippines. Trade restrictions, tariffs, geopolitical issues and macro weakness could pressure both revenues and margins.

How Allegro’s Ratings Frame the SetupThe bottom line is that ALGM looks fundamentally stronger, but not obviously cheap after its run. Growth, earnings leverage and margin recovery support the bull case, while valuation and execution risk argue for selectivity.

The stock currently carries a Zacks Rank #2 (Buy). That rank is designed for a one-to-three-month horizon and reflects favorable near-term earnings estimate characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ALGM also has a Growth Score of A and a Momentum Score of A, which point to attractive growth and price-performance characteristics. Its Value Score of F explains the valuation concern, while the VGM Score of B keeps the overall style profile constructive but mixed.

Allegro MicroSystems, Inc. is positioned for multiyear growth via automotive, data center, and industrial robotics markets, but shares reflect much of the near-term upside. Key ALGM growth drivers include higher content per vehicle, data center transition to 800-VDC, and an inflection point in robotics/physical AI expected in CY27. ALGM's balance sheet has improved, with leverage down to 0.65x net debt/aEBITDA, supporting strategic M&A, debt reduction, and opportunistic share repurchases.

Information in Investor’s Business Daily is for informational and educational purposes only and should not be construed as an offer, recommendation, solicitation, or rating to buy or sell securities. The information has been obtained from sources we believe to be reliable, but we make no guarantee as to its accuracy, timeliness, or suitability, including with respect to information that appears in closed captioning. Historical investment performances are no indication or guarantee of future success or performance. Authors/presenters may own the stocks they discuss. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. Information is subject to change without notice. For information on use of our services, please see our Terms of Use.

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Allegro MicroSystems (ALGM) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

Analog Century Management LP reduced its position in shares of Allegro MicroSystems, Inc. (NASDAQ: ALGM) by 14.3% during the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,174,953 shares of the company's stock after selling 196,637 shares during the

Posted by Defense World Staff on Apr 5th, 2026

Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) and Impinj (NASDAQ:PI – Get Free Report) are both mid-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability This table compares Allegro MicroSystems and Impinj’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Allegro MicroSystems -1.57% 4.35% 2.92% Impinj -3.00% 8.49% 3.11% Institutional & Insider Ownership 56.5% of Allegro MicroSystems shares are owned by institutional investors. 0.4% of Allegro MicroSystems shares are owned by company insiders. Comparatively, 12.4% of Impinj shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation This table compares Allegro MicroSystems and Impinj”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Allegro MicroSystems $725.01 million 8.33 -$73.01 million ($0.08) -407.50 Impinj $361.08 million 8.41 -$10.85 million ($0.39) -257.56 Impinj has lower revenue, but higher earnings than Allegro MicroSystems. Allegro MicroSystems is trading at a lower price-to-earnings ratio than Impinj, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk Allegro MicroSystems has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Impinj has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Analyst Recommendations This is a summary of recent recommendations for Allegro MicroSystems and Impinj, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Allegro MicroSystems 1 1 10 0 2.75 Impinj 2 2 5 0 2.33 Allegro MicroSystems presently has a consensus target price of $45.00, indicating a potential upside of 38.04%. Impinj has a consensus target price of $167.63, indicating a potential upside of 66.87%. Given Impinj’s higher probable upside, analysts clearly believe Impinj is more favorable than Allegro MicroSystems.

About Allegro MicroSystems (Get Free Report)

Allegro MicroSystems, Inc., together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers. The company sells its products to original equipment manufacturers and distributors primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment. It operates in the United States, rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets. The company was founded in 1990 and is headquartered in Manchester, New Hampshire. Allegro MicroSystems, Inc. is a subsidiary of Sanken Electric Co., Ltd.

About Impinj (Get Free Report)

Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.

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The stock market dropped Thursday, leaving the S&P 500 and Nasdaq composite just off record highs, but artificial intelligence leaders Allegro MicroSystems (ALGM), Rambus (RMBS) and Silicon Motion Technologies (SIMO) broke out past new buy points during the trading session. After the close, Intel (INTC) surged roughly 16% in extended trade after the chipmaker crushed Wall Street's targets for its…

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Fourth Quarter Sales Increased by 26% Year-over-Year to $243 Million
Fiscal Year 2026 Sales Increased by 23% Year-over-Year to $890 Million

MANCHESTER, N.H., May 07, 2026 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its fourth quarter and full fiscal year ended March 27, 2026.

“We finished fiscal year 2026 with strong momentum, delivering a fifth consecutive quarter of sales growth at $243 million. Non-GAAP EPS nearly tripled year-over-year to $0.17. For the full year, sales grew 23% to $890 million and non-GAAP EPS more than doubled to $0.54. These results reflect strength in Focus Auto sales - including xEV and ADAS – and Data Center, which reached a record 14% of total Q4 sales,” said Mike Doogue, President and CEO of Allegro MicroSystems. “As we enter fiscal 2027, we see demand trends that support continued growth, and remain confident in our ability to execute towards our target financial model.”

Fourth Quarter and Full Fiscal Year 2026 Financial Highlights:

In thousands, except per share dataThree-Month Period Ended  Twelve-Month Period Ended  March 27,
2026  December 26,
2025  March 28,
2025  March 27,
2026  March 28,
2025  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited) Net Sales              Automotive$163,909  $164,543  $139,494  $628,561  $535,205 Industrial and Other 79,278   64,667   53,330   261,535   189,801 Total net sales$243,187  $229,210  $192,824  $890,096  $725,006 GAAP Financial Measures              Gross margin % 47.0%  46.7%  41.4%  46.3%  44.3%Operating margin % 2.2%  4.2%  (6.8)%  2.1%  (2.7)%Diluted EPS$(0.09) $0.04  $(0.08) $(0.08) $(0.39)Non-GAAP Financial Measures              Gross margin % 50.0%  49.9%  45.6%  49.4%  48.0%Operating margin % 15.6%  15.4%  9.0%  14.1%  9.5%Diluted EPS$0.17  $0.15  $0.06  $0.54  $0.24                      Business Outlook

For the first quarter of fiscal year 2027 ending June 26, 2026, the Company expects total net sales to be in the range of
$245 million to $255 million. At the midpoint of this range, it implies growth in net sales of 23% year-over-year.

The Company also estimates the following results on a non-GAAP basis:

Gross Margin is expected to be between 50% and 51%,Operating expenses are expected to be $80 million, plus or minus $2 million, andDiluted Earnings per Share is expected to be between $0.19 and $0.23.
Allegro has not provided a reconciliation of its first fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles (“GAAP”) measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.

Earnings Webcast

A webcast will be held on Thursday, May 7, 2026 at 8:30 a.m., Eastern Time. Michael C. Doogue, President and Chief Executive Officer, and Derek P. D’Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro’s business and financial results.

The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.

About Allegro MicroSystems

Allegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs to propel electrification, automation, AI data center, and robotics forward with solutions that enhance efficiency, performance and sustainability. Allegro’s commitment to quality drives transformation across industries, reinforcing our status as a pioneer in "automotive-grade" technology and a partner in our customers' success. For additional information, please visit https://www.allegromicro.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors and trends affecting our business, including the projected size and growth of markets in which we operate or may operate, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.

Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 28, 2025, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or our manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our dependence on growth in the end markets that use our products and the impact that slowdowns in such growth could have on our financial results; the loss of one or more significant customers; our ability to identify, enter and expand in new markets, and to generate returns on such investments; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the risk of unsolicited acquisition proposals; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to retain key and highly skilled personnel; the impact of restructuring activities on our business and operating results; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; any failure to maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the risks presented by climate change; the risks related to ESG matters; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.

This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their most directly comparable GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.

This press release may not be reproduced, forwarded to any person or published, in whole or in part.

ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)       Three-Month Period Ended  Twelve-Month Period Ended  March 27, 2026  March 28, 2025  March 27, 2026  March 28, 2025 Net sales$243,187  $192,824  $890,096  $725,006 Cost of goods sold 128,912   112,945   478,126   403,479 Gross profit 114,275   79,879   411,970   321,527 Operating expenses:           Research and development 55,535   47,618   205,804   179,649 Selling, general and administrative 46,740   45,459   181,089   161,680 Impairment of assets held for sale 6,590   —   6,590   — Total operating expenses 108,865   93,077   393,483   341,329 Operating income (loss) 5,410   (13,198)  18,487   (19,802)Interest and other expense (8,097)  (5,240)  (33,388)  (31,142)Loss on change in fair value of forward repurchase contract —   —   —   (34,752)Loss before income taxes (2,687)  (18,438)  (14,901)  (85,696)Income tax provision (benefit) 13,749   (3,700)  (248)  (12,933)Net loss (16,436)  (14,738)  (14,653)  (72,763)Net income attributable to non-controlling interests 52   62   244   247 Net loss attributable to Allegro MicroSystems, Inc.$(16,488) $(14,800) $(14,897) $(73,010)Net loss per common share attributable to Allegro MicroSystems, Inc.:           Basic$(0.09) $(0.08) $(0.08) $(0.39)Diluted$(0.09) $(0.08) $(0.08) $(0.39)Weighted average shares outstanding:           Basic 185,309,271   184,169,928   185,035,670   187,707,391 Diluted 185,309,271   184,169,928   185,035,670   187,707,391  Supplemental Schedule of Total Net Sales

The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations:

 Three-Month Period Ended  Change  Twelve-Month Period Ended  Change  March 27,
2026  March 28,
2025  Amount  %  March 27,
2026  March 28,
2025  Amount  %  (Dollars in thousands)  (Dollars in thousands) Automotive$163,909  $139,494  $24,415   18% $628,561  $535,205  $93,356   17%Industrial and Other 79,278   53,330   25,948   49%  261,535   189,801   71,734   38%Total net sales$243,187  $192,824  $50,363   26% $890,096  $725,006  $165,090   23% ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
       March 27  March 28,  2026
(Unaudited)  2025 Assets     Current assets:     Cash and cash equivalents$168,753  $121,334 Restricted cash 6,604   9,773 Trade accounts receivable, net 93,248   84,598 Inventories 181,752   183,914 Prepaid income taxes 1,179   36,662 Prepaid expenses and other current assets 52,070   30,247 Assets held for sale —   16,508 Total current assets 503,606   483,036 Property, plant and equipment, net 308,258   302,919 Deferred income tax assets 80,221   68,528 Goodwill 203,291   202,475 Intangible assets, net 238,675   262,115 Equity investment in related party 22,296   31,695 Other assets 59,828   70,193 Total assets$1,416,175  $1,420,961 Liabilities, Non-Controlling Interest and Stockholders’ Equity     Current liabilities:     Trade accounts payable$44,438  $38,733 Amounts due to related party 4,794   6,535 Accrued expenses and other current liabilities 95,163   65,570 Current portion of long-term debt 1,530   1,423 Total current liabilities 145,925   112,261 Long-term debt 285,746   344,703 Other long-term liabilities 28,059   32,897 Total liabilities 459,730   489,861 Commitments and contingencies     Stockholders’ Equity:     Preferred stock —   — Common stock 1,854   1,843 Additional paid-in capital 1,050,582   1,012,055 Accumulated deficit (68,488)  (53,591)Accumulated other comprehensive loss (29,201)  (30,752)Equity attributable to Allegro MicroSystems, Inc. 954,747   929,555 Non-controlling interest 1,698   1,545 Total stockholders’ equity 956,445   931,100 Total liabilities, non-controlling interest and stockholders’ equity$1,416,175  $1,420,961  ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)       Three-Month Period Ended  Twelve-Month Period Ended  March 27, 2026  March 28, 2025  March 27, 2026  March 28, 2025 Cash flows from operating activities:           Net loss$(16,436) $(14,738) $(14,653) $(72,763)Adjustments to reconcile net loss to net cash provided by operating activities:           Depreciation and amortization 17,765   15,924   67,593   64,502 Amortization of deferred financing costs 297   732   2,245   2,513 Deferred income taxes (4,009)  (4,755)  (11,994)  (16,301)Stock-based compensation 10,647   9,617   47,910   41,868 Loss on change in fair value of forward repurchase contract —   —   —   34,752 Impairment of assets held for sale 6,590   —   6,590   — Provisions for inventory and expected credit losses 1,435   1,697   8,989   9,216 Other non-cash reconciling items 348   339   653   6,984 Changes in operating assets and liabilities:           Trade accounts receivable 6,403   (1,275)  (9,201)  33,081 Inventories (4,994)  7,914   (6,267)  (30,160)Payment to related party (15,000)  —   (15,000)  — Prepaid expenses and other assets 22,935   (3,200)  40,634   (4,601)Trade accounts payable (7,685)  (1,423)  5,996   4,044 Due to and from related parties 46   4,551   (1,740)  5,115 Other changes in operating assets and liabilities, net 17,372   4,970   41,314   (16,337)Net cash provided by operating activities 35,714   20,353   163,069   61,913 Cash flows from investing activities:           Purchases of property, plant and equipment (17,016)  (5,391)  (38,176)  (39,955)Purchases of intangible assets —   (1,180)  —   (1,180)Acquisition of business, net of cash acquired —   —   —   319 Investment in debt security (3,541)  —   (3,541)  — Net cash used in investing activities (20,557)  (6,571)  (41,717)  (40,816)Cash flows from financing activities:           Net proceeds from Refinanced Term Loan Facility 285,000   (402)  285,000   193,081 Repayment of term loan (285,000)  (30,000)  (345,000)  (105,000)Finance lease payments (516)  (498)  (1,368)  (1,201)Receipts on related party notes receivable —   —   —   1,875 Payments for intangible assets (1,000)  —   (5,000)  — Payments for taxes related to net share settlement of equity awards (2,258)  (3,458)  (12,612)  (16,238)Proceeds from issuance of common stock under employee stock purchase plan 1,427   1,524   3,337   3,511 Repurchases of common stock —   —   —   (853,921)Payments for taxes related to repurchase of common stock —   —   (1,713)  — Net proceeds from issuance of common stock —   —   —   665,850 Dividends paid to non-controlling interest —   (19)  (23)  (19)Net cash used in financing activities (2,347)  (32,853)  (77,379)  (112,062)Effect of exchange rate changes on cash and cash equivalents and restricted cash (852)  1,216   277   (89)Net increase (decrease) in cash and cash equivalents and restricted cash 11,958   (17,855)  44,250   (91,054)Cash and cash equivalents and restricted cash at beginning of period 163,399   148,962   131,107   222,161 Cash and cash equivalents and restricted cash at end of period$175,357  $131,107  $175,357  $131,107                  Non-GAAP Financial Measures

In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision (Benefit), non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as a percentage of net sales (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision (Benefit), management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision (Benefit) across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.

The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP financial measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related-party activities and other non-operational costs.

Non-GAAP Income Tax Provision (Benefit)

In calculating the non-GAAP Income Tax Provision (Benefit), we adjust for the tax effect of adjustments to GAAP results which represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below. We also adjust for any discrete tax items and the impact of non-recurring tax law changes to ensure the non-GAAP Income Tax Rate (“NG ETR”) reflects future operations.

Our fiscal year 2026 and 2027 NG ETR excludes the impact of the 2025 One Big Beautiful Bill Act’s one-time research and development amortization election which accelerates the amortization of previously capitalized domestic research and development over a two-year period. The NG ETR is applied to non-GAAP Profit before Tax to arrive at the tax effect of adjustments to GAAP results.

Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026  December 26,
2025  March 28,
2025  March 27,
2026  March 28,
2025  (Dollars in thousands)  (Dollars in thousands) GAAP Gross Profit$114,275  $107,101  $79,879  $411,970  $321,527 GAAP Gross Margin (% of net sales) 47.0%  46.7%  41.4%  46.3%  44.3%               Non-GAAP adjustments              Transaction-related costs —   —   —   —   14 Purchased intangible amortization 5,089   5,089   4,957   20,357   19,582 Restructuring costs 723   659   2,350   2,838   4,088 Stock-based compensation 1,033   1,017   697   3,955   2,877 Other costs 442   449   —   935   — Total Non-GAAP Adjustments$7,287  $7,214  $8,004  $28,085  $26,561                Non-GAAP Gross Profit$121,562  $114,315  $87,883  $440,055  $348,088 Non-GAAP Gross Margin (% of net sales) 50.0%  49.9%  45.6%  49.4%  48.0% Reconciliation of Non-GAAP Operating Expenses                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026  December 26,
2025  March 28,
2025  March 27,
2026  March 28,
2025  (Dollars in thousands)  (Dollars in thousands) GAAP Operating Expenses$108,865  $97,527  $93,077  $393,483  $341,329                Research and Development Expenses              GAAP Research and Development Expenses 55,535   52,878   47,618   205,804   179,649 Non-GAAP adjustments              Transaction-related costs —   33   3   33   1,571 Purchased intangible amortization 6   5   —   22   — Restructuring costs 1,674   2,663   4,429   7,107   5,426 Stock-based compensation 4,385   3,596   3,406   15,799   14,624 Other costs(1) 956   196   —   1,299   3 Non-GAAP Research and Development Expenses 48,514   46,385   39,780   181,544   158,025                Selling, General and Administrative Expenses              GAAP Selling, General and Administrative Expenses 46,740   44,649   45,459   181,089   161,680 Non-GAAP adjustments              Transaction-related costs 496   3   116   630   1,353 Purchased intangible amortization 558   535   535   2,163   2,140 Restructuring costs 2,630   2,032   1,656   7,004   6,011 Stock-based compensation 5,229   8,207   5,513   28,156   24,366 Other costs(1) 2,628   1,260   6,921   10,202   6,303 Non-GAAP Selling, General and Administrative Expenses 35,199   32,612   30,718   132,934   121,507                Impairment of assets held for sale 6,590   —   —   6,590   —                Total Non-GAAP Adjustments 25,152   18,530   22,579   79,005   61,797                Non-GAAP Operating Expenses$83,713  $78,997  $70,498  $314,478  $279,532                (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.  Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026  December 26,
2025  March 28,
2025  March 27,
2026  March 28,
2025  (Dollars in thousands)  (Dollars in thousands) GAAP Operating Income (Loss)$5,410  $9,574  $(13,198) $18,487  $(19,802)GAAP Operating Margin (% of net sales) 2.2%  4.2%  (6.8)%  2.1%  (2.7)%               Transaction-related costs 496   36   119   663   2,938 Impairment of assets held for sale 6,590   —   —   6,590   — Purchased intangible amortization 5,653   5,629   5,492   22,542   21,722 Restructuring costs 5,027   5,354   8,435   16,949   15,525 Stock-based compensation 10,647   12,820   9,616   47,910   41,867 Other costs(1) 4,026   1,905   6,921   12,436   6,306 Total Non-GAAP Adjustments$32,439  $25,744  $30,583  $107,090  $88,358                Non-GAAP Operating Income$37,849  $35,318  $17,385  $125,577  $68,556 Non-GAAP Operating Margin (% of net sales) 15.6%  15.4%  9.0%  14.1%  9.5%               (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.  Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026  December 26,
2025  March 28,
2025  March 27,
2026  March 28,
2025  (Dollars in thousands)  (Dollars in thousands) GAAP Net (Loss) Income$(16,436) $8,362  $(14,738) $(14,653) $(72,763)GAAP Net (Loss) Income Margin (% of net sales) (6.8)%  3.6%  (7.6)%  (1.6)%  (10.0)%               Interest expense 5,136   4,910   6,874   22,135   30,366 Interest income (269)  (114)  (222)  (776)  (1,524)Income tax provision (benefit) 13,749   (7,868)  (3,700)  (248)  (12,933)Depreciation & amortization 17,765   17,001   15,924   67,593   64,502 EBITDA$19,945  $22,291  $4,138  $74,051  $7,648                Transaction-related costs 496   36   119   663   5,742 Impairment of assets held for sale 6,590   —   —   6,590   — Restructuring costs 4,830   5,000   8,277   16,057   15,112 Stock-based compensation 10,647   12,820   9,616   47,910   41,867 Loss on change in fair value of forward repurchase contract —   —   —   —   34,752 Other costs(1) 7,184   6,037   6,301   24,796   7,911 Adjusted EBITDA$49,692  $46,184  $28,451  $170,067  $113,032 Adjusted EBITDA Margin (% of net sales) 20.4%  20.1%  14.8%  19.1%  15.6%               (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.  Reconciliation of Non-GAAP Profit before Tax                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026  December 26,
2025  March 28,
2025  March 27,
2026  March 28,
2025  (Dollars in thousands)  (Dollars in thousands) GAAP (Loss) Income before Income Taxes$(2,687) $494  $(18,438) $(14,901) $(85,696)               Transaction-related costs 496   36   119   663   5,742 Transaction-related interest 225   225   272   1,955   1,314 Impairment of assets held for sale 6,590   —   —   6,590   — Purchased intangible amortization 5,653   5,629   5,492   22,542   21,722 Restructuring costs 5,074   5,354   8,482   17,184   15,317 Stock-based compensation 10,647   12,820   9,616   47,910   41,867 Loss on change in fair value of forward repurchase contract —   —   —   —   34,752 Other costs(1) 7,718   6,422   6,689   25,715   12,351 Total Non-GAAP Adjustments$36,403  $30,486  $30,670  $122,559  $133,065                Non-GAAP Profit before Tax$33,716  $30,980  $12,232  $107,658  $47,369                (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.  Reconciliation of Non-GAAP Income Tax Provision (Benefit) and Non-GAAP Effective Tax Rate                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026  December 26,
2025  March 28,
2025  March 27,
2026  March 28,
2025  (Dollars in thousands)  (Dollars in thousands) GAAP Income Tax Provision (Benefit)$13,749  $(7,868) $(3,700) $(248) $(12,933)GAAP effective tax rate (511.7)%  (1,592.7)%  20.1%  1.7%  15.1%               Tax effect of adjustments to GAAP results (11,642)  10,002   4,126   7,610   14,200                Non-GAAP Income Tax Provision$2,107  $2,134  $426  $7,362  $1,267 Non-GAAP effective tax rate 6.2%  6.9%  3.5%  6.8%  2.7% Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026  December 26,
2025  March 28,
2025  March 27,
2026  March 28,
2025  (Dollars in thousands)  (Dollars in thousands) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.(1)$(16,488) $8,299  $(14,800) $(14,897) $(73,010)GAAP Basic weighted average common shares 185,309,271   185,172,199   184,169,928   185,035,670   187,707,391 GAAP Diluted weighted average common shares 185,309,271   186,208,258   184,169,928   185,035,670   187,707,391 GAAP Basic (Loss) Income per Share$(0.09) $0.04  $(0.08) $(0.08) $(0.39)GAAP Diluted (Loss) Income per Share$(0.09) $0.04  $(0.08) $(0.08) $(0.39)               Transaction-related costs 496   36   119   663   5,742 Transaction-related interest 225   225   272   1,955   1,314 Impairment of assets held for sale 6,590   —   —   6,590   — Purchased intangible amortization 5,653   5,629   5,492   22,542   21,722 Restructuring costs 5,074   5,354   8,482   17,184   15,317 Stock-based compensation 10,647   12,820   9,616   47,910   41,867 Loss on change in fair value of forward repurchase contract —   —   —   —   34,752 Other costs(2) 7,718   6,422   6,689   25,715   12,351 Total Non-GAAP Adjustments 36,403   30,486   30,670   122,559   133,065 Tax effect of adjustments to GAAP results(3) 11,642   (10,002)  (4,126)  (7,610)  (14,200)Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc.$31,557  $28,783  $11,744  $100,052  $45,855 Basic weighted average common shares 185,309,271   185,172,199   184,169,928   185,035,670   187,707,391 Diluted weighted average common shares 187,134,641   186,208,258   185,247,919   186,318,359   188,629,402 Non-GAAP Basic Earnings per Share$0.17  $0.16  $0.06  $0.54  $0.24 Non-GAAP Diluted Earnings per Share$0.17  $0.15  $0.06  $0.54  $0.24                (1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) Income adjusted for Net Income Attributable to non-controlling interests. (2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments. (3) To calculate the tax effect of adjustments to GAAP results, the Company considers each Non-GAAP adjustment by tax jurisdiction, reverses all discrete items, non-recurring law changes to calculate an annual NG ETR. This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results.  Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales                    Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026  December 26,
2025  March 28,
2025  March 27,
2026  March 28,
2025  (Dollars in thousands)  (Dollars in thousands) GAAP Operating Cash Flow$35,714  $45,375  $20,353  $163,069  $61,913 GAAP Operating Cash Flow (% of net sales) 14.7%  19.8%  10.6%  18.3%  8.5%Non-GAAP adjustments              Purchases of property, plant and equipment (17,016)  (4,116)  (5,391)  (38,176)  (39,955)Non-GAAP Free Cash Flow$18,698  $41,259  $14,962  $124,893  $21,958 Non-GAAP Free Cash Flow (% of net sales) 7.7%  18.0%  7.8%  14.0%  3.0%                     Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
[email protected]

Allegro MicroSystems, Inc. (ALGM) Q4 2026 Earnings Call Transcript

MANCHESTER, N.H., May 13, 2026 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced that the company will present at TD Cowen’s 54th Annual Technology, Media & Telecom Conference on Wednesday, May 27, 2026 at the InterContinental New York Barclay in New York, NY. Derek D’Antilio, EVP and Chief Financial Officer, is scheduled to participate in a fireside chat at 1:15 PM Eastern Time (ET).

A live and archived webcast of the fireside chat will be available on the Investor Relations page of the company’s website at www.allegromicro.com.

About Allegro MicroSystems

Allegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs to propel electrification, automation, AI data center, and robotics forward with solutions that enhance efficiency, performance and sustainability. Allegro’s commitment to quality drives transformation across industries, reinforcing our status as a pioneer in "automotive-grade" technology and a partner in our customers' success. For additional information, visit https://www.allegromicro.com/en/.  

Contact: Jalene Hoover
VP of IR & Corporate Communications
Phone: +1 512 751 6526
[email protected]

Shares of Allegro MicroSystems, Inc. (ALGM - Free Report) have gained 1.7% over the past four weeks to close the last trading session at $41.35, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $53.58 indicates a potential upside of 29.6%.

The average comprises 12 short-term price targets ranging from a low of $45.00 to a high of $62.00, with a standard deviation of $4.23. While the lowest estimate indicates an increase of 8.8% from the current price level, the most optimistic estimate points to an 49.9% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

But, for ALGM, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in ALGMThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 9.4% over the past month, as two estimates have gone higher compared to no negative revision.

Moreover, ALGM currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much ALGM could gain, the direction of price movement it implies does appear to be a good guide.

On May 26, 2026, Allegro Microsystems Inc ALGM shares rose 10.5% to a current price of $50.76. This significant increase comes in the context of a 52-week price range of $22.41 to $51.40, highlighting a remarkable rise in investor interest and confidence in the stock.

GF Value™ verdict: Current price of $50.76 is 76.1% above the GF Value™ of $28.83, indicating the stock is significantly overvalued.GF Score™ is 82/100, suggesting a strong overall quality as a stock.Most notable signal: Insiders sold $3.4M worth of shares in the last 3 months with no purchases reported. Is ALGM Overvalued or Undervalued? Allegro Microsystems Inc's current share price of $50.76 is significantly above the GF Value™ estimate of $28.83, representing a 76.1% margin of overvaluation. This disparity suggests that the stock is trading at a price that may not be justified by its underlying fundamentals. The GF Valuation label categorizes the stock as "Significantly Overvalued," which indicates a higher risk for potential declines if market sentiment shifts or if the company fails to meet growth expectations.

The margin of safety is critical for investors to consider, as buying into a stock that is significantly overvalued can expose them to potential losses in the future. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Therefore, the current price may not only be inflated but also suggest that a correction could be on the horizon if earnings do not catch up to the elevated valuation.

How Does ALGM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 51.5x 42.8x Allegro Microsystems' current P/E ratio of 51.5x exceeds its 5-year median P/E of 42.8x, suggesting that the stock is trading at a premium compared to its historical valuation. This aligns with the GF Value™ verdict that indicates the stock is overvalued, reinforcing the notion that current price levels may not be sustainable without corresponding earnings growth.

What Does ALGM's GF Score™ Tell Us? Metric Rating GF Score™ 82/100 Financial Strength 7/10 Profitability 7/10 Growth 8/10 Valuation 3/10 Momentum 10/10 The GF Score™ of 82/100 reflects a strong overall quality for Allegro Microsystems Inc, particularly in terms of growth and momentum. The profitability and financial strength scores of 7/10 indicate solid operational fundamentals. However, the low valuation rank of 3/10 highlights concerns regarding its current pricing relative to intrinsic value. This mixed scoring suggests that while the company possesses strong growth potential, the high valuation could pose risks for long-term investors.

What Are Insiders Doing with ALGM Stock? Recent insider activity has shown a notable trend, with insiders selling $3.4 million in shares over the last three months, and no reported purchases. This pattern of selling may signal a lack of confidence from those closest to the company, potentially indicating that insiders believe the stock is currently overvalued. Such selling activity can raise red flags for external investors, suggesting caution warranted in entering or holding the stock.

What This Means for Investors Based on the analysis of GF Value™, Allegro Microsystems Inc is currently overvalued. The significant gap between its market price and intrinsic value, along with the recent insider selling, presents notable risks for potential investors. Caution and thorough due diligence are recommended given the high valuation levels.

For the complete analysis, visit the Allegro Microsystems Inc ALGM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ALGM's GF Score™?

ALGM's GF Score™ is 82/100, indicating a strong overall quality as a stock based on its financial strength, profitability, growth, valuation, and momentum.

Is ALGM overvalued or undervalued?

ALGM is currently overvalued, with a market price of $50.76 compared to a GF Value™ estimate of $28.83, representing a 76.1% overvaluation.

What is ALGM's P/E ratio?

ALGM's current P/E ratio is 51.5x, which is higher than its 5-year median P/E of 42.8x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

On May 27, 2026, Allegro Microsystems Inc ALGM shares fell 3.5% to $49.00, continuing a volatile trend amidst a strong recent performance. Over the past week, the stock has gained 10.5%, and it has achieved an impressive year-to-date increase of 85.8%. The 52-week high stands at $51.66, while the low is $22.41.

GF Value™ verdict: Current price of $49.00 is 70.0% above the GF Value™ of $28.83, indicating significant overvaluation.GF Score™ of 82/100 signals a strong overall rating for ALGM.Notable signal: Insider activity shows that insiders sold $3.6M in shares over the last three months, with no purchases reported. Is ALGM Overvalued or Undervalued? The current price of Allegro Microsystems Inc ALGM at $49.00 is significantly above its GF Value™ estimate of $28.83, which suggests that the stock is overvalued by 70.0%. This disparity indicates a lack of margin of safety for potential investors. When a stock is overvalued, the risk of a price correction increases, especially if market conditions change or if the company fails to meet growth expectations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

Given the GF Valuation label of "Significantly Overvalued," it is important to exercise caution. The high valuation might reflect market enthusiasm or speculative trading rather than underlying business fundamentals. This situation could present a risk for current shareholders and potential investors, especially if the company's performance does not justify the lofty price levels.

How Does ALGM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) Not provided 42.8x (5-Year Median) Forward P/E 49.7x N/A Currently, Allegro Microsystems Inc's forward P/E ratio of 49.7x indicates that the stock is trading above its historical median P/E of 42.8x. This analysis aligns with the GF Value™ verdict, reinforcing the notion that ALGM is overvalued. Investors may need to reassess their positions, especially in light of the substantial premium over historical valuation metrics.

What Does ALGM's GF Score™ Tell Us? Metric Rating GF Score™ 82 Financial Strength 7/10 Profitability 7/10 Growth 8/10 Valuation 3/10 Momentum 10/10 The GF Score™ of 82/100 suggests that Allegro Microsystems Inc has strong growth potential and solid financial health, with growth rated at 8/10 and financial strength at 7/10. However, the valuation score of 3/10 highlights a significant area of concern, as it points to overvaluation relative to the stock's intrinsic value. The momentum rank of 10/10 indicates that the stock has been performing well in the short term, but this should not overshadow the valuation concerns.

What Are Insiders Doing with ALGM Stock? Recent insider activity has shown a trend of selling, with insiders offloading $3.6M worth of shares in the last three months and no reported insider purchases. This pattern might suggest a lack of confidence among insiders regarding the company's future performance at current valuation levels. Insider selling can often be interpreted as a signal that insiders believe the stock is overvalued, which aligns with the current GF Value™ assessment.

What This Means for Investors Based on the GF Value™ assessment, Allegro Microsystems Inc ALGM is currently overvalued at $49.00, significantly above its estimated fair value of $28.83. Investors may need to exercise caution as the stock appears to be trading at a premium, which could expose them to potential downside risks.

For the complete analysis, visit the Allegro Microsystems Inc ALGM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ALGM's GF Score™?

ALGM's GF Score™ is 82/100, indicating a strong overall ranking based on key metrics such as financial strength, profitability, and growth potential.

Is ALGM overvalued or undervalued?

ALGM is currently overvalued, with a market price of $49.00 compared to a GF Value™ estimate of $28.83, indicating a significant premium.

What is ALGM's P/E ratio?

The forward P/E for ALGM is 49.7x, which is above its historical 5-year median P/E of 42.8x, suggesting that the stock is trading at a higher valuation than in the past.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].