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Jun 27
Allegro MicroSystems Q1 2026 Earnings Report
Allegro MicroSystems reported strong first quarter results for fiscal year 2026, with sales increasing 22% year-over-year, driven by growth in e-Mobility and Industrial and Other segments. The company also achieved significant operating leverage, leading to a nearly threefold increase in non-GAAP EPS.
Key Takeaways
Allegro MicroSystems delivered robust first-quarter fiscal year 2026 results, with total net sales reaching $203.4 million, a 22% increase year-over-year. This growth was primarily fueled by strong performances in the e-Mobility and Industrial and Other segments, which saw increases of 31% and 50% respectively. Non-GAAP diluted EPS significantly improved to $0.09, demonstrating strong operating leverage. The company also reported healthy free cash flow of $51 million.
Total net sales for Q1 FY26 increased by 22% year-over-year, reaching $203.4 million.
Non-GAAP diluted EPS for the quarter was $0.09, nearly tripling from the prior year, indicating significant operating leverage.
The Automotive segment revenue grew by 13% year-over-year to $144.264 million, while the Industrial and Other segment surged by 50% to $59.141 million.
Free cash flow for the quarter was $51 million, representing 25% of sales, and the company made voluntary debt repayments of $35 million.
Allegro MicroSystems
Allegro MicroSystems
Allegro MicroSystems Revenue by Segment
Revenue by Segment
Automotive Revenue
CapyFin.comIndustrial and Other Revenue
CapyFin.com Forward Guidance
For the second quarter of fiscal year 2026, Allegro MicroSystems expects total net sales to be between $205 million and $215 million, implying a 12% year-over-year growth at the midpoint. Non-GAAP Gross Margin is projected to be between 48% and 50%, and non-GAAP Diluted Earnings per Share is expected to be between $0.10 and $0.14, representing a 50% year-over-year increase at the midpoint.
Positive Outlook
- Expected total net sales for Q2 FY26 are in the range of $205 million to $215 million.
- Midpoint of net sales guidance implies a 12% year-over-year growth.
- Non-GAAP Gross Margin is expected to improve, ranging from 48% to 50%.
- Non-GAAP Diluted Earnings per Share is projected to be between $0.10 and $0.14.
- Midpoint of non-GAAP Diluted EPS guidance indicates a 50% year-over-year increase.
Challenges Ahead
- Operating expenses are expected to be approximately $73 million.
- Interest expense is anticipated to be around $5 million, including an additional voluntary debt repayment.
- The company has not provided a reconciliation of its non-GAAP outlook to GAAP measures due to the difficulty of estimating reconciling items without unreasonable efforts.
- Certain factors materially significant to estimating these items are out of the company's control and/or cannot be reasonably predicted.
- The forward-looking statements are subject to known and unknown risks, uncertainties, and important factors that may cause actual results to differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income