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Jun 27, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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