ALGM

ALLEGRO MICROSYSTEMS INC

Technology | Mid Cap

$0.12

EPS Forecast

$239.3

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2026-08-09

Allegro MicroSystems (ALGM) Signals Momentum in Q1 2027: Revenue Up, EPS Turns Positive on Data Center Demand

Allegro MicroSystems, Inc. (ticker: ALGM) reported its first quarter of fiscal 2027 results, with revenue of $259 million, up 27% year over year. The company also showed a notable pivot in profitability, delivering GAAP EPS of $0.08 (versus a $0.07 loss per share in the prior-year period) and non-GAAP EPS of $0.23, more than 2.5 times the prior-year level. Management highlighted data center strength as a key driver, noting that the data center segment reached a record share of total sales at 17%, alongside continued momentum in xEV and ADAS applications.

The release frames the quarter as the start of a momentum-building year, with increasing bookings and a rising backlog cited as evidence of continued demand across Allegro’s power and sensing semiconductor portfolio.

Key metrics at a glance

  • Net sales: $259 million, up 27% year over year
  • GAAP EPS: $0.08
  • Non-GAAP EPS: $0.23, more than 2.5x the level in the first quarter of fiscal 2026
  • Data center contribution: 17% of total sales (a notable lift in mix)
  • Growth drivers: Strength in xEV and ADAS markets
  • Momentum indicators: Increasing bookings and expanding backlog

In the accompanying remarks, management stressed that the first quarter marked the sixth consecutive quarter of sales growth and underscored the cross-section of AI, electrification, and automation as the defining megatrends shaping Allegro’s opportunity set.

Leadership perspective

“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.”

What the highlights imply for the quarter and beyond

The combination of a double-digit revenue rise and a flip from GAAP losses to a positive EPS print suggests meaningful improvement in operating leverage and product mix. The data center contribution near 17% of sales signals a disciplined shift toward higher-growth, higher-value segments, even as Allegro maintains exposure to xEV and ADAS, which have been durable demand themes in the broader semiconductor landscape.

The press release provides a snapshot rather than a complete forecast. No explicit revenue outlook or forward-looking guidance is included in the excerpt, leaving investors to parse the trajectory from quarterly bookings, backlog expansion, and the ongoing mix shift. In practice, market participants will compare Allegro’s EPS figures—both GAAP and non-GAAP—to EPS consensus as they size up profitability against peers, while watching for any revenue forecast updates in upcoming communications.

Implications for Allegro and its peers

For Allegro, the first-quarter momentum reinforces a narrative of expanding margins embedded in a growing top line. The stronger non-GAAP EPS, paired with a pivot to a positive GAAP EPS, may reflect a mix of favorable pricing, revenue mix shifts toward data-center-related applications, and disciplined cost management. The backlog expansion adds a layer of visibility that investors typically value when assessing earnings durability.

Sector peers—particularly those serving data center cooling, AI-enabled automation, and mobility stacks—could read Allegro’s results as a defensible signal that power and sensing chips remain a material lever for faster-growing end markets. If the data center-driven demand persists, you might rationalize a broader re-rating of suppliers with exposure to xEV/ADAS and AI-driven automation. Of course, the inverse is true if supply chains tighten or if AI-driven demand cools; then the same data points could reverse into caution about sustained margins.

Bottom line for investors

The Q1 2027 print from ALGM paints a picture of renewed momentum, with revenue growth broadening and EPS improving meaningfully on both GAAP and non-GAAP bases. The data-center mix and strength in xEV/ADAS point to a healthy adjacent demand cycle for Allegro’s sensors and power solutions. In the near term, investors will want to see how Allegro budgets for the year ahead—specifically any formal revenue forecast and guidance adjustments that could validate the momentum beyond a single quarter.

As always with earnings, the real question is how the numbers stand up to EPS consensus expectations and how the company positions itself relative to its peers in the complex, capital-intensive world of motion-control semiconductors. If the trend persists, Allegro may find itself in a position where the cost of staying disruptive is matched by a growing ability to monetize its core capabilities across data center, automotive, and industrial applications.

Notes on the disclosure

The press release excerpt covers the quarter ended June 26, 2026, with dates and figures aligned to Allegro’s fiscal calendar. Additional financial highlights and tabular data accompany the release, including period-end figures and per-share data in the “Three-Month Period Ended” section.