Allegro MicroSystems Inc · Q1 2026 earnings

Briefing

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.

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.

Headline financials

Revenue & EPS history

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.