Description

Allegro MicroSystems’ $225 Million Revenue Outlook: Is Wall Street Missing Its AI Growth?

Allegro MicroSystems, Inc. reported its second quarter fiscal 2026 results with net sales of $214 million, reflecting a 5% sequential increase and 14% year-over-year growth. The company delivered a gross margin of 49.6%, an operating margin of 13.9%, and non-GAAP earnings per share of $0.13, representing significant sequential and annual improvements. The automotive segment showed strength with an 8% sequential and 12% year-over-year increase, driven notably by e-Mobility, which grew 21% year-over-year. Growth was also supported by motor driver design wins in powertrain-agnostic applications, such as in-cabin and chassis motors. Conversely, industrial and other sales saw a 1% sequential decline but 23% growth year-over-year, with data center applications achieving record quarterly sales amid rising demand spurred by next-generation AI workloads and power supply upgrades. Geographically, sales increased in all regions except Europe, where seasonal declines persisted. Notably, China accounted for 29% of sales and demonstrated ongoing improvement following inventory normalization.