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Earnings analysis · 10-Q

ALGM earnings analysis

Filed October 30, 2026 · Our reading of the company's report

The latest report

Allegro delivered a strong fiscal second quarter, with revenue of $276.884 million, GAAP diluted EPS of $0.12, gross margin of 49.2%, and operating margin of 12.8%. Revenue increased approximately 6.9% sequentially and…

Read full summary

Allegro delivered a strong fiscal second quarter, with revenue of $276.884 million, GAAP diluted EPS of $0.12, gross margin of 49.2%, and operating margin of 12.8%. Revenue increased approximately 6.9% sequentially and 29% year over year, while data center sales more than doubled and industrial sales drove growth. Non-GAAP free cash flow improved to $30.505 million, and the Q3 outlook calls for $278 million-$288 million of revenue and $0.25-$0.29 of non-GAAP EPS. The 10-Q identifies no material changes to previously disclosed risk factors.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

57% Gross margin Operating margin Nov 2020 Oct 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $51 Operating expenses $36 Left as operating profit $13

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Nov 2020 Oct 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$0.12

What stood out

  • Revenue accelerated

    Second-quarter revenue was $276.884 million, up from $259 million in the prior quarter, or approximately 6.9%, and up 29% year over year.

  • EPS beat estimates

    GAAP diluted EPS was $0.12 versus $0.08 in the prior quarter. Non-GAAP diluted EPS was $0.26, exceeding the $0.23 consensus estimate by $0.03.

  • Margins expanded

    GAAP gross margin expanded to 49.2% from 48.5% in the prior quarter, a 70-basis-point improvement, while operating margin increased to 12.8% from 9.8%, a 300-basis-point improvement.

  • Cash generation improved

    Non-GAAP free cash flow was $30.505 million, more than double the $14 million generated in the prior quarter.

  • Data center growth surged

    Data center sales were reported as more than doubling year over year, while industrial sales were identified as a primary growth driver; the filing data provided does not include dollar revenue by segment.

  • Positive Q3 outlook

    The Q3 fiscal 2027 outlook calls for revenue of $278 million-$288 million and non-GAAP diluted EPS of $0.25-$0.29, with non-GAAP gross margin of 51.5%-52.5%.

What to watch

  • Risk factors unchanged

    The 10-Q states that there have been no material changes to the risk factors in the 2026 Annual Report filed May 21, 2026, limiting new risk disclosure but leaving previously identified risks unchanged.

  • Market-risk exposure persists

    The company reported no material changes in exposure to interest-rate, foreign-currency, or inflation risk since March 27, 2026; these exposures remain relevant despite the lack of a new quantified impact.

Management's outlook

The filing does not establish a comparable prior outlook. The associated Q3 fiscal 2027 outlook called for sales of $278 million-$288 million and non-GAAP diluted EPS of $0.25-$0.29; no prior Q3 outlook was disclosed.

Earlier filings 4

10-K · May 21, 2026

Allegro MicroSystems reported solid financial growth in fiscal year 2026, with total net sales increasing by 22.8% to $890.1 million, driven by demand for automotive and industrial products. The company achieved a gross…

10-Q · January 31, 2025

Allegro reported net sales of $177,872,000 and a GAAP diluted loss per share of $(0.04) for the three-month period ended December 27, 2024, a sharp year-over-year decline in revenue and profit. Gross profit fell to…

10-Q · August 2, 2024

Allegro reported net sales of $166,919,000 for the quarter ended June 28, 2024, down from $278,293,000 a year earlier, producing gross profit of $74,771,000 and an operating loss of $10,630,000. The company recorded a…

10-Q · February 1, 2023

Allegro MicroSystems reported strong Q3 results with a revenue increase of 33.3% year-over-year, reaching $248.8 million, exceeding estimates. A notable EPS jump to $0.33 is attributed to improved operating margins…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.