Allegro MicroSystems Reports Second Quarter 2026 Results

Core Insights - Allegro MicroSystems reported a 14% year-over-year increase in sales, reaching $214 million for the second quarter ended September 26, 2025, driven by growth in e-Mobility and Industrial sectors [2][18] - The company achieved a non-GAAP EPS of $0.13, reflecting over 60% growth year-over-year, with significant contributions from automotive sales and data center performance [2][3] - The outlook for the third quarter of fiscal year 2026 anticipates net sales between $215 million and $225 million, indicating a potential 24% year-over-year growth [3][4] Financial Performance - Sales Breakdown: - Automotive sales were $155.845 million, up 12% from $139.680 million year-over-year - Industrial and Other sales reached $58.449 million, a 23% increase from $47.711 million year-over-year [18] - Gross Margin: - GAAP gross margin was 46.3%, compared to 45.7% in the previous year - Non-GAAP gross margin improved to 49.6% from 48.8% year-over-year [16][29] - Operating Income: - The company reported an operating income of $6.243 million, compared to a loss of $6.563 million in the previous year [17] Future Outlook - The company expects gross margin for the third quarter to be between 49% and 51% and anticipates interest expenses around $5 million [4][5] - Diluted earnings per share for the upcoming quarter are projected to be between $0.12 and $0.16 [4] Business Strategy - Allegro MicroSystems is focusing on expanding its presence in the automotive and clean energy sectors, leveraging over three decades of expertise in magnetic sensing and power ICs [8] - The company has reported strong year-to-date design wins, particularly in e-Mobility and data center markets, indicating a robust pipeline for future growth [2][3]