Allegro MicroSystems, Inc. Q4 2026 Earnings Recap

Allegro's stock declined 4.7% post-earnings as investors reacted negatively to a cautious outlook and signs of deceleration in key metrics, overshadowing solid top-line growth and margin gains.

Key Takeaways

• Fiscal 2026 sales grew 23% year-over-year to $890 million, driven by 17% automotive growth and a 38% increase in industrial and other end markets.
• Fourth quarter EPS of $0.17 nearly tripled year-over-year; full year EPS more than doubled to $0.54 per share, reflecting operational leverage and product mix.
• Data center sales surged 41% sequentially in Q4 to 14% of total sales, benefiting from expanding product adoption in fans, power supplies, and new high-voltage architectures.
• Automotive xEV and ADAS sales increased 30% in FY '26, but the overall auto growth of 17% indicates inventory digestion remains a headwind.
• Despite design win momentum and a strong backlog, management’s cautious tone on near-term demand and evolving market conditions pressured the stock.