Allegro Microsystems, Inc. ( (ALGM) ) has released its Q1 earnings. Here is a breakdown of the information Allegro Microsystems, Inc. presented to its investors.
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Allegro MicroSystems, Inc. is a global leader in power and sensing semiconductor solutions, focusing on enhancing efficiency and sustainability in the automotive, clean energy, and industrial automation sectors. The company recently announced its financial results for the first quarter of 2026, showcasing a significant 22% increase in sales year-over-year, reaching $203 million. This growth was primarily driven by strong performances in the e-Mobility and Industrial sectors, which saw increases of 31% and 50%, respectively.
Key financial highlights include a non-GAAP earnings per share of $0.09, nearly tripling from the previous year, and a free cash flow of $51 million, representing 25% of sales. The company also made substantial voluntary debt repayments totaling $35 million in the first quarter. Allegro’s gross margin improved to 48.2% on a non-GAAP basis, reflecting the company’s focus on operational efficiency and strategic growth in its core markets.
Allegro’s management expressed optimism about the company’s future, citing strong bookings, an increasing backlog, and a return to growth in automotive and industrial markets. The company is also seeing robust design win activity in its strategic focus areas, which bodes well for future performance.
Looking ahead, Allegro MicroSystems anticipates continued growth in the second quarter of fiscal year 2026, with expected net sales ranging from $205 million to $215 million, representing a 12% year-over-year increase at the midpoint. The company also projects a non-GAAP gross margin between 48% and 50%, and diluted earnings per share between $0.10 and $0.14, reflecting a 50% increase year-over-year at the midpoint.