Allegro MicroSystems

Allegro MicroSystems reported Q1 FY2027. EPS came in at $0.23 against a $0.21 consensus, beat by 9.5%. Revenue was $259.2M versus $251.4M expected, beat by 3.1%. Gross margin was 48.5%, up 140 bps from last quarter.

Allegro MicroSystems reported a solid Q4 FY2026, with both revenue and EPS beating street estimates. Revenue came in at $243.2 million, a 3.1% surprise over the $235.9 million estimate, while EPS of $0.17 exceeded the $0.16 estimate by 4.2%.

Allegro MicroSystems cleared a low bar on Q3 revenue and EPS, but the investable point is that power and data-center mix are pulling margins back toward the company’s own target band faster than consensus likely modeled. The market priced a modest recovery; what surprised was the combination of +3.8% revenue upside, +7.1% EPS upside, 49.9% non-GAAP gross margin, and a Q4 guide that keeps sales near the new level rather than giving back the quarter.

Allegro MicroSystems missed the Street’s revenue number by -0.8%, but the actionable surprise is that EPS beat by +8.3% while revenue is still only $214.3 million. The market may be underpricing the operating leverage embedded in a slow, automotive-led recovery, and overpricing the risk that this is just another analog inventory bounce.

Allegro MicroSystems missed Street revenue by -2.8% while matching EPS, yet the investable point is that management is guiding gross margin back toward the high-40s before revenue has recovered to prior-cycle levels. The market may be treating this as a routine auto-sensor recovery print; the variant view is that the equity debate should pivot to whether Q2’s $205 million to $215 million revenue guide is enough to validate structural margin repair, because demand is still below the company’s own end-demand reference point.