Allegro MicroSystems (ALGM) Q1 2027 earnings summary

Executive summary

• Achieved sixth consecutive quarter of sequential sales growth, with Q1 FY27 sales of $259.2 million, up 27%–27.5% year-over-year and above guidance.

• GAAP EPS improved to $0.08 from a $0.07 loss per share year-over-year; non-GAAP EPS reached $0.23, more than 2.5x higher than Q1 FY26 and at the high end of guidance.

• Data center segment reached a record 17% of total sales, with continued strength in xEV, ADAS, and industrial markets.

• Bookings and backlog expanded for the seventh consecutive quarter, with robust design win momentum and a 30% year-over-year increase in design wins.

• Net income was $15.9 million, compared to a net loss of $13.2 million in the prior year period.

Financial highlights

• Q1 FY27 net sales: $259.2 million, up 7% sequentially and 27%–27.5% year-over-year.

• Non-GAAP EPS: $0.23, up 35% sequentially and 156% year-over-year; GAAP EPS: $0.08.

• Non-GAAP gross margin: 51.1%, up from 50% in Q4 and 48.2% in Q1 FY26; GAAP gross margin: 48.5%.

• Non-GAAP operating margin: 19.4% (up from 15.6% in Q4); GAAP operating margin: 9.8%.

• Free cash flow: $14 million (5.4% of sales); cash and cash equivalents: $170.5 million.

Outlook and guidance

• Q2 FY27 net sales expected between $265 million and $275 million, implying 26% year-over-year growth at midpoint.

• Non-GAAP gross margin guidance: 50.75%–51.75%.

• Non-GAAP EPS expected between $0.23–$0.26, midpoint implies 88% year-over-year growth.

• Both automotive and industrial segments expected to deliver mid-single digit sequential growth in Q2.

• Long-term target model aims for mid-teens sales growth, gross margin above 55%, and EPS above $2.00.