Allegro MicroSystems (ALGM) Q2 2027 earnings summary

Executive summary

• Q2 FY27 net sales rose 29.2% YoY to a record $276.9M, marking the seventh consecutive quarter of sequential growth; non-GAAP EPS was $0.26.

• Design wins rose nearly 40% YoY to a quarterly record, and bookings increased for an eighth consecutive quarter amid a robust backlog.

• Strengthening demand supported confidence in exceeding the mid-teens annual sales growth target model.

Financial highlights

• Q2 net sales were $276.9M; GAAP net income was $23.3M versus $6.6M YoY, and non-GAAP net income was $48.1M.

• GAAP diluted EPS was $0.12 versus $0.03 YoY; non-GAAP diluted EPS was $0.26 versus $0.13.

• Non-GAAP operating income was $57.0M, with a 20.6% operating margin; GAAP operating income was $35.4M.

• Operating cash flow was $36.8M; non-GAAP free cash flow was $30.5M, or 11.0% of sales.

Outlook and guidance

• Q3 FY27 sales guidance is $278M–$288M; midpoint implies 23% YoY growth and 2% sequential growth.

• Q3 non-GAAP gross margin is guided to 51.5%–52.5%, operating expenses to $87M ±$1M, and non-GAAP EPS to $0.25–$0.29; EPS midpoint implies 80% YoY growth.

• FY27 data-center sales remain on track to more than double; automotive growth is expected to continue, with potential to exceed the mid-teens annual sales growth target.

• 3–5 year targets include mid-teens annual sales growth, non-GAAP gross margin above 55%, operating margin above 32%, EPS above $2.00, and FCF margin of 20%–25%.