Key Highlights

  • Net sales reached $277 million in fiscal Q2 2027, a 29% increase year-over-year, marking the seventh consecutive quarter of sequential growth.
  • GAAP diluted EPS came in at $0.12, up from $0.03 in the year-ago period; non-GAAP EPS doubled to $0.26.
  • Industrial and Other segment Revenue hit a record $104.4 million, while Data Center sales also reached a new high.
  • Design-win performance for the quarter was the highest since the company's 2020 IPO, up nearly 40% year-over-year.

Allegro MicroSystems, Inc. (NASDAQ:ALGM), a provider of power and sensing semiconductor solutions, reported fiscal second-quarter 2027 net sales of $276.9 million, representing a 29% increase from $214.3 million in the comparable period a year earlier. The result extended the company's run of sequential quarterly growth to seven consecutive periods, driven by accelerating Demand across its Automotive and Industrial end markets, with Data Center sales reaching a new record.

Revenue Growth Across Both Key Segments

Automotive net sales for the quarter totaled $172.5 million, up from $155.8 million in the second quarter of fiscal 2026, reflecting continued demand for power and sensing content in electric vehicles and advanced driver-assistance systems. Industrial and Other revenues expanded more sharply, rising to $104.4 million from $58.4 million a year earlier, a gain of nearly 79%. The Data Center sub-segment within Industrial was the standout contributor, with management noting record quarterly revenue in that category.

For the six months ended September 25, 2026, total net sales reached $536.1 million, compared with $417.7 million in the same period of fiscal 2026, a 28.4% increase. Automotive contributed $337.8 million and Industrial and Other accounted for $198.3 million over the half-year period.

Earnings and Margins Improve Year-Over-Year

GAAP gross Margin expanded to 49.2% in fiscal Q2 2027, up from 46.3% in the year-ago quarter and 48.5% in the prior quarter. Operating Margin improved to 12.8% compared with 2.9% a year earlier. GAAP diluted Earnings per share were $0.12 for the quarter, a fourfold increase from $0.03 in fiscal Q2 2026. On a non-GAAP basis, gross margin came in at 51.5%, up from 49.6% a year prior, while non-GAAP EPS doubled to $0.26 from $0.13.

The company's CFO noted that on September 30, 2026, following the close of the second quarter, Allegro made an additional $25 million voluntary Debt repayment, reducing outstanding debt and reflecting management's confidence in the company's free Cash Flow trajectory.

Pipeline Indicators Point to Continued Momentum

Design-win performance during the quarter reached the highest level since Allegro's initial public offering in 2020, with the metric up nearly 40% compared with the same period a year earlier. Bookings increased for the eighth consecutive quarter. Management characterised the forward demand signals as significantly strengthened, citing a growing Backlog and expanding content per vehicle and per industrial unit. The combination of record design wins and a resilient booking trend provides visibility into the company's pipeline over coming quarters, with management expressing high confidence in a trajectory that exceeds its target model of mid-teens annual sales growth.

Allegro MicroSystems heads into the second half of its fiscal year with broadening revenue streams, improving profitability metrics and what the company describes as its most productive quarter for new design wins in its publicly listed history. The combination of record-level Industrial revenues, sustained Automotive demand, and a deepening bookings pipeline frames the company's near-term operating picture as one of measured but broad-based expansion across its target markets.