Allegro MicroSystems reported fiscal third‑quarter 2026 revenue of $229.21 million, a 28% year‑over‑year increase that surpassed the consensus estimate of $225.1 million. Non‑GAAP earnings per share rose to $0.15, beating the $0.146 consensus by $0.004, or roughly 3% of the expected figure. The earnings beat was driven by disciplined cost management and a favorable product mix that lifted gross margin to 49.9%, up from 49.1% a year earlier.
Automotive sales grew 28% to $107.5 million, with e‑Mobility sales surging 46% to $45.3 million, reflecting strong demand for electrified power‑train solutions. Industrial sales increased 31% to $66.8 million, led by a record‑quarter performance in the Data Center segment, which benefited from heightened demand for power‑efficient server components.
Gross margin expansion to 49.9% was largely attributable to a higher mix of high‑margin automotive and data‑center contracts, combined with effective pricing power that offset modest increases in component costs. The company’s operating leverage improved as revenue grew while fixed manufacturing and R&D expenses remained stable, allowing margin growth to translate into a $0.15 EPS beat.
Backlog rose to $1.12 billion, up from $1.02 billion a year earlier, indicating strong future order flow. Management guided fiscal fourth‑quarter net sales to $230 million–$240 million, a range that exceeds the consensus estimate of $227 million and signals confidence in continued double‑digit growth.
CEO Mike Doogue highlighted the robust automotive and data‑center momentum, noting that the company’s design wins in electrification and server markets are driving the record quarter. CFO Derek D'Antilio added that the recent repricing of the term loan has reduced annualized interest expense, improving cash‑flow flexibility. The company’s outlook remains positive, with guidance that reflects expectations of sustained demand in its high‑growth segments.
Investors responded favorably to the results, citing the earnings beat, margin expansion, and optimistic guidance as evidence of strong execution and a solid trajectory for the remainder of the fiscal year.
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