Allegro MicroSystems (ALGM) Q1 2027 earnings summary

Executive summary

• Achieved sixth consecutive quarter of sequential sales growth, with Q1 FY27 sales of $259 million, up 27% year-over-year and above guidance.

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

• Bookings increased for the seventh consecutive quarter, with expanding backlog and robust design win momentum across all major end markets, including a 30% year-over-year increase in design wins.

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

• Significant design wins in China and North America, especially with large robotics customers.

Financial highlights

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

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

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

• Non-GAAP operating margin: 19.4%, up from 15.6% in Q4 and 11.1% in Q1 FY26.

• Adjusted EBITDA: $62.0 million (23.9% margin).

• Net income: $42 million (non-GAAP); GAAP net income: $15.9 million.

• Free cash flow: $14 million (5.4% of net sales); operating cash flow: $22 million.

Outlook and guidance

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

• Q2 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.

• Operating expenses expected at $84.5 million, plus or minus $1 million.