Allegro Sales Reach $276.884 Million, Up 29% in Fiscal Second Quarter
Key Facts
Allegro MicroSystems reported on October 29 results for the second quarter of fiscal 2027, which ended on September 25, 2026, with net sales of $276.884 million. That was a 29% year-over-year increase from $214.294 million in the same period of the prior fiscal year. The figures place the period in its proper context as a fiscal second quarter, after StockStory’s coverage described it as the third quarter of the calendar year. The company said sales growth across the automotive and industrial markets drove the performance, while data center sales reached a new record. Growth across both markets, alongside the data center record, gives a clearer picture of the sources of revenue growth in the quarter.
Automotive sales were $172.492 million in the quarter ended September 25, up from $155.845 million in the comparable period ended September 26, 2025. Industrial and other sales rose to $104.392 million, compared with $58.449 million a year earlier. The comparison shows that the increase was not limited to automotive; industrial and other sales also rose between the two periods. Management linked the performance to broad year-over-year growth in both markets and said data centers led that performance, reaching a record. The quarter’s results thus combined higher automotive sales with a broader growth base in industrial and other activities, according to the figures reported by the company.
Profit margins reported under U.S. generally accepted accounting principles improved: gross margin was 49.2% in the second quarter of fiscal 2027, compared with 46.3% in the corresponding quarter of fiscal 2026. Operating margin was 12.8%, compared with 2.9% in the corresponding period. On the sales trajectory, the chief executive said the company had delivered its seventh consecutive quarter of sequential growth. It also recorded its highest quarterly design-win performance since its initial public offering in 2020, up approximately 40% year over year. He added that bookings had increased for the eighth consecutive quarter, demand signals management cited alongside sales and margin results.
In a separate update on inventory levels, StockStory said days inventory outstanding fell to 117 days in the second quarter of fiscal 2027, from 128 days in the prior quarter. That figure is a quarter-over-quarter comparison, unlike the year-over-year sales and segment growth reported by the company. On financing, Allegro said it voluntarily repaid an additional $25 million of debt on September 30, after the close of the second quarter. The chief financial officer said the repayment reflected the strength of the balance sheet and the company’s confidence in generating expected free cash flow. The repayment came after the end of the fiscal period, so the company reported it as a post-quarter development.
Allegro expects net sales of between $278 million and $288 million in the third quarter of fiscal 2027, ending December 25, 2026. The company said the midpoint of that range implies sales growth of 23% year over year. It also forecast non-GAAP gross margin of between 51.5% and 52.5%, operating expenses of approximately $87 million, plus or minus $1 million, and non-GAAP diluted earnings per share of between $0.25 and $0.29. It said it had not provided a reconciliation of these forecasts with the corresponding U.S. GAAP measures because estimating all reconciliation items would require unreasonable effort; it scheduled a webcast to discuss results and business on October 29, 2026, at 8:30 a.m. Eastern Time.