Allegro Microsystems Q2 2027: Data Center Demand Drives 79% Industrial Revenue Growth
As seen on the 24/7 Wall St. homepage on October 29, 2026.
Data center demand just turned Allegro into a growth story beyond cars: Industrial and Other sales jumped 79% year over year to a record $104.39 million. Revenue and EPS topped expectations, and December quarter guidance implies 80% EPS growth at the midpoint.
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Allegro Microsystems posted adjusted EPS of $0.26 for its fiscal second quarter of 2027, beating expectations, with net sales rising 29% year over year. It was the seventh consecutive quarter of sequential sales growth, pointing to durable momentum.
Industrial and Other revenue hit a segment record of $104.39 million, up 79% from a year earlier. Management credited record data center sales, which broadens Allegro beyond its automotive chip base and reduces the cyclical risk investors have historically priced into the stock.
Profitability improved alongside the top-line growth, with non-GAAP operating margin widening to 20.6% from 13.9%. Automotive revenue rose 11% as well, so both major segments are growing simultaneously, amplifying the margin leverage.
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CEO Mike Doogue noted that quarterly design-win performance reached its highest level since the company's 2020 IPO, up nearly 40% year over year, with bookings rising for an eighth consecutive quarter. Those leading indicators underpin management's stated confidence in exceeding its target model of mid-teens annual sales growth.
For fiscal Q3 2027, Allegro guided non-GAAP diluted EPS of $0.25 to $0.29, a midpoint implying 80% year-over-year growth. Free cash flow more than doubled year over year, adding balance-sheet credibility to those forward targets.
Mentioned: ALGM