Allegro MicroSystems Aims Quadruple EPS to $2 on 20%+ Sales Growth
Allegro MicroSystems outlined a long-term model targeting mid-teens annual revenue growth and gross margins above 55%, aiming to more than double revenue and quadruple EPS to above $2. Management said fiscal 2026 sales will exceed 20% growth with a fourth-quarter exit at roughly 50% gross margin and 16% operating margin.
1. Long-Term Financial Model
Allegro unveiled a model targeting mid-teens annual revenue CAGR and gross margins above 55%, projecting revenue to more than double and EPS to exceed $2 over the multi-year plan.
2. Fiscal 2026 Performance
Management said sales are on pace for over 20% year-over-year growth in fiscal 2026, with fourth-quarter gross margin exiting at approximately 50% and operating margin around 16%.
3. Market and Technology Focus
The company is prioritizing automotive xEV and ADAS and industrial data center and robotics markets, leveraging TMR sensors, isolated gate drivers, and 48-volt architectures to drive content per vehicle and share gains.
4. Operational and Margin Initiatives
Executives detailed a go-to-market reorganization, China-for-China supply chain strategy and margin expansion via operating leverage, factory efficiencies, and higher-margin product mix.