Allegro MicroSystems Posts $229.2M Q3 Revenue Up 29%, Morgan Stanley Upgrades

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Allegro MicroSystems delivered $229.2 million in fiscal 3Q26 revenue, a 28.8% year-over-year increase that beat estimates by $8.34 million. Diluted EPS of $0.15 more than doubled the prior year’s $0.07 and prompted Morgan Stanley to upgrade the stock to Overweight from Equal Weight.

1. Q3 Financial Results

Allegro reported fiscal 3Q26 revenue of $229.2 million, up 28.8% year-over-year and beating consensus by $8.34 million. Diluted EPS reached $0.15 versus $0.07 in the year-ago quarter, outstripping analyst forecasts by $0.01 per share.

2. Product Portfolio and Market Position

The fabless semiconductor firm designs sensor ICs and analog power ICs serving electric vehicles, automotive driver-assistance systems, industrial automation, green energy and data center markets. Its offering encompasses roughly 1,500 discrete items supported by 1,900 patents, with over 10,000 customers including more than 50 automotive OEMs.

3. Analyst Upgrade and Outlook

Following the earnings beat, Morgan Stanley raised its rating on Allegro from Equal Weight to Overweight, citing strong demand in automotive and industrial end markets and the company’s robust product pipeline.

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