Revenue growth rebounded to 26.1% in 2026Q4, yet structural margin pressure remains evident as operating margins languish at 7.2% due to elevated R&D spending.
| Sales/Revenue | 890.1M | 725.01M | 1.05B | 973.65M | 768.67M | 591.21M | 650.09M | 724.31M |
| Revenue Growth % | 22.77% | -30.91% | 7.78% | 26.67% | 30.02% | -9.06% | -10.25% | - |
| Cost of Goods Sold | 477.45M | 403.48M | 474.84M | 427.57M | 361.21M | 312.31M | 388.81M | 404.49M |
| COGS % of Revenue | 53.64% | 55.65% | 45.25% | 43.91% | 46.99% | 52.83% | 59.81% | 55.84% |
| Gross Profit | 412.64M | 321.53M | 574.53M | 546.08M | 407.46M | 278.9M | 261.28M | 319.82M |
| Gross Margin % | 46.36% | 44.35% | 54.75% | 56.09% | 53.01% | 47.17% | 40.19% | 44.16% |
| Gross Profit Growth % | 28.34% | -44.04% | 5.21% | 34.02% | 46.09% | 6.75% | -18.31% | - |
| Operating Expenses | 369.96M | 341.33M | 378.29M | 342.77M | 272.81M | 266.74M | 208.45M | 219.82M |
| OpEx % of Revenue | 41.56% | 47.08% | 36.05% | 35.2% | 35.49% | 45.12% | 32.06% | 30.35% |
| Selling, General & Admin | 171.29M | 161.68M | 188.43M | 194.72M | 150.94M | 153.48M | 106.4M | 112.24M |
| SG&A % of Revenue | 19.24% | 22.3% | 17.96% | 20% | 19.64% | 25.96% | 16.37% | 15.5% |
| Research & Development | 198.66M | 179.65M | 176.64M | 150.85M | 121.87M | 108.65M | 102.05M | 107.58M |
| R&D % of Revenue | 22.32% | 24.78% | 16.83% | 15.49% | 15.86% | 18.38% | 15.7% | 14.85% |
| Other Operating Expenses | 0 | 0 | 13.22M | -2.8M | 0 | 4.62M | 0 | 0 |
| Operating Income | 42.69M | -19.8M | 196.24M | 203.31M | 136.65M | 12.16M | 52.83M | 100M |
| Operating Margin % | 4.8% | -2.73% | 18.7% | 20.88% | 17.78% | 2.06% | 8.13% | 13.81% |
| Operating Income Growth % | 315.58% | -110.09% | -3.47% | 48.78% | 1023.95% | -76.99% | -47.17% | - |
| EBITDA | 110.28M | 44.7M | 267.63M | 254.12M | 185.18M | 60.47M | 116.88M | 159.95M |
| EBITDA Margin % | 12.39% | 6.17% | 25.5% | 26.1% | 24.09% | 10.23% | 17.98% | 22.08% |
| EBITDA Growth % | 146.72% | -83.3% | 5.32% | 37.23% | 206.25% | -48.27% | -26.93% | - |
| D&A (Non-Cash Add-back) | 67.59M | 64.5M | 71.38M | 50.81M | 48.53M | 48.31M | 64.05M | 59.95M |
| EBIT | 42.69M | -55.33M | 205.56M | 213.68M | 143.25M | 2.38M | 53.39M | 100.65M |
| Net Interest Income | -33.39M | -28.84M | -7.62M | -612K | -1.06M | -2.6M | -110K | -1.21M |
| Interest Income | 0 | 1.52M | 3.14M | 1.72M | 1.44M | 1.23M | 0 | 0 |
| Interest Expense | 33.39M | 30.37M | 10.76M | 2.34M | 2.5M | 3.83M | 110K | 1.21M |
| Other Income/Expense | -57.59M | -65.89M | -1.45M | 8.04M | 4.1M | -13.61M | 450K | -557K |
| Pretax Income | -14.9M | -85.7M | 194.8M | 211.35M | 140.75M | -1.45M | 53.28M | 99.44M |
| Pretax Margin % | -1.67% | -11.82% | 18.56% | 21.71% | 18.31% | -0.25% | 8.2% | 13.73% |
| Income Tax | -248K | -12.93M | 41.91M | 23.85M | 21.19M | -19.55M | 16.17M | 14.6M |
| Effective Tax Rate % | 1.66% | 15.09% | 21.51% | 11.29% | 15.06% | 1347.48% | 30.36% | 14.68% |
| Net Income | -14.9M | -73.01M | 152.7M | 187.36M | 119.41M | 17.95M | 36.97M | 84.72M |
| Net Margin % | -1.67% | -10.07% | 14.55% | 19.24% | 15.53% | 3.04% | 5.69% | 11.7% |
| Net Income Growth % | 79.6% | -147.81% | -18.5% | 56.91% | 565.11% | -51.44% | -56.36% | - |
| Net Income (Continuing) | -14.65M | -72.76M | 152.89M | 187.49M | 119.56M | 18.1M | 37.1M | 84.84M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.7M | 1.54M | 1.28M | 1.19M | 1.16M | 1.12M | 950K | 814K |
| EPS (Diluted) | -0.08 | -0.39 | 0.78 | 0.97 | 0.62 | 0.09 | 0.20 | 0.45 |
| EPS Growth % | 79.36% | -150% | -19.59% | 56.45% | 554.7% | -52.65% | -55.56% | - |
| EPS (Basic) | -0.08 | -0.39 | 0.79 | 0.98 | 0.63 | 0.09 | 0.20 | 0.45 |
| Diluted Shares Outstanding | 185.31M | 187.71M | 194.67M | 193.69M | 191.81M | 189.59M | 189.43M | 187.75M |
| Basic Shares Outstanding | 185.31M | 187.71M | 192.57M | 191.2M | 189.75M | 189.59M | 189.43M | 187.75M |
| Dividend Payout Ratio | - | - | - | - | - | 2228.04% | - | - |
Automotive cyclicality and margins
According to the latest quarterly data, Allegro's revenue growth has rebounded to 26.1% in 2026Q4, marking a significant recovery from the contractionary periods observed throughout 2025, though the durability of this expansion remains tethered to the highly cyclical automotive production schedules and EV adoption rates.
The recent acceleration in top-line performance suggests that the company is successfully navigating the inventory correction phase that plagued the previous fiscal year. However, investors should monitor whether this growth is driven by sustainable design-win momentum or merely a temporary replenishment of channel inventory levels.
As reported in financial statements, Allegro's gross margin has stabilized near 47.1% in 2026Q4, yet this remains well below the levels seen in 2024, suggesting that the company's fab-lite model faces ongoing pressure from third-party foundry costs and competitive pricing dynamics in the automotive sector.
The inability to consistently reclaim gross margins above the 50% threshold indicates that the company may lack the pricing power necessary to fully offset rising input costs. This margin profile warrants further investigation into whether the current product mix is shifting toward lower-margin legacy sensors.
Based on the provided income statement data, operating income has struggled to scale proportionally with revenue, as evidenced by a modest 7.2% operating margin in 2026Q4, which appears heavily burdened by sustained high R&D expenditures required to maintain a competitive edge in magnetic sensing.
The company's operating leverage is currently muted, as the fixed costs associated with R&D and SG&A continue to absorb a significant portion of gross profit. This suggests that management is prioritizing long-term technological positioning over immediate bottom-line profitability, which may be a risky strategy in a downturn.
Analysis of the income statement reveals that Allegro's net income remains inconsistent, with a reported loss of $16.5 million in 2026Q4, highlighting that non-operating items and potential integration costs from recent acquisitions are significantly obscuring the underlying operational health of the core semiconductor business.
The persistent gap between revenue growth and net profitability suggests that investors should look past headline EPS to understand the impact of stock-based compensation and acquisition-related charges. The recurring nature of these losses warrants caution regarding the company's ability to generate sustainable shareholder value in the near term.
Quick answers to the most common questions about buying ALGM stock.
For fiscal year 2026, Allegro MicroSystems, Inc. (ALGM) reported total revenue of $890.1M. This represents a 22.9% increase compared to $724.3M in 2019.
Allegro MicroSystems, Inc. (ALGM) reported a net loss of $14.9M for the fiscal year ending 2026.
Allegro MicroSystems, Inc. (ALGM) reported an operating income of $42.7M, resulting in an operating profit margin of 4.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Allegro MicroSystems, Inc. (ALGM) generated $412.6M in gross profit for the year, representing a gross profit margin of 46.4%. This demonstrates the company's core pricing power and production efficiency.