Allegro Microsystems, Inc. ("Allegro") has reported its financial results for the third quarter ending December 26, 2025. The company's sales increased by 29% year-over-year and 7% quarter-over-quarter to $229 million. Automotive sales grew by 28% year-over-year, including a 46% increase in e-mobility, while industrial sales saw a robust growth of 31% year-over-year.
The company's third quarter financial highlights show significant growth in net sales, with automotive sales reaching $164,543 thousand and industrial and other sales at $64,667 thousand, totaling $229,210 thousand. The non-GAAP gross margin increased to 49.9%, up from 49.1% in the same period last year. Additionally, the non-GAAP operating margin increased to 15.4%, up from 10.8% in the same period last year. Non-GAAP diluted earnings per share more than doubled year-over-year to $0.15, up from $0.07 in the same period last year.
Looking ahead, for the fourth quarter of fiscal year 2026 ending March 27, 2026, Allegro forecasts total net sales to be in the range of $230 million to $240 million, implying a 22% year-over-year growth at the midpoint of this range. The company also expects non-GAAP gross margin to be between 49% and 51% and non-GAAP diluted earnings per share to be between $0.14 and $0.18.
Allegro's CFO, Derek P. D'Antilio, noted the company's recent repricing of its term loan, resulting in a reduction in annualized interest expense, reflecting the lenders' confidence in the company's business model and financial discipline.
Allegro is set to hold a webcast on January 29, 2026, where the President and CEO, Michael C. Doogue, and the CFO, Derek P. D'Antilio, will discuss the company’s business and financial results.
Allegro Microsystems, Inc. specializes in leveraging its expertise in magnetic sensing and power ICs to drive automotive, clean energy, and industrial automation solutions forward. Today the company's shares have moved 2.02% to a price of $33.35. Check out the company's full 8-K submission here.
