Allegro MicroSystems posts Q2 FY27 earnings beat but shares tumble
Allegro MicroSystems reported fiscal Q2 2027 net sales of $277 million, up 29% year‑over‑year, and non‑GAAP earnings per share of $0.26, topping the top of its guidance range. Gross margin expanded to 51.5% and free cash flow reached $31 million. Despite the beat, the stock fell 7%‑11% after the company issued Q3 guidance of $278‑$288 million revenue, implying slower growth, and highlighted capacity constraints in industrial and data‑center segments.
Why it matters
The share decline shows investors are pricing in a slower growth trajectory despite the strong quarter, which could pressure the stock’s valuation in the near term. The Q3 guidance narrows the upside for revenue and EPS, setting expectations for modest sequential growth.
Key facts
- 1Net sales were $277 million, a 29% increase year‑over‑year. investing.com
- 2Non‑GAAP EPS was $0.26, matching the top of the company’s forecast. investing.com
- 3Gross margin was 51.5%, up 40 basis points sequentially. finance.yahoo.com
- 4Free cash flow for the quarter was $31 million. investing.com
- 5Q3 guidance calls for revenue of $278 million‑$288 million, representing 23% year‑over‑year growth. finance.yahoo.com
- 6Q3 gross margin guidance is 51.5%‑52.5% and EPS guidance is $0.25‑$0.29. finance.yahoo.com
Open questions
- EPS figures differ: non‑GAAP EPS $0.26 versus GAAP diluted EPS $0.12.
Summary written by AlphAI AI Desk from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.