Allegro MicroSystems is expected to report Q3 2026 revenue of $270.82 million and adjusted EPS of $0.24, with the stock currently trading at $33.91 compared to a $51.50 average analyst price target.
Investors are primarily focused on the pace of inventory normalization within the automotive segment and the realization of record design wins in e-Mobility.
Recent performance has been bolstered by record data center sales, which now account for 17% of total revenue, reflecting a successful expansion into high-growth AI infrastructure.
Management's guidance for the fiscal second half will be critical to confirming a sustained expansion in gross margins toward their 55% long-term target.