Allegro MicroSystems (NASDAQ:ALGM) Updates Q4 2026 Earnings Guidance

Allegro MicroSystems (NASDAQ:ALGM) issued an update on its fourth quarter 2026 earnings guidance on Friday morning. The company provided earnings per share (EPS) guidance of 0.140-0.18 for the period, compared to the consensus estimate of 0.150. The company issued revenue guidance of $230.0 million-$240.0 million, compared to the consensus revenue estimate of $231.0 million.

Allegro MicroSystems Price Performance

Shares of ALGM opened at $36.91 on Friday. Allegro MicroSystems has a fifty-two week low of $16.38 and a fifty-two week high of $39.89. The firm’s 50-day simple moving average is $29.28 and its two-hundred day simple moving average is $29.79. The stock has a market cap of $6.83 billion, a PE ratio of -461.38 and a beta of 1.61. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.48 and a current ratio of 3.65.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly earnings results on Thursday, January 29th. The company reported $0.15 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.01. The firm had revenue of $229.21 million for the quarter, compared to analysts’ expectations of $220.78 million. Allegro MicroSystems had a positive return on equity of 4.35% and a negative net margin of 1.57%.The business’s revenue for the quarter was up 28.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.07 EPS. Analysts anticipate that Allegro MicroSystems will post 0.01 earnings per share for the current fiscal year.

Analyst Ratings Changes

ALGM has been the topic of a number of recent research reports. TD Cowen increased their target price on Allegro MicroSystems from $38.00 to $45.00 and gave the stock a “buy” rating in a research note on Friday. Bank of America increased their price objective on shares of Allegro MicroSystems from $36.00 to $39.00 and gave the company a “buy” rating in a research report on Wednesday, January 21st. Wells Fargo & Company raised their price objective on shares of Allegro MicroSystems from $40.00 to $45.00 and gave the company an “overweight” rating in a research note on Friday. Wall Street Zen upgraded shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th. Finally, Morgan Stanley raised their price target on shares of Allegro MicroSystems from $35.00 to $45.00 and gave the company an “equal weight” rating in a research report on Friday. Nine investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $43.50.

Allegro MicroSystems News Roundup

Here are the key news stories impacting Allegro MicroSystems this week:

• Positive Sentiment: Q3 results beat expectations — Allegro reported $0.15 EPS (vs. $0.14 consensus) and $229.2M revenue (vs. ~$220.8M), with revenue up ~29% YoY; management provided revenue and EPS guidance that supported a bullish near‑term outlook. GlobeNewswire: Q3 Results
• Positive Sentiment: Multiple analyst price‑target raises — TD Cowen, Wells Fargo, Morgan Stanley and Jefferies raised targets (examples: TD Cowen and Wells Fargo to $45; Jefferies to $43), signaling institutional support and providing fresh upside narratives for traders. Benzinga: Analyst Coverage The Fly: TD Cowen Raise
• Positive Sentiment: Shares briefly rallied to multi‑year highs on the swing to profitability and the stronger sales outlook, reflecting momentum buying after the print. MSN: Stock Jumps
• Neutral Sentiment: Company guidance is roughly in line with consensus (Q4 EPS guide $0.140–$0.18; revenue $230–240M), so while supportive, it wasn’t an unambiguous upside surprise that would guarantee further multiple expansion. MSN: Guidance Details
• Neutral Sentiment: Investors can review the company presentation and full earnings call transcript for detail on product mix and end‑market exposure (automotive still dominant; data center exposure cited as a growth catalyst). Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Valuation and earnings‑quality concerns — a Seeking Alpha piece warns Allegro is “pricing in green shoots” with a demanding multiple (~8x sales) and that adjusted EPS is inflated by significant stock‑based compensation, suggesting true cash earnings are lower. That note likely prompted some profit‑taking. Seeking Alpha: Valuation Caution

Hedge Funds Weigh In On Allegro MicroSystems

Several hedge funds and other institutional investors have recently modified their holdings of the company. NewEdge Advisors LLC grew its holdings in shares of Allegro MicroSystems by 12,315.0% in the third quarter. NewEdge Advisors LLC now owns 2,483 shares of the company’s stock worth $73,000 after acquiring an additional 2,463 shares during the period. Centaurus Financial Inc. purchased a new position in Allegro MicroSystems in the third quarter worth about $161,000. Canada Pension Plan Investment Board grew its stake in shares of Allegro MicroSystems by 154.2% during the 2nd quarter. Canada Pension Plan Investment Board now owns 6,100 shares of the company’s stock valued at $209,000 after purchasing an additional 3,700 shares during the period. Brooklyn Investment Group increased its position in shares of Allegro MicroSystems by 321.6% during the 3rd quarter. Brooklyn Investment Group now owns 7,335 shares of the company’s stock valued at $214,000 after purchasing an additional 5,595 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV purchased a new stake in shares of Allegro MicroSystems during the 3rd quarter valued at about $249,000. 56.45% of the stock is owned by institutional investors.

About Allegro MicroSystems

Allegro MicroSystems, Inc (NASDAQ: ALGM) is a leading designer and manufacturer of high-performance power and sensing integrated circuits. The company focuses on semiconductor solutions that enable precise motion control, energy-efficient power management and robust sensing in a wide range of applications. Allegro’s product portfolio includes Hall-effect magnetic sensors, current and position sensing ICs, motor driver and controller devices, and power management components.

Allegro MicroSystems serves major automotive, industrial and consumer markets worldwide.