Allegro MicroSystems grew sales 29% to $277 million without sizing its data center revenue
Allegro's Q2 filing confirms the growth but never states the data center figure the market is paying for, and the stock had already moved 14% over two sessions before the numbers were public.
Richard Tang · 2 min read
Allegro MicroSystems−7.24% — Allegro MicroSystems, down 7.24 percent today reported a 29% sales jump, a record data center quarter and a 23% growth guide on October 29, but the filing never states what data center sales actually were 24. ALGM shares had already moved: an intraday gain of 9.8% on October 28 on the 800V data center product launch 2, and a 4.1% close at $35.37 that same day 4. The two moves compound to a 14% pre-print run 24.
The numbers behind the label are strong
Second-quarter sales rose 29% year over year to $277 million, GAAP EPS quadrupled to $0.12, and the company guided next quarter's sales up 23% at the midpoint, with non-GAAP EPS guided up 80% 1. Design wins rose nearly 40%, the best since its 2020 IPO, and bookings climbed for an eighth straight quarter 1.
Sales have climbed for seven straight quarters to a record $277 million
Data
| Net sales | |
|---|---|
| Q4 '24 | $177.87M |
| Q1 '25 | $192.82M |
| Q2 '25 | $203.41M |
| Q3 '25 | $214.29M |
| Q4 '25 | $229.21M |
| Q1 '26 | $243.19M |
| Q2 '26 | $259.24M |
| Q3 '26 | $277M |
The growth is almost entirely one line item
Industrial and Other, the reporting line that carries data center revenue, grew 79% to $104.4 million, up about $46 million 1. Automotive grew 11% to $172.5 million, up about $17 million 1. So roughly three-quarters of Allegro's growth came from the line whose fastest driver the release names only as data center, "which established a new record" 1.
Industrial and Other nearly doubled while Automotive grew 11%
- Automotive
- Industrial & Other
Data
| Automotive | Industrial & Other | |
|---|---|---|
| Q2 FY2026 | 155.8 | 58.4 |
| Q2 FY2027 | 172.5 | 104.4 |
The last public sizing is two quarters old
The most recent public sizing, from company disclosures before this print, put data center at 10% of fiscal 2026 sales and 14% of the fiscal fourth quarter 2. Nothing in today's release updates that. The market is re-rating an automotive sensor house as an AI power play on a figure last stated two quarters ago.
The bulls and the sellers are both on the record
Bulls can point to an analyst median price target of $55 against the $35.37 close, institutions adding stock including roughly $886 million from JPMorgan, and Rep 3. Gil Cisneros's purchase of up to $15,000 3. Bears hold a trailing P/E of 471.6x against a 41.8x five-year median, GuruFocus calling the stock overvalued, and seven insider sales with zero purchases, including CEO Mike Doogue's $1.4 million sale 4.
The next catalyst is disclosure, not demand
When Allegro quantifies data center revenue, the AI re-rating either gets a number or loses its label. Until then, the premium rests on momentum and design wins, not on a figure anyone can check.
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