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- **Revenue Beat**: Q2 $214M (+24% YoY), driven by 8% QoQ automotive growth.
- **Strategic Wins**: ADAS, xEV, and robotics design wins accelerate.
- **Data Center Surge**: 10MHz sensors and 800V gate drivers gain traction.
- **Gross Margin Recovery**: 49.6% Q2, targeting 58% long-term.
- **Q3 Outlook**: $215-225M, $0.12-0.16 EPS, stable pricing environment.

**【CEO Summary Section】**
- Q2 revenue of $214M exceeded midpoint guidance, driven by 8% sequential growth in automotive and 21% YoY in e-mobility.
- Key wins in ADAS (steering systems) and xEV (tractionverter systems) with Chinese and North American OEMs.
- Data center momentum from 10MHz TMR current sensors and high-voltage gate drivers for 48V/800V power supplies.
- Robotics growth with design wins in quadruped and humanoid systems.

**【CFO Financial Commentary】**
- Gross margin improved to 49.6% (up 140bps QoQ), EPS of $0.13 vs. $0.08 YoY.
- Q3 guidance: $215-225M revenue (24% YoY), 49-51% gross margin, $0.12-0.16 EPS.
- Inventory burn continues in consumer/industrial, but automotive demand strong.
- 2026 capex ~$6M (3% of sales), targeting 58% long-term gross margin.

**【Q&A Key Highlights】**
- **Automotive Strength**: 8% QoQ growth in automotive, 21% YoY in e-mobility.
- **Data Center Expansion**: 7%+ revenue from cooling/power, potential $425M/rack content.
- **Inventory Dynamics**: Distributor burn of $5M, but end-customer restocking possible.
- **Pricing Stability**: Competitor price hikes signal stable environment.
- **Robotics Opportunity**: Design wins in advanced mobility systems.
- **Supply Chain**: Rare earth metal diversification underway.

Allegro MicroSystems, Inc. (ALGM) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ALGM

ALGM fundamentals

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