Allegro MicroSystems FY 2026 earnings snapshot

Allegro MicroSystems (ALGM) closed FY 2026 with fourth quarter revenue of US$243.2 million and a basic EPS loss of US$0.09, as investors weigh the latest numbers against a share price of US$47.93. The company reported revenue of US$192.8 million in Q4 FY 2025 and US$243.2 million in Q4 FY 2026, while basic EPS moved from a loss of US$0.08 to a loss of US$0.09 over the same period. This invites a closer look at how efficiently additional sales are flowing through to the bottom line and what that indicates for margins.

See our full analysis for Allegro MicroSystems.

With the headline figures reported, the next step is to compare these results with the widely followed growth and profitability narratives to see which perspectives the numbers support and which they challenge.

TTM revenue near US$890 million while bottom line stays in loss

• On a trailing 12 month basis to Q4 FY 2026, Allegro MicroSystems generated about US$890.1 million of revenue and recorded a net loss of about US$14.9 million.
• What stands out for a more bullish view is that higher revenue forecasts of about 13.5% a year and expectations for earnings to turn positive sit against this recent loss profile. Any investor leaning positive is effectively backing that this level of sales can eventually support profitability after several years of losses that have grown by about 28.7% a year.

Quarterly swing from profit to loss in FY 2026

• Within FY 2026 the company moved from a Q3 net income of US$8.3 million and basic EPS of US$0.04 to a Q4 net loss of US$16.5 million and a basic EPS loss of US$0.09, with revenue rising from US$229.2 million to US$243.2 million over the same stretch.
• Skeptics point to this pattern as backing a more bearish stance, because higher quarterly revenue alongside a shift from profit to loss suggests costs or other items absorbed more than the extra US$14 million of sales. This sits next to a trailing 12 month loss of about US$14.9 million even as analysts project roughly 69.03% yearly earnings growth and a move to profitability.

Premium valuation against peers and DCF fair value

• The stock trades at about 10x P/S versus a cited US Semiconductor industry average of 8.7x and a peer average of 4.4x, while the current share price of US$47.93 also sits above the stated DCF fair value of about US$26.40.
• For a more bearish narrative, critics highlight that paying a premium multiple and a price above DCF fair value for a company that is currently loss making on a trailing 12 month view means a lot depends on those earnings and revenue growth forecasts being met. The numbers here heavily support the idea that expectations are already built into the valuation rather than still being a purely underappreciated story.

Curious how other investors are connecting these growth forecasts, current losses, and premium multiples to a longer term story for Allegro MicroSystems? Curious how numbers become stories that shape markets? Explore Community Narratives.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Allegro MicroSystems's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Seen enough to sense how divided the picture can look here? Act quickly, review the full data set, and weigh whether those potential upsides matter to you by checking the 1 key reward.

Explore Alternatives

Allegro MicroSystems combines trailing 12 month losses with a premium P/S multiple and a share price that sits above the stated DCF fair value.

If you are uneasy about paying up for a stock where profitability is not yet in place, use the 51 high quality undervalued stocks to quickly hunt for ideas that appear more conservatively priced and supported by stronger valuation signals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.