Allegro MicroSystems is expected to report Q2 2026 revenue of $251.7 million and adjusted EPS of $0.21, with the stock currently trading around $46.03, significantly below the $55.20 average analyst target. Investors are primarily focused on the growth of the Data Center segment, which reached a record 14% of total sales last quarter driven by surging AI power management demand.
The company is navigating a recovery in the automotive sector, specifically within xEV and ADAS platforms, as inventory levels in the industrial channel begin to normalize. Despite recent headwinds from chip sector volatility and geopolitical tariff concerns, analysts remain optimistic about Allegro’s margin expansion to the 50-51% range.