Earnings Call Intelligence Subscribe
Home › Call Sheets › ALGM › Q3'26
Call sheet · Q3'26

Allegro MicroSystems (ALGM)

Q3'26 earnings call · held 2026-01-29 · compared with the Q2'26 call · management-credibility review
10/12
Disclosure score
2 medium, 6 low flags
Financial quality
Bottom line
The sleeper story is current sensors becoming a meaningful growth driver in data center, contributing to record 10% penetration with better margins than fan drivers, but management won't quantify the mix shift. The obvious automotive recovery headline masks the reality that they're still shipping 20% below peak despite 'multi-quarter bookings highs,' suggesting either inventory overhang is worse than disclosed or end demand isn't matching the design win enthusiasm. The binding constraint is geographic mix degradation, with China hitting 30% of sales and pressuring margins despite strong volume growth. Most revealing quote: 'China was 30% of our sales in the third quarter. And so that drives the gross margins down a bit.' My view changes if they quantify the current sensor vs fan driver split in data center or provide China-specific margin disclosure at the February 18 Analyst Day.

The 30-second version

  • Current sensors are quietly becoming the sleeper growth driver in data center
  • Automotive recovery stalled at 20% below peak despite strong design wins
  • Geographic mix is becoming a margin headwind they're not addressing

What changed this quarter

MetricQ2'26Q3'26Change
Revenue$214M (+14% YoY)$229M (+29% YoY)+1,500 bps YoY acceleration
Non-GAAP EPS$0.13 (+63% YoY)$0.15 (+114% YoY)+5,100 bps EPS growth acceleration
Gross Margin49.6% (+460 bps YoY)49.9% (+490 bps YoY)+30 bps sequential, but 10 bps below midpoint
Automotive Revenue+8% QoQ, +12% YoY+6% QoQ, +28% YoY+1,600 bps YoY acceleration despite QoQ deceleration
E-Mobility Revenue+21% YoY+46% YoY+2,500 bps acceleration in e-mobility
Industrial Revenue-1% QoQ, +23% YoY+11% QoQ, +31% YoYSharp sequential acceleration
Data Center as % of Sales8% (record level)10% (+31% QoQ)+200 bps penetration in one quarter
Distribution Sales+22% QoQ, +23% YoY+11% QoQ, +39% YoYSequential deceleration but YoY acceleration
Power Products Revenue+13% QoQ, +42% YoY+9% QoQ, +43% YoYSequential deceleration to single digits
Magnetic Sensor Revenue+1% QoQ, +2% YoY+5% QoQ, +21% YoY+1,900 bps YoY acceleration

Accountability tracked

8 new promises made4 narrative shifts flagged7 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Read the full ALGM Q3'26 report Subscribe
About Research ↗Call SheetsCredibility IndexMissed PromisesScreens13F BooksData & InstitutionalPrivacyTermsSubscribe
This is a free preview. The full write-up and promise ledger are published to subscribers on Substack.
Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

Follow what management promises next

Get free previews of our earnings-call research: the key changes, management scores, and questions worth investigating. Subscribe for full call sheets and deeper analysis.

Subscriptions are managed by Substack. If the form does not load, subscribe directly. Or follow the RSS feed.