Allegro MicroSystems, the Manchester, New Hampshire power and sensing semiconductor company, opened fiscal 2027 with its sixth consecutive quarter of year-over-year sales growth. First quarter fiscal 2027 net sales reached $259.2 million for the thirteen weeks ended June 26, 2026, up 27% from the $203.4 million recorded in the year-ago quarter and up roughly 7% sequentially from the $243.2 million printed in the fiscal fourth quarter. The quarter marks the clearest confirmation yet that the company's data center strategy, which management has been building for over two years, has moved from narrative to a measurable revenue driver: data center reached a record 17% of total sales in the period, and Industrial and Other net sales climbed 59% year over year to $93.9 million, far outpacing the 15% advance in the Automotive segment to $165.3 million.
The earnings recovery is now visible across both the GAAP and non-GAAP income statement. GAAP diluted earnings per share improved to $0.08 from a $0.07 loss per share a year earlier, while non-GAAP diluted EPS more than doubled to $0.23, the fifth consecutive quarter of non-GAAP EPS growth. Adjusted EBITDA, the company's preferred cash-margin proxy, rose to $62.0 million, a 23.9% margin against 16.4% a year ago. For a company that only four quarters ago was printing modest GAAP losses while digesting restructuring charges, the operating leverage now flowing through as volumes scale is the single most important development in this report. The thesis is that Allegro sits at the intersection of three secular build-outs - automotive electrification, artificial intelligence data center power and cooling, and factory automation - and that the data center leg, effectively a new market for a company historically known as a magnetic-sensor auto supplier, is what resets the growth algorithm.
The load-bearing risk remains the concentrated ownership and governance structure. Sanken Electric, the Japanese power-semis group, still holds approximately 32.1% of Allegro's common stock and is treated as a related party, and the company's 10.2% equity stake in Polar Semiconductor, a fab it co-controls with Sanken, casts a recurring loss and a growing procurement relationship across the income statement and cash flow. The falsifiable clock for the whole story is the next two quarters: if the data center double-digit share of sales holds and Industrial and Other keeps growing at the pace of the first quarter, the re-rating case is intact; if that leg stalls while automotive flattens, the stock's premium multiple has further to compress.