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Q1 2026

no prior guidance for Q1 2026

no detailed guidance provided "

no current guidance

E-Mobility Design Wins

In Q1, executives noted that more than three-quarters of the automotive design pipeline was tied to e-mobility. " " In Q2 and Q3, design wins in e-mobility were highlighted—with over 70%-75% of automotive wins focused on this area despite temporary inventory issues. " "

In Q4, Allegro reported that over 70% of design wins were in strategic areas including e-mobility, with automotive sales returning to growth and e-mobility sales growing 16% sequentially. " "

Increasing momentum as robust sequential sales growth and strong design win narratives bolster sentiment in this strategically key area.

Industrial Design Wins

In Q2, design wins spanned Extreme Sense products for clean energy smart metering and TMR technology for medical applications, while Q3 noted multiple wins in power motor solutions and industrial applications such as data centers, robotics, and clean energy. " "

In Q4, design wins reached record levels in the industrial sector, with notable wins in robotics, automation, data center, clean energy, and medical markets across diverse applications. " " "

Consistent growth and diversification across sectors, demonstrating improved portfolio resilience and an expanding industrial footprint.

Gross Margin Pressure

Q1 earnings highlighted a 400 basis point decline due largely to underutilized capacity and less favorable mix, while Q2 and Q3 discussions focused on pricing resets, one‐time costs and inventory challenges contributing to margin pressure. " " " " "

In Q4, margin pressure persisted due to customer price adjustments, product mix issues, and under-absorption from static production levels despite rising sales; however, active initiatives such as restructuring and vendor negotiations were emphasized. " " "

Ongoing pressure moderated by proactive cost reduction efforts; sentiment is shifting toward optimism as operational improvement strategies are implemented.

Inventory Management

Across Q1 through Q3, the focus was on active inventory rebalancing, with efforts to reduce direct, distribution, and finished goods inventories while managing regional differences especially in China, North America, and Europe. " " "

In Q4, Allegro continued this trend by reducing finished goods by over 10% and reporting a 25% decline in customer inventories, signaling further progress toward supply chain normalization. " " "

Steady progress toward normalized inventory levels, although regional disparities remain; the ongoing drive to balance inventory is clearly positive.

Automotive Sector Dependency

Q1 revealed heavy automotive concentration (around 79% of sales) driven by inventory corrections, while Q2 and Q3 maintained this dependency with an emphasis on e-mobility growth despite some sequential declines. " " "

In Q4, automotive sales rebounded with an 8% sequential increase, and the company also reported a 9% sequential lift in industrial and other sales, indicating a subtle shift in revenue mix and reduced reliance on automotive alone. " " "

Diversification trend—while automotive remains significant, growth in industrial and other segments is reducing overall dependency.

R&D Investment and New Product Introductions

Q1 introduced major new products across high-voltage, sensor, and 48V portfolios, Q2 launched ExtremeSense TMR sensors following an acquisition, and Q3 saw a doubling of new product introductions with a focus on automotive and industrial applications. " " "

Q4 saw a strategic reprioritization of R&D spending within the existing budget envelope, with restructuring savings earmarked partly for R&D; new product introductions such as XtremeSense TMR current sensors and a family of high-voltage isolated gate drivers were emphasized. " " "

Consistent emphasis on innovation, with an increased focus on differentiated products fueled by strategic R&D investment and leveraging cost savings.

Manufacturing Localization in China

No mention in Q1; Q2 introduced plans to localize manufacturing in China through OSAT partnerships and initiating wafer qualification, while Q3 confirmed initial shipments from local OSAT partners as part of the “China-for-China” strategy. " " " "

In Q4, this initiative was expanded with a comprehensive China-for-China approach that includes additional product qualification, establishing various package types, and generating active customer design wins, with anticipated ramp-up later in the year. " "

Emerging and accelerating focus on localizing supply chain and production in China to better meet customer demand and improve margins, reflecting a strategic pivot.

Tariff Uncertainty and Pricing Pressure

Q1 and Q3 had little to no mention of tariffs, while Q2 briefly noted that pricing was stabilizing with incremental adjustments (around 2%) as competitive pressures normalized. "

In Q4, Allegro provided a detailed update clarifying that tariff impacts remain immaterial—thanks to production location and wafer sourcing strategies—and noted that pricing moves in automotive continue as expected with low single-digit adjustments and stabilized channel pricing. " " " "

Stabilization, with previous uncertainty now addressed; the focus has shifted to normal pricing adjustments and no significant tariff-driven disruptions.