Allegro MicroSystems, Inc. (ALGM) saw its stock price surge 9.34% in pre-market trading on Thursday, following the release of better-than-expected fourth-quarter results and an optimistic outlook for the coming quarter. The semiconductor solutions provider demonstrated resilience and growth potential, despite challenging market conditions.

For the fourth quarter ended March 28, 2025, Allegro reported adjusted earnings per share of $0.06, surpassing analysts' estimates of $0.05. Revenue came in at $192.82 million, exceeding expectations of $185.28 million. The company's performance showed signs of recovery, with sales increasing 8% sequentially to $193 million.

Mike Doogue, President and CEO of Allegro, commented on the results, stating, "During the fourth quarter, we delivered on our commitments with sales of $193 million, up 8% sequentially, and non-GAAP EPS of $0.06. While the environment remains dynamic, we are encouraged by the positive momentum we are seeing across the business and the signals we are seeing from our customers."

Looking ahead, Allegro provided an encouraging outlook for the first quarter of fiscal year 2026. The company expects total net sales to be in the range of $192 million to $202 million, implying a year-over-year growth of 18% at the midpoint. Additionally, Allegro projects non-GAAP diluted earnings per share between $0.06 and $0.10 for Q1 2026.

The positive guidance, coupled with the strong Q4 results, has boosted investor confidence in Allegro's growth trajectory. This optimism is reflected in the significant pre-market stock price increase, as traders and investors react to the company's ability to navigate current market challenges and position itself for future growth.