$ALAB · Astera Labs, Inc.
Astera Labs reported Q3 FY2026 results with record revenue of $584.9 million, up 154% year-over-year and 49% sequentially. GAAP diluted EPS was $0.99; non-GAAP diluted EPS was $1.32. The company guided Q4 revenue to $730M-$750M and non-GAAP diluted EPS of $1.62-$1.66, both well above Q3 levels.
- Q3 revenue of $584.9M, up 154% YoY and 49% sequentially, with Scorpio fabric switches becoming the largest product family.
- GAAP gross margin of 72.3%; non-GAAP gross margin of 72.4%; GAAP diluted EPS of $0.99.
- Non-GAAP diluted EPS of $1.32; non-GAAP operating margin of 44.7% on $261.6M operating income.
- Q4 guidance: revenue $730M-$750M, non-GAAP diluted EPS $1.62-$1.66, implying ~26% sequential revenue growth at midpoint.
- Announced Aries 7 PCIe 7 signal conditioning portfolio, Orion rack-scale reference architecture, and expanded Leo Smart Memory Controller family.
Extended-hours trading shows ALAB at $233.20, down 0.18% from the regular close of $233.62, suggesting the blowout quarter and strong guide were largely priced in or met elevated expectations for the $40.53B market-cap company.
Astera Labs is emerging as a critical connectivity bottleneck-solver in AI infrastructure, with revenue nearly tripling YoY and a product roadmap spanning memory, optical, and rack-scale systems.
Astera's 154% YoY growth and Scorpio ramp underscore the AI infrastructure buildout's shift from compute to connectivity, with the company positioning as a rack-scale platform play rather than a point-product vendor.
Customer concentration risk: revenue remains heavily dependent on a small number of hyperscale customers. Tariff and geopolitical risks cited, including potential Taiwan-China conflict affecting semiconductor supply chains.