Astera Labs Sees Fourth-Quarter 2026 Revenue of Up to $750 Million
Key Facts
Astera Labs on November 3 forecast revenue of $730 million to $750 million for the fourth quarter of its fiscal 2026, along with non-GAAP diluted earnings per share of $1.62 to $1.66. The EPS estimate is based on about 187 million weighted-average diluted shares, according to the official earnings release. The announcement sets a revenue and earnings range for the coming period after record performance in the third quarter. The release did not include a comparison with analyst estimates, so the guidance cannot be described as beating consensus or raising a previous forecast. EL7 data showed the company’s shares, ALAB, closed at $229.67 in the November 2 session, before the results and guidance were announced.
Third-quarter revenue was $584.9 million, up 49% from the previous quarter and 154% from the year-earlier period, the company said. Astera Labs reported second-quarter revenue of $392.4 million, up 27% quarter over quarter and 104% year over year. In August, it had forecast third-quarter revenue of $540 million to $560 million and non-GAAP diluted EPS of $1.16 to $1.21. Non-GAAP gross margin in the third quarter was 72.4%, while diluted EPS on the same basis reached $1.32. These figures show revenue accelerating between the second and third quarters, with earnings and margins providing context for the outlook for the coming period.
For the fourth quarter, the company set a non-GAAP gross margin of about 72% and non-GAAP operating expenses of $194 million to $200 million. The company links part of its growth to Scorpio products, saying the family’s fabric switches have become its largest by revenue after the Scorpio X-Series entered volume production. The chief executive described third-quarter growth as “broad-based and led by Scorpio,” adding that design activity accelerated as the company won programs across a wide range of customers. In August, the chief executive said Scorpio switches would become the largest product family by revenue one quarter earlier than previously expected. This progress puts Scorpio at the forefront of the company’s portfolio, while the expense and margin forecasts reflect its financial targets for the fourth quarter.
For upcoming products, Astera Labs expects to begin sampling Aries 7 in the fourth quarter of 2026 to select hyperscaler, OEM and co-packaged optics customers. It also targets making Orion reference designs and system designs available through its OEM and ODM partners starting in the first quarter of 2027. The company was scheduled to hold a call to review third-quarter results and discuss its outlook on November 3, 2026, at 1:30 p.m. Pacific time, or 4:30 p.m. Eastern time. These dates put Aries 7 sampling on the near-term horizon, while plans to make Orion designs available extend into the start of the following year. Those dates remain part of the company’s announced product plans, alongside the revenue and earnings range it set for the fourth quarter.