Astera Labs Posts Record Third-Quarter Revenue of $584.9 Million
Key Facts
Astera Labs reported record results on November 3 for the third quarter of fiscal 2026, which ended September 30, with revenue of $584.9 million, up 49% from the previous quarter and 154% from the same period last year. The company said growth was broad-based and led by Scorpio products, which reached high-volume production and became its largest product family by revenue. The figures show an acceleration in expansion during the quarter, as year-over-year revenue growth exceeded the rate in the previous quarter. The company issued fourth-quarter guidance for revenue of $730 million to $750 million. It also forecast non-GAAP diluted earnings per share of $1.62 to $1.66.
Revenue followed a reported $392.4 million in the second quarter of 2026, when sales rose 27% from the previous quarter and 104% year over year. Annual revenue growth therefore increased in the third quarter compared with the second-quarter rate, while quarterly growth widened from 27% to 49%. The CEO had said in the second-quarter results that the company expected momentum to accelerate in the third quarter as Scorpio switches became its largest product family. In its latest results announcement, the company said Scorpio drove broad-based growth during the quarter and that Scorpio X-Series reached high-volume production. The company thus links wider sales growth with progress in its product family, without attributing the increase to another specific demand factor.
GAAP net income was $182.9 million, and diluted earnings per share under the same standard were $0.99. Non-GAAP diluted earnings per share were $1.32, a measure separate from the GAAP result. Gross margin was 72.3% on a GAAP basis and 72.4% on a non-GAAP basis. Non-GAAP operating margin was 44.7%. These indicators put profitability alongside record revenue growth, while keeping GAAP measures separate from adjusted measures.
Fourth-quarter guidance calls for revenue of $730 million to $750 million and non-GAAP diluted earnings per share of $1.62 to $1.66. Astera plans to begin sampling Aries 7 products to selected hyperscaler, OEM and NPO customers during the fourth quarter of 2026. For Orion products, the company is targeting availability of rack and system reference designs through its OEM and ODM partners beginning in the first quarter of 2027. These dates provide near-term milestones for tracking product portfolio expansion after Scorpio rose to the top in revenue. ALAB shares closed at $229.67 on November 2, 2026, before the results announcement on November 3.