Astera Labs Q3 Revenue Soars 153.7% to Record $584.9 Million as Scorpio Ramps; Sees Q4 Up to $750 Million

Astera Labs reported record third-quarter revenue of $584.9 million, up 153.7% from a year earlier and 49.1% from the second quarter, as its Scorpio fabric switches ramped into high-volume production and became the company's largest product family.

GAAP net income doubled to $182.9 million, or $0.99 per diluted share, from $91.1 million, or $0.50, according to the earnings release the AI connectivity chipmaker filed with an 8-K on Tuesday. Adjusted EPS jumped to $1.32 from $0.49.

"Astera Labs delivered outstanding Q3 2026 results," CEO Jitendra Mohan said in the release, adding that growth was "led by Scorpio, which ramped to high-volume production and became our largest product family by revenue."

Outlook calls for another step up

For the fourth quarter, Astera Labs estimates revenue of $730 million to $750 million, which would be a 24.8% to 28.2% sequential increase. It projects adjusted EPS of $1.62 to $1.66 and GAAP EPS of $1.13 to $1.17, with gross margin the company estimates at 72% on both a GAAP and non-GAAP basis.

Margins shift with the mix

Operating income more than tripled to $179.1 million, lifting GAAP operating margin to 30.6% from 24.0%. Non-GAAP operating income rose 172.1% to $261.6 million, for a 44.7% margin.

Gross margin moved the other way. GAAP gross margin fell to 72.3% from 76.2% a year earlier and 73.3% in the second quarter. Non-GAAP gross margin was 72.4%, down from 76.4%.

The company reported a $9.1 million tax provision in the quarter, compared with a $24.3 million tax benefit a year earlier.

New products

Astera Labs introduced Aries 7, a PCIe 7 signal conditioning portfolio expected to begin sampling to select hyperscale, OEM and near-packaged optics customers in the fourth quarter. It also unveiled Orion, a rack-scale reference architecture that lets customers choose their own GPU and CPU, with availability through OEM and ODM partners slated to begin in the first quarter of 2027. The Leo memory controller family added Leo X-Series and Leo 2 E-Series and P-Series products.

Balance sheet

Cash, cash equivalents and marketable securities totaled $1.38 billion at Sept. 30. Inventory rose to $200.9 million from $59.0 million at the end of 2025, and accounts receivable climbed to $284.3 million from $83.2 million. Operating cash flow for the first nine months was $341.5 million.

By the numbers

• Revenue: $584.9 million, up 153.7%
• GAAP EPS: $0.99, up from $0.50
• Adjusted EPS: $1.32, up from $0.49
• Non-GAAP operating margin: 44.7%
• Q4 revenue outlook: $730 million to $750 million
• Q4 adjusted EPS outlook: $1.62 to $1.66

Sources

1. Astera Labs Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001736297-26-000044)

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