Astera Labs Sequential Sales Growth Accelerates as Scorpio Leads

The Tip Desk · November 3, 2026 · 2 min read

Third-quarter revenue reached a record $584.9 million, up 49% from the prior quarter, as Scorpio fabric switches became the largest product family.

Astera Labs, Inc. (ALAB), a semiconductor connectivity supplier for rack-scale AI infrastructure, reported record third-quarter revenue of $584.9 million, up 49% from the prior quarter and 154% from a year earlier.

Sequential growth accelerated from 27% in the second quarter, when revenue was $392.4 million. Year-over-year growth also picked up from 104% in that period.

Chief Executive Officer Jitendra Mohan said the quarter was led by Scorpio, which ramped to high-volume production and became the company’s largest product family by revenue. The mix shift followed the second-quarter outlook that a third-quarter inflection would be driven by the Scorpio X-Series 320-lane fabric switch.

GAAP gross margin compressed to 72.3% from 73.3% in the second quarter. Non-GAAP gross margin was 72.4%.

GAAP operating income rose to $179.1 million, and GAAP operating margin expanded to 30.6% from 22.7%. Non-GAAP operating income was $261.6 million, and non-GAAP operating margin was 44.7%. GAAP net income was $182.9 million, or $0.99 a share. Non-GAAP diluted earnings were $1.32 a share.

Research and development expense was $171.0 million. Sales and marketing expense was $37.4 million. General and administrative expense was $35.3 million.

The company expanded its portfolio with Aries 7 for optical and copper signal conditioning, Leo 2 and Leo X-Series for AI and general-purpose memory expansion, and Orion, a rack-scale reference architecture. Mohan said design activity accelerated with wins across programs and applications at multiple customers.

Aries 7 products are expected to begin sampling in the fourth quarter of 2026 to select hyperscale, OEM, and near-packaged optics customers. Orion rack reference and system designs are on track for availability through OEM and ODM partners beginning in the first quarter of 2027.

Cash and cash equivalents were $209.4 million at September 30, 2026. Marketable securities were $1.17 billion. Accounts receivable, net, were $284.3 million. Inventory was $200.9 million.

For the fourth quarter of 2026, Astera Labs estimates revenue of $730 million to $750 million, GAAP gross margin of approximately 72%, GAAP operating expenses of approximately $273 million to $279 million, and GAAP diluted net income of approximately $1.13 to $1.17 a share on about 187 million weighted-average diluted shares. Non-GAAP diluted net income is estimated at approximately $1.62 to $1.66 a share.